All Forum Posts by: James Hamling

Addressing only and exactly what you put in the O.P.:

You asked how to do the sale. If between you and your son, you can do it with just a r.e. attourney and save some significant fees. This is ONLY for a case like this where both parties feel 100% safe and certain of no issues. Although for his financing, if conventional, you will have to follow with the cavets of his financing co., like title insurance.

As for realtor:
It's business. You say he would have worked for 2yrs without pay. You can also see it in the light that in 2yrs he has not gotten the job done either. It is what it is, you gotta take care of you. Hey, if the realtor got it sold but 20K below what you need, do you think he would have cut his commision in half to give you more cash? It's a personal choice if you want to donate to the realtor.

I really think the whole term "wholesale" is misleading and over used.

To be in the right frame of mind, the term should be "discount supply specialist".

As a cash buyer, thats who I want to talk to and buy from, a "discount supply specialist", someone who is going to originate investments with a profit margin.

From all I have read from newbie "wholesalers" I seem to see a common theme; trying to do it with little to no work. Thats all late night tv guru bs. The pro's of pro's post over and over again the links and posts of the "how-to". It's work, hard work. A person has to do it how it works, THEN work to improve upon that, stream line, efficency.

In my opinion, don't try to start out reinventing the wheel, just work to make it rounder.

If you focus on "free and clear" homes, which I have been looking into, I think you got a great market with a lot of growth potential in it. Lots of retirees happening, many owning there homes 20+ yrs, equity rich. Lots of potential.

Best of luck to ya, and hope ya hit it hard, put in the leg work.

I agree strongly with all above.

You made yourself liable by knowing of the day care operation, so yes, a good lawyer could attach you into it. Know your local laws, insure the snot out of yourself. CYA!

And about leaving them there, not to sound harsh, but there in a financial troubled spot on there home currently, do you want that to be with you at some point? Really know there situation, and how they got there. If they couldnt pay $1,500 per mnth before, don't expect $1,250 to be so different. ~BUT~ IF you change the financials, hey, it could be great. Personally, I'd say do a lease option with them instead. You get a non refundable lease fee, you hold title, get monthly payments, and they are responsable for the place (on paper) and hopefully in mind. Remember to seperate the lease contract from the option contract, that way if they default it is real ez to give em the boot. If that works out for a year, you can always have them cancel there option and keep the lease, and you still got that fee.

Stephen,

In my state, if a person is a licensed realtor or broker, they must disclose it in any and all r.e. transactions, even one as simple as buying there own home, even if being represented by another agent. Not being an agent, I don't fully know why or understand, I just know my go-to agent is a super star and REALLY knows his stuff, and I recently had the conversation with him and that was his take. Something about the liabilaties, and repurcussions due to there status as licensed.

First, sorry for that multipule post, I have no idea what happened, my cpu got the hicups.

On the wholesaler topic, has anyone ever found a place that legitimate wholesalers congrigate, such as a club, a web site of some kind, anything?

I myself have not found this magic spot. And the advice of REIA meetings, real real spotty in my experience. I am certain there are many legitimate ones, but figuring out exactly who is and is not, I have not found the short formula for doing so, just trial and error. Or I should say near error, discovered after wasted time and deal verefication.

Myself, no joke, I spend easily 7/10 of my time reviewing bs deals. I get swamped every day with submissions. My due diligence is not quick, it eats my time up. In the last months, I seriously have reviewed 2 TWO legitimate wholeasler deals, both from the same guy. Bogus ones, gotta be over 100, well over. Worst part, I suck as a wholesaler, lol. I can buy MLS all day, negotiate like a champ, but the good money is in wholesale and I'm stuck on stupid on that avenue.

Chris,

In reading this I right away had a thought, this could be a "next gen" platform well beyond real estate investing alone itself, and a potential picture of mortgage generation itself.

