All Forum Posts by: Dave Passey

@Brian Ellis I think it all boils down to why are you upset about this? When you thought the washer and dryer were owned by the tenant did you have a problem with buying new ones for the next tenant? It seems like the only thing that changed is you now feel like they deceived you. Which they did, don’t get me wrong. But, you are not going to be paying any money that you weren’t already expecting to pay and we’re okay with paying. I would just leave it alone. If they want to be dishonest, that is in them, but you are already okay with spending the money.

@Trever Nicoll What is the info on the smaller Tuesday morning get together. I am going to be in the area that day and would love to pop in and say hello to some fellow investors.

@Alli Ojutiku One way I can think of off the bat is get a seller to finance to you on a sale of a property at 0% interest. Perhaps you can offer to be at a little bit of a higher price instead of paying interest. This is not something that I would recommend to people typically because essentially you are over paying and can’t sell quick if you have a higher loan than the value.

@Kazi Islam That matters far less than what you out on the card.

@David Biederbeck

Definitely convenience and security. When you know that you have a buyer for any deal that you contract, you want to keep them happy by continually bringing them deals. Even though you make less money, you can focus on getting more deals because you don't have to now try to sell the deals. It takes a huge portion of your time in the business and wipes it away. Although less money is made per deal, more money is made overall because there are more deals. 

I have wholesaled both ways, I like both for different reasons. It takes a lot of time to foster these relationships with individual buyers and even then, a lot of them end up being flaky or not able to close. The time spent fostering these relationships is time that I am not able to find more deals. 

We worked with a larger group when we were first starting out so that we could really learn the business. We made them many hundreds of thousands of dollars over the 6 months that we worked with them, but then were able to move on and do our own thing with their systems and methods. We essentially were paying for real life education on how to be a big player in the game. Then we went out and tried to foster these relationships with others. 

Many wholesalers do not aspire to be a big player in the game and are just looking for some additional cash on the side. If they can make 3 grand on a deal on the side of their regular job, then that was a good month for them. I think it all depends on what the individual's goals are in the end though. 

@Max Power Lee I find this situation very interesting. My partner and I have discussed this type situation on multiple occasions. So your numbers show that you bought it, put in a very minimal amount of work ($1000) and then sold it for market value. And did this as a real estate broker. One of us argues that this seems unethical for a broker to do because essentially you have a distressed seller and you know (because you have complete MLS access) that their house will sell for significantly more than what you are paying for it and turn around and you make the money on it. The other one of us argues that we don’t know the whole situation here and there are a lot of factors that go into deciding to sell a house. So my question is to you as a broker, did you tell them that their house would be able to sell for a higher price if it was listed? Or did you give them the cash offer and tell them that it was market value?

@Greg Lovern So I few things here that I see right off the bat. You are not going to assume the loan. You are going to buy the property Subject To the existing financing. You aren’t going to ask for permission from the lender. You are probably going to send them something that says the owner of the loan allows you to speak on their behalf. You will change the address and name on the insurance and bank mailing information. Very very few times does the bank ever use the due on sale clause, but I have never heard of anything like the situation you are talking about. They want a performing note and if you can make it performing, then 99% of the time they let you carry on. I would not want to count of the timeline of the foreclosure process for my repair work, nor would I want to count on it having to sell in a certain period of time like that in order to get my money back at all. I would not want to drag the seller back into it by making them go through more of the foreclosure process again. If you are planning on doing a Subject To deal, then it is a good idea to have a contingency if the deal goes wrong. In other words, having cash or other financing available to be able to cash out the lender in the event the due on sale clause is exercised.

@Mike Bwanka What you are looking for is a title company. They will have some sort of in house council. What you need to ask them is if each deal needs to stand alone or if they can use the end funds to close on the first deal. You can do it with just a lawyer, but a title company is what you need.

@Dylan Marcelle Four months and closing on essentially what is your first house hack... congrats man! You are doing in four months what many “investors” are never able to do. Way to go! What made you think that this deal was a good one for you? Can we see how the numbers penciled out in this one?

Hi @Casey Pozzanghera, welcome to Bigger Pockets! The Boise area is an interesting market market for sure. Even though it appears to be somewhat a seller’s market, there are still great deals to be had by those that are willing to work for them. Depending on what your real estate goals are, you will need various people along your way. I personally don’t use a real estate agent to find many deals because they usually don’t fit my criteria. However, I have a friend that bought one last week that was a lead from an agent and the numbers are great! What are your goals with real estate for the short term and for long term? We would love to hear about them and see how we can assist you along your way.