All Forum Posts by: Niccolo Fazio

@Lisa K. Bruno Thank you! I will reach out!

@Michael Myers thank you! I was searching for a form as I assumed this, but had no luck in finding the forms. Thanks for linking it here!

Hello BiggerPockets!

To my many investors, Agents, and Real Estate enthusiasts - I wanted to see if anyone had any referrals for an excellent Real Estate Attorney in the North DFW - however I am willing to travel within DFW for a remarkable Attorney.

@Bryant Brislin I agree! I messaged you with a couple of sidenote questions. I am looking to speak with an attorney tomorrow.

@Bryant Brislin Thank you for your input! Glad to see that I am not the only one facing this dilemma.

Part of me is slightly regretting getting my license now due to the complications it imposes on wholesaling. (At least as I interpret it). 

It is nearly impossible for them to regulate or stop wholesaling. Unless they remove the ability to assign contracts to another. And I don't see that happening.

To my understanding - Texas also wants you to be explicitly clear that you are an agent however this transaction has nothing to do with you being an agent. But my concern is that even if stating you are not acting as an agent would they hold you to the same principals due to you being an agent. 

@GARY LEONARD JR I sent you this question in a message, however, I feel like your answer may be better shared with this conversation to add value to all of us reading it. First, thank you for your step by step answer you provided. I feel like it was very easy to understand and you provided a lot of clarity to the original question.

My follow up question comes from the bio in your profile. I see you started an REI company to separate your wholesaling business from your Realtor business. I was thinking of doing the same thing for the same reasons I am guessing you did.

My question is that when you are engaging in Wholesaling I am sure your contracts are signed by you DBA your company. Do you disclose you are a Realtor in the contracts you use for Wholesaling? Do you need to? Or, is it not necessary because you're acting as the business and the business isn't licensed?

Hello Everyone,

I have had this question spinning around in my head recently and have been unable to find a reliable source of information to derive an answer to it.

My question is: Wholesaling as a Real Estate Agent in Texas.

As many of you may know Texas has a heavily regulated Real Estate Market controlled by TREC (Texas Real Estate Commission). It was only recently that Texas passed a law in Sept of 2017 that seems to restrict Wholesaling activities or at least seeks to make them harder to complete. I do not believe this has stopped anyone truly but I do feel that the number of steps has increased, in Texas at least.

1. 1. Is anyone in Texas currently wholesaling and have you run into any legal issues? 
2. 2. Are there any Texas agents completing wholesale deals, and if so, how are you completing them?
3. 3. Again for Texas Agents - Are you doing the deals and simply disclosing you're also an agent? 
4.        3a.Are you using TREC forms or your own when pursuing deals? 
5. 4.Is there anything I am missing?

I obviously want to stay legally compliant and also want to know if it is more valuable to be a Wholesaler vs an Agent!

Looking forward to hearing everyone's thoughts.

Hello @Young Kim,

I am a Realtor out here in Dallas, Texas. And as Jonathan said, you will not be able to work with a bank to finance a property without proof of income, more preferably a job.

From my experience banks only write 3.5% loans on SFH or Duplexes here in the Dallas Texas area. Once you pursue a Triplex/Quadplex they will require more down - typically 15%. Again, this is just from my experience.

For your funding - it sounds like you have $38K liquid and the other $65K in stocks and the like. If you held those only this year you will have to budget for a short-term gains tax. That will really recalculate what amount of money you will have at your immediate disposal. 

For funding options - you may want to consider a Hard Money Lender, JV, or perhaps Owner Financing. Those are options for financing that don't involve the banks and may make it easier to achieve while you search for your next job.

Feel free to reach out to me with any additional questions - I'd be happy to go into more detail with you.

Connect with Me here!

Thank you Jon!

Certainly not! Not the intentions at all. 

I know of individuals who have recieved a SFR loan for a duplex since it falls under the Residential classifier.

Really must depend on the lender then. 

Any suggestions on the best means of financing a deal?

Hello Everyone,

I am looking to break into the Real Estate game and trying to finance my first purchase.

For it, I am looking to house hack a 1 - 4 family building (duplex) here in Texas. Do I need to disclose to the lender that it is a Duplex? Each time I do they increase terms for the property. However, I am house hacking and looking to live in one side.

If it is a Single Family I'll only need 3.2% down, but if they know it is a Duplex they want 15% down on an FHA.

At that point, we would do a Conventional since we are 5% shy of losing insurance.

I understand the increase for an "investment" property - but wanted to see what strategies you all have used?