All Forum Posts by: Michael K Gallagher

@Nathan Kapusta you should have gotten an estoppel agreement when you purchased the property and yea will have to honor the current leases. But if your plan is to not renew just make sure you follow local laws on how much notice you must give.

Another strategy is to say, I’m not renewing and if you wish to stay and go month to month…the rents will be x….

Good luck! And congrats on the BRRRR

@Bob Drew I don’t see any huge issues with the paying upfront. But I’d make sure it’s very clearly documented in a statement or invoice or something in writing.

@Lynnette E. Sounds about right, I mean if I had been accumulating properties as a “hobby” land lord, probably never really treating it like a bisuiness, most likely probably didn’t have proper reserves, or cap ex put away…moratorium comes in and they just don’t want to or can’t deal with it so they sell.

@Kyle Danielson 2 points, 1) it is not illegal for listing agents to disclose highest current offer, they just need consent from sellers. Often times that is the best way to ensure the listing agent is acting in the best interest of there clients.

And 2) your agent, if licensed, is under obligation to act as you fiduciary. If you suspect they are not acting in your best interest I’d explore a different agent, but honestly the 50k sounds pretty standard from what I’m seeing.

Welcome to the current market…and the way it’s been for over two years in my market.

@Wesley W. I agree with your logic, the rent increase is irrelevant and separate from the renovation. And to your point if you don’t want to hear sounds from another apartment move to the country and get 100 acres for yourself.

My only question would be the lease situation. Are they on a month to month? Or are they on a lease?

@Alan Walker fantastic look at the data, thanks for this insight.  Agree that 5 offers instead of 10 is hardly a "slow down" 

@Anthony Godines welcome and congrats on jumping in!  I am not a Wholesaler, but I am a realtor so I can speak to it from what I know.  Earnest Money in a traditional transaction is considered a "payment of good faith" ultimately the buyer or person putting down the earnest money gets in back in the form of a credit at closing, or simply in the form of a check from the trust account at the selling Brokerage.

Non refundable deposit is something I am not too familiar with, but I assume it would go to the seller.  If you wanted to structure it as part of your assignment fee, similar to earnest money, that is something that I think you could make happen with the title company you are working with.  As a side note, if you are going to be doing wholesaling, it would be worth building a relationship with a title company in your area adept at doing those kinds of transactions.  

I'm not a wholesaler so take the above with a grain of salt and your own due diligence.

Good luck!   

@Will Barnard Well said!!  I was reading that like....last time I checked, even in this market, if I list a property for more than that market will support I'll end up having to drop the price or take an under market offer.  Also last I checked there was no "board of wholesalers" that fined them for not being compliant and ensure they are acting as a fiduciary.   

never made that connection before...pay day lender to credit union....very astute comparison!

Hey @Paul Maurer a couple of points to make here:

- was their an "estopple" agreement signed during the buying process? that might have some details on how the transition is supposed to go.

- If you have presented the current tenant with a lease and they have not signed, There are a couple ways to handle it.

1) give them some more time and communicate a date you need a response.

2) continue to give them notice per your local laws to go in and change locks/do the work you need to.  The fact there is no lease should not prevent this.

3) If they do not wish to sign a lease and wish to stay month to month...Then I'd draw up that agreement in writing too so you have it, and make sure to consider a rent increase if they stay month to month.

If they don't want to stay or don't want to sign a lease then you can decide if you want to turn the unit over and just give them the required notice per your local laws to vacate.  

Hope this helps!  and congrats on the deal!