All Forum Posts by: Percy N.

This may vary by state but in some states the lender can only claim the amount due on the loan, interest, fees and legal costs, which can add up quickly.

@Giang Nguyen, welcome to BP!

@Steve Babiak is one of the DIG sub-group leads for the Chester/Montgomery county subgroup and since he is too modest to toot his own horn, I will say it is an excellent subgroup and I try to make every meeting.

UCity is a very competitive area. If you got a B class unit all in for under $75k, you hit the jackpot. Who is your target renter? Student rentals are a niche and I would be selective in what finishes I use based on the target tenant.

You could remind them that your offer does not involve them paying a 6% (or whatever the $ equivalent is for the price of the property) commission to a realtor,  you have flexible closing and if you are paying cash, no risk of financing not going through. That is worth a premium.

Tell them you are only looking for 1 house to buy for your next project and if you move on, you will buy something and not be able to make the same offer again.

@Nathan Harvey, google Michael Blank, Rod Khleif, Anthony Chara, to name a few.

@Jackie F., traditional wholesaling is when there is only one transaction and the wholesaler gets an assignment fee shown on the HUD1.

However, some title companies will not do this (and some states may not allow it), so a double close is performed, where 2 closings take place back to back. The first is from the seller to the wholesaler and the next is from the wholesaler to the buyer. This is sometimes called A -> B -> C transaction.

Jackie F. Generally speaking, if it is a straight assignment, the wholesaler should not may much fees other than maybe a wire transfer fee. If you are doing a double close then there will be more fees.

Priceton Braswell , 5-10k is too little for a lender. You may want to ask friends and family to someone at your local REIA. If you offered a first position lien on a decent property, I am sure someone might bite.

Chris Sullens as others mention this is referred to as double close and typically needs the wholesaler to fund the first part with transactional funding which costs them about 2% If you want to push back on them you can use this as your bargaining chip. Not sure how the bank or state laws will view this. You could always agree to some fee with the wholesaler, but as a consultant post the purchase and pay them that way. Check with your attorney first.

Henri Meli , Congratz on the office bldg purchase. Benefits of cost segregation will depend on the size of the asset. It is not cheap but the tax benefits could be tremendous. Consult with your CPA. Do a google search on it there are many resources available on the internet but make sure you hire a professional who has experience with an asset similar to yours.

Lauren M. Take a look at TenantCloud and Cozy.