All Forum Posts by: Mohammad Alabsy

Hello BP members,

2200 finished Square Feet 2 flat gut rehab project (Plus partially finished basement). Mold in basement and upper level. Roof has a hole in it. Will need an estimate for roof, demo/drywall installation, pluming, hvac, electric, flooring. I will do the painting, windows and kitchen/bath installation. Back porch is in good shape and garage is in good shape. structurally the building seems in great shape.

Time is of the essence obviously due to the hole in the roof/Chicago rainy weather. Please feel free to reach out to me. I will respond to any questions within minutes.

Thanks,

Mohammad Absy 

Chicago, IL

From my experience researching (about 6 months or so). I can tell you what ever wholesalers tell you the cost of rehab is, go ahead and double it to get the real number of total money to be spent. ARV some wholesalers offer is a no good because they leave out cheaper properties to make it look good. Wholesalers want to make money and unfortunately some times the naive and new/energetic not enough research investors fit the bill. It's the reality of things. I advise any new investor to do extensive research about any property they are thinking about rehabbing before pulling the trigger.

Thanks for replies guys. Much appreciated. I have consulted with an attorney regarding the contract and will bring up both points to his attention.

Thanks again.

Hi BP Community,

I have found a deal from a wholesaler in the Chicago area (First time buying from a wholesaler). We agreed on price. The wholesaler sent me a one page contract with basic information (Standard contract). Basically it's saying seller has to deliver clear contract free of back taxes and liens. It also has an agreed upon closing date, Ernest money deposit. But there are three lines in the contract I need help with.

First line:

In consideration of the sum of $ ______as earnest money due upon acceptance. Earnest money is non refundable with exception to seller not delivering free and clear marketable title.

(Question: Is the closing date the date the seller has to provide clear title?)

Second line:

Closing date shall be on or before XX/XX/XXX . Seller grants any extension needed to clear title or to

complete closing documentation. 

(Question: Does this mean seller can say I am making a one year extension without me agreeing to it? Do I get my Earnest Money back if I disagree with extension?

Third Line:

The Buyer agrees that this sale is conditioned upon Seller acquiring property from the current fee owner.

(Question: What does this mean? Is it possible seller who made deal with wholesaler does not own property yet? and seller can make extension to contract until seller gets full title rights? and from the lines above, does that mean seller can create an extension until he/she gets title and if I don't agree could I potentially lose my earnest money?)

Anyone has seen a one page wholesaling contract. 

Any help will be very very much appreciated.

Thanks.