All Forum Posts by: Phil G.

I suspect OP is probably long gone from the forums.

It is interesting how REI has become the new gold rush. People with no real knowledge (other than guru gobbledygook), no cash, credit, general business experience or contacts rush in thinking that "them there hills are full of gold". And many will be very disappointed that it's no where as easy as they think.

Just the number of people introducing themselves on BP each day as brand new investors is pretty staggering to me.

Not to put too fine a point on it.  But non-wholesaler investors buy listed properties every day...  Good luck with your investing!

An agent acting in the best interest of his client should advise his client as to whether they believe it is a good offer for the seller.  It is part of their fiduciary responsibility to let their client know of concerns they may have.  The seller ultimately makes the decision.

Here in Massachusetts and New Hampshire, no right of buyer or his agent to be present at the delivery of an offer is conferred on the buyer.

Ethical considerations aside..  I have to say that I'm kind of amazed that some of these marketing techniques work.  Maybe I'm off base, but I always feel kinda bad for a seller who thinks that calling the number on an anonymous sign in a vacant lot next to the Dairy Queen or responding to a "handwritten" yellow letter is a good idea.

Love it.  Is it ethical to plant signs saying "I Buy Bandit Signs" or should it be "Cash for Bandit Signs"? 

I hardly think that your anecdotal description of a deal has anything to do with the ethics of a business practice.  You may very well bring a value-added skill to the table, but it's up to an informed seller to make the decision as to whether that's the way they want to go.  Discussing ethics is hardly "holier than though".  Realtors, mortgage brokers, attorneys all have codes of ethics and they were arrived at by groups of people discussing what is and what is not ethical.

EXCEPT the inspection contingency is disclosed and sellers are aware that the deal could fall apart due to inspection or due to a financing contingency.

IMHO, this is not a good analogy. I think pretty much everyone understands what a real estate agent does and what they mean by "I sell houses". In addition, the listing agreement with the seller is pretty clear as to the relationship. Wholesalers who are signing a P&S with no intention of buying that house or maybe intend to buy the house IF they can find a buyer, without disclosure that the seller may be sitting on the property when all is said and done, I believe are acting in an unethical manner.

@Andy M. 

I would definitely use an IRA LLC (checkbook control) or a self-administered solo 401(k), if you qualify. I have both and wouldn't want my money in the hands of an organization that isn't covered by insurance like FDIC or SPIC. I only leave a few hundred dollars in custodial funds to cover the fees. I've had good luck with Equity Trust, but then again, when you're using an IRA LLC, your involvement with the custodian is pretty limited. Once a year, I either directly deposit my annual contribution with them or do a transfer from another IRA (Roth conversion) and direct them to fund my LLC. And once a year I send them an LLC valuation.

The custodian firms are pretty opaque.  Who knows who is running them, etc.?

@Dmitriy Fomichenko 

Thanks for posting that article.  Very informative as so many of your posts are.

Nice.. Too bad I don't plan on having a job again.