All Forum Posts by: Mike Dorneman

@Shelah Tanner A wholesaler is just someone that has built a relationship with a seller and has a contract in which thenwhilesaler can market and “sell” the property on behalf of the owner. The wholesaler collects a predetermined fee and you buy the property just like in any other transaction. You may not know the whole saler price, meaning you paid a set sale price and the wholesaler fee is between seller and wholesaler, or you may need to pay the whole saler separately prior to closing on the property. I’ve done the later. Just remember to factor in the wholesaler fee to your overall deal if you will be paying this fee directly to the wholesaler.

@Bob Jones No Bob, you’ll be following the same eviction process through the court system.

@Kevin Krysty Jr. Not a real estate book, but a great read that focuses on building wealth around your knowledge and expertise. “Richest Man in Babylon”.

@Kurt Isaac I too stugle with this situation. From a business perspective it’s very simple, raise the rent to market value / increase profit. However we’re human and you seem like a compassionate one. I’ve found success by having an honest conversation with the tenants, and laying out a clear timeline. I’m assuming the lease is month to month, since your considering modifying the price... Id inform the tenants that the rent will increase a small amount (maybe $50) next mont and remain for 3 months. Rent will increase and addition $50 after that. Explain what market rents are and give them the opportunity and time to find another place to live that they can afford. They’ll likely realize that they have it good with a landlord that is responsive and that they actually are paying a very fair price. Good luck, this business can pull on your heart strings at times.

@Nadjib Rusangwa Whatvexavtly do you mean by friendly? I’ve done a bunch of wholesale deals with multiple title companies and they’ve all been, friendly... do they take issue with you collecting a fee and not being a register agent??

@Franklyn Gutierrez This comes down to your desire for separation of your personal assets and that of your “business”. I’m for forming the LLC and purchasing the property under said LLC. This way you have immediately created separation and should something terrible occur and you be found liable / negligent, your primary residence and bank account are more so protected. If you purchase the property in your name, it’s a personal asset. You will pay a slightly higher interest rate when purchasing as an LLC “commercial loan”, but it’s worth it especially if you plan to scale up and grow a portfolio.

@Michael M. Simple answer is Yes. You will need to find a bank that will not require you to “season” the property though. Meaning, many banks will take the purchase price instead of the appraisal price within the first year of purchase. They do so to avoid lending to customers that want to do exactly what you are doing 😁. Don’t be discouraged though. I found a small local bank in my community that is very investor friendly. They don’t require me to season the property and they’ll loan based off the purchase price + renovation costs. They’ll loan 80% Bottom line is you can absolutely do this, you will just need to find the right bank. One other thing to note, these loans are commercial, no residential personal. The guidelines for commercial are much more Investor friendly.

@Anthony Berry I’m about 2 /hrs North, sorry but not familiar with that market.

@Demetrius Hargrove No problem. It’s crazy how vastly different the taxes could be just a few miles apart. Especially when you cross over school district lines.

@Joseph Ranola not specifically in Drums, but the surrounding areas (25 mile radius)