In the traditional system (soon to expire) a bank or broker originates a mortgage. That mortgage thru what ever channel is sold to Fannie, Freddie, and so on. Who then in turn repackage, and resell again to a private investment holding, like a REIT.

I think you have truly hit upon a great point, and I personally feel this just may be our glimps at a fully privatized, tech savy next gen system.

Now, just for someone to build it. I believe a platform very similar to the types Max Kiser has built would be on line to this. If I had a few mill growing dust, I may have to jump on it, lol.

James,

This is totally NOT to harp on you, I myself have just tried reading your original post several times....... and I am still not so clear on it. It's hard to say much to help when so uncertain.

And as stated by Jon, if your in other states right now, and focusing on being in all 50, I am confused how your "small" by any means. I am also confused how you can have that current footprint and no finances, either in reserve, flow, or equitable draw.

I just wanted to say Thank You for putting this topic out there.

It is very reassuring to see so many responses, so I know I am not the only one dealing with the "wholesale" jackals.

Another point to the issue. I have been buing and rehabbing REO's since the very very begining. I was into new development construction, and saw the fall coming a mile away. For the last years there has been month-month development as to buying, but I will tell ya what, it has NEVER been HALF as impossible as it has been the last 6 months. Reason being, a FLOOD of super novice "wholesalers" grabbing up properties on contract, and of course they can, there throwing offers out there that have no margin.
I forsee another collapse, the novice investor defaults, of unknowing people who read a book, saw a video, and wanted to get into R..I. (good 4 them) BUT were told it was easy, duped by these HACK "wholesalers", and are into a loosing investment.

I feel for those people. There is a moral obligation to R.E.I., we are the informed experts in a conveyance of what for most people is the #1 most important purchase and belonging of there entire life. It sickens me to see people knowingly, wantingly, taking advantage of the ignorant and trusting, using the fine print excuse of do your due dilligence". It's like opening a stand selling an "elixer cure for cancer", charging top dollar, and when they die and relatives come back pointing out the fine print of "do your due dilligence".

Yes, DO do your due dilligence, but a scam is a scam, period. Saying they didn't find out it was a scam until after, does NOT place burden on the buyer.

I wish there were a way we could root that ugly element out. They ruin the name of us all, make all good R.E.I. harder, will cause more stringent regulation to pass, AND make it far harder for a newbie to start and rise.

Good to hear all comments and serious interest on this. It is easily one of our top issues at hand effecting us all, especially if the "predatory" side of it grows, causing MORE regulations on us.

What your missing is *what is your competition*?

If your going to be offering at a discount price, where theres little stock, and you pretty much hold all the cards, then I'd take that gamble.

If not, well there is no way I would not do it. craig patterson Had 5 star advice, on how he gets Norandex windows on big discount. I am a contractor, and that is the #1 smartest investor move I have heard in a long time.

I ALWAYS replace all windows. Energy efficency is a big deal, and big selling point. It sets your property apart from the others, is very obvious and noticable, and every time a buyer has done a viewing they say "oh wow, new windows". So, I ALWAYS do windows, so my listing time is as close to 0 as possible.

I say, if your on the fence about it, do it but do it smart.

Absolute best thing you can do, while under contract BUT BEFORE executing contract fully (ie. buying), get detailed renovation bids. You could throw out an ad that your looking to hire for a bog renovation, and contractors can do estimates on XYZ day between XXX too XXX and to e-mail with credentials for address.

more then getting numbers, you will get free ideas, and possibly a solution you never saw.

A warning on projects like that, most state reg.s state that once you open a structure exposing framework, it is subject to inspection AND must be up to present code. But if you leave it closed, it is "grandfathered" in. This is observed in many features other then framing, like electrical, plumbing, etc.. So point is, a certain renovation can snow ball quickly by having to do unplanned work simply because you opened up an area. Make certain to understand your state bulding codes, and city/ local building codes for the specific project. It can make a good deal ugly real fast.