All Forum Posts by: Manny G

Wow! Thanks alot for that great response @Whitney Hill !!!

Roberto I just may take u up on that offer. 

Let me ask.....what about financing?... Let's say we get the loan in only his name because he has a better credit score and well documented income. Is there a way for me to legally be a 50/50 partner without being on the loan? Just wondering about that. 

Thanks!!!

A friend of mine owns a lot and wants me to build a spec home on it to sell and we split the profit 50/50. He works a full time job so I would be in control of 100% of the project. If he puts up the lot and gets the construction loan, what's the best and easiest way to structure this so that we are both 50/50 partners?

Thanks !

I see nothing wrong with the fee.

He's saying it would sell "fast" at 85k, which ultimately means it's a good deal. Not necessary a wholesale, but a good deal.

A few guys in my area do exactly this. They get a property as cheap as they can and then sell to an end buyer for a "good" deal. 90% of the time to someone who will live in the home, not an investor. So it's not wholesale, but not retail either.

Not sure if u can in ur area, but they also double close.

J Scott, let me try to clarify a bit. He is not marketing any property as an investor. He does marketing such as "we buy houses" and "stop foreclosure" ads to generate shortsale leads. So he is marketing/advertising himself as an investor to get these leads.

Once he gets a property under contract after negotiating with a bank, he then lists it as a realtor through mls and other avenues.

Yea it's confusing, but is working well for him.

I know a realtor who does marketing in order to generate shortsale leads, he does this marketing acting as an investor not a realtor. Then negotiates with the bank as a realtor who's found a buyer and puts his llc as the buyer. Bank asks no questions about the llc from what I'm told. Once an agreement is made with the bank he lists the property on the mls while also marketing it to investor. He then double closes.

I'm not sure what's ethically or legally right but I know this is 95% of his business and is doing pretty well working it this way.

I think it will have a lot to do with your area, the title company for double closes, and how lienient your broker is......letting u list even though u are not the actual owner yet, but u do control it so I'm not sure about that part.

Sweet, thanks for the replies.

I'm a licensed agent and experienced rehabber and I'd like to get into the wholesale side of things.

My question is, why does everyone say find a "cash buyer" to flip to ?

The obvious reason would be because this cash buyer can close faster. Well in my town even when youre a cash buyer you still need to run a title search which sometimes takes 2 weeks.

If I have a good deal why couldn't I flip it to a couple (for example) that's looking for a home and can get this home for a discounted price compared to the rest of the neighborhood ?

Let's say I was given 30 days to close with my contract. If it takes me 2 weeks to find a buyer who needs to get a mortgage, in my experience the sellers would gladly give me a 2 week extension to close. Because if they don't give me an extension they will have to market the property all over again, and may not find a buyer for another couple weeks and then when they do they may encounter these same problems all over again. So most sellers in my experience will offer an extension instead of starting over.

So yes, cash buyers are better of course, but do they HAVE to be cash buyers ? Not really, right ?