All Forum Posts by: Marvin McTaw

@Max Biggar sounds like you are a man with a plan! Let us know what ends up happening! 

@Justin Westmoreland - that's great! Congratulations on the closed deal! 

@Angie A. - that typically means you've started title and lien searches. In Georgia, we use attorneys to transfer ownership of real estate via closings. In most other states you can use Escrow companies but you can also close with attorneys, they just probably cost a little bit more. 

@Joshua Howaniec are you referring to Seller marketing? We use phone calls, email, text messages, voice broadcasts and direct mail in our conversations with sellers, just at different stages of the process. Different people respond to different mediums. 

@Ronald Sohan II regarding title companies, it looks like you're in Brooklyn so I would encourage you to reach out to local real estate wholesalers there that you find on Bigger Pockets, Craigslist or through a local Real Estate Investors Association to see what closing attorneys or escrow agents they use. 

You could also just search on Google and just call up as many closing attorneys as you can in a day or two to see if they do double closings. You only need one to say yes.

Regarding the costs, I don't know what's typical in your market. If $3,000 is the typical closing cost, build it into your purchasing and business model to account for the cost.

All that being said, I would encourage you to read through this too: Real Estate Wholesaling: The Ultimate Guide.  

@Lisa Wright that's an interesting scenario indeed. First off, don't do anything illegal or unethical. Your friend should also be cautious especially if he's sharing people's personal information with someone outside the company. He might find himself getting sued by his current employer or most likely unemployed. 

Typically speaking, most people don't wholesale property contracts at that price range for a variety of reasons. I'm not saying it's not possible, its just not where the majority of the activity happens. 

One of the main benefits of wholesaling is the speed of transactions: people typically work with wholesalers because we can get deals done in days/weeks instead of months via other methods. The difficulty in trying to do that at that price range is that it's a much smaller pool of people who can make those kinds of purchases in the kind of time you'd typically need to get a deal done. 

Regarding your main question though, yes you can approach property owners and offer to buy their property. In many cases, you will buy their property and then concurrently re-sell it to another investor. I want to reiterate not doing this with your friend/colleagues information on mortgage delinquencies and statuses from work because it is likely either unethical or illegal. 

@Justin Westmoreland I beileve you're in Pennsylvania. I'm not familiar with all their rules around estates so I will just give you some general guidelines which should typically apply. 

It sounds like you're going to need to go through probate to get your co-party to have the authority to sell. The other option would be to have any existing heirs sign quit claim deeds releasing their rights of ownership to the property. Either way, I would suggest you talk to your closing attorney or a probate attorney in your state. 

@Gerald Harris what caused you to ask this question? What specific direction are you looking for in regards to this? Are you considering selling your property to a neighbor?

@Rozelle Wilson we use Podio to as our CRM database. I would suggest whatever works for you and you know will stay updated. Frankly, a simple spreadsheet could work for most people.

@Max Biggar - you've laid out a lot of information but the details do matter here. If I were in your shoes, I would probably still try to work to get the front end price better so you could just do a typical wholesale transaction. Depending on the condition of the house, you might have potential to wholetail deal there and net about $20-30K assuming you don't touch it. 

I personally wouldn't advocate taking on ownership risk (e.g. interest, points, fees, carrying costs, etc.) for that level of margin though. 

You could assign your purchase and sale agreement to your buyer as long as that right is within the agreement. I would also caution you to look out for an issue with the lender if he is going to go with a conventional or traditional loan. Regarding your fees, you don't have to get paid an assignment fee at closing. You could be paid those funds outside of a closing and HUD-1 Statement in a direct transaction with the buyer.