All Forum Posts by: Juan Michael

I'm a realtor here in California..... Finding properties for wholesale investors is a part of my business model. It accounts for a great deal of what i call QUICK CASH... I find the deals.... Investor/Wholesaler provides POF and EMD.... we take it under contract.... I immediately Blast it out to my list and so does my investors/wholesalers..... If they find the buyer ... i just get the Buyer-side Commission... If i find the buyer... I get the buyer-side commission + 70% of the wholesale fee.... 30% to the investor/wholesaler for providing docs and doing paperwork. It really works well.

Part 2 : 40% of the time.... when i find the buyer.... that buyer will give me the back-end listing.... now i go searching for a retail buyer.... sometimes i find the buyer there too... now i get 5% commission of the rehabbed price... worse case 2.5%....

Point : There is great advantage to having a realtor that UNDERSTANDS the wholesale process, UNDERSTANDS how investors think.... and adds value. Realtor gets what i call FREE MONEY ( Commission paid by the bank(Seller) that the investor/wholesaler does not pay..... And every now and then i can participate in a joint venture with investors that choose to keep and rehab the property for themselves

Hope this helps

Great Advice Folks..... Sounds like you took advantage of their error and figured you could over spend on the rehab..... Lesson learned.

But mark is correct.... The sale is not FINAL and this WILL get messy.... Especially when you try to resell it.....

They're right......... i started as a Bird Dog...got some GREAT KNOWLEDGE and really learned the rope........... got some flips and wholesale deals under my belt....... not i'm ready to try my own..... but take it slow and be willing to learn

Well put Will

OK !

The deposit is usually not given until you have an accepted offer and generally 3-days to actually deposit it into escrow. The check is usually a copy of a EMD check..... not the ACTUAL CASHABLE check.

I have seen that happen but the deal usually needs to be closed in the name of the initial buyer and in most cases the POF needs to be in the name of the buyer and/or corp.( a lot of sellers dont really trip on this one..... but technically it should be done so dont be surprised if they enforce it)

Find a new end buyer :D

I have recently watch one of my investors use an interesting strategy. What he does is have me write an addendum to the contract(after accepted offer) adding a 2nd buyer to the contract. The 2nd buyer is actually the person he is wholeselling the property to. he then has the vesting as follows 99.9 for the new buyer .1 for him. he then grant deeds his .1% over after the transaction. he never uses his own money, i've even seen him use their money for the EMD. it can be done. He usually does this on flips/rehab that dont really meet his margin requirements,

Hope this helps

Once again we are on the same page will....... Thank again

He and his Partner have a complete seminar or on how........ they did one @ an investment club i belong to...... It was great.....you missed it.

I hate when you brag Will.......... Good Job !!! But lets be honest you didn't just start there.....i'm sure you had to pay your dues in the beginning like some of us......

:-)

It probably was being held. There are relationships out there that tend to bump ethics(wink wink). You will also find some properties will have already be sold before they are published(MLS). finding the deals with REO companies will have a lot to do with relationships( I have found ) but it is still not impossible....... I would suggest that you keep trying and network more until you find the right match of deal to source. The competition is fierce right now because quality inventory is in short supply and there are new foreign group out there that are willing to forgo the 70% rule and pay more for the property and work on a volume perspective. Just hang tough ... :)