All Forum Posts by: Mike Schorah

 More than a 10% discount. I almost wholesaled a property that I got for $150k. There were title problems where it had to go through the court. It ended up selling on market for $230k. The most it would pencil out for me in a wholesale deal would have been $170k. Even at that price it’s more than 25% off the on market price. And the same held true for other deals.

And wholesaling a property above $350k ARV is extremely rare in my area. Properties above $350k ARV have more sophisticated sellers and very rarely need any rehab.

There are 3 counties out of 15 total counties in my area where there is nonstop gold. In those 3 counties, the median home price is $300k. The average population is 300k. I forget the 3rd metric as I don’t wholesale anymore. But when all 3 aligned, it added up to the perfect formula for home flipping deals which is 80% of wholesaler’s client base. 80% of my leads came from 20% of my local counties

Sure Denver itself might not work out, but if you go out far enough, you’ll find a county or two where the median home value is less than $350k (to find distressed sellers) and the population is more than 100k (to find cash buyers). I’ve never analyzed Denver, but I know that with Miami, NYC, and DC… that’s a long traveling distance to find a viable county. Over an hour, if I remember correctly.

I'm sure they existed. Wholesaling existed in the 1980s. It was described in the book "How Real Estate Fortunes Are Made" by George Bockl which came out in 1972.

When after 1980 did BRRRRs start making sense? 1985? 1990? 1995?

Hypothetical 

A real estate agent contacts a potential seller (Lead A) for business. Lead A states that she’d like to see if the real estate agent can find her a buyer. If not, then Lead A states that she’d like to put the property on the market.

The stars align and the real estate agent contacts another potential seller (Lead B) who is interested in finding a property first in this tough market. Lead B states that if the real estate agent can find a property matching his criteria, he will use the real estate agent as both a buyer’s agent and a listing agent.

Lead A’s home matches Lead B’s specification in what Lead B wants in a property.

How does the real estate agent get paid in this scenario? Does the real estate agent need to have paperwork signed as a buyer’s agent to get paid or can the real estate agent just match the buyer and seller somehow and get paid? If the real estate agent doesn’t want to sign a buyer’s agency agreement, can the real estate agent still get paid for matching the buyer and seller without a listing agreement with the seller?

For instance, in Pennsylvania

Can a wife go behind a husband’s back and write a quitclaim deed that transfers the property to a joint tenancy and the now ex-husband not have a valid claim on the property?

I'm guessing BRRRR was the go-to strategy from 2013-2022 and creative finance from 2022-present.

What was the go-to strategy of 2009-2013?

And prior to 2009?

What about tax liens, mechanics liens, judgement liens?  Are they taken care of with a lis pendens or is there some other process to initiate the legal action?

How would you sell that over an 8 hour phone conversation with a bank?

I hear of people doing it and it’s supposed to be the #1 way of getting subject to’s with equity, but how?

Do you just personally pay the arrears?

If there’s $20k or $40k of equity in the property, for instance, could you get that out somehow to cover your costs of catching up the mortgage?

I was reading that it’s not exclusively forbidden.

Specifically referring to Pace Morby’s Gator Lending, for a sub to deal for instance

What’s the biggest disaster?

A lack of response to this question shows how frightening U.S. foreign affairs policy is in 2023.