All Forum Posts by: Ray A Delfi

@Patrick Bavaro your selling price (130k) is 76% of the ARV does it need repairs? You'll have a hard time off loading the property to another investor with these numbers. Most investors follow the 70% rule tell us more about the deal.

Kudos on going to the research on how to contract the deal and they also provided you with the proper document they needed to close. A lot of people don’t do that and it’s just a simple phone call or visit to the title company or realestate attorney’s office.

@John Thedford are you a licensed broker/realtor? If feel this could quickly turn into another rant against wholesalers, maybe you can be more specific with your response to help out instead of just quickly hijacking a post and shutting them down.

@corey Huston Wholesaling is legal, but this myth persists because a lot of people wholesale illegally. There is a legal and illegal way to do almost everything.

Co-wholesaling is where two investors work together to do a joint-venture wholesale deal. An illegal co-wholesaling deal would be where one investor has the deal and the second investor brings the buyer to the deal, but does not have their real estate license. It is illegal to practice real estate without a license.

Unfortunately, because so many people practice wholesaling illegally it gives wholesalers a bad reputation. If it is done right, and you have an established bilateral contract between you and the seller that stipulates that you are acquiring equitable interest and also need to prove that you have intent to purchase. Then once you have the house under contract with the first seller, you can assign the contract to another investor if you don’t plan on taking the property yourself. It is illegal if you bring the buyer first, do not have a contract in place with the seller, or cannot prove intent to purchase. I’m not in anyway providing you legal advice but to encourage you to do your research. If you are worried about the legality of wholesaling houses you can get your real estate license or you can speak to a realestate attorney and discuss your options if you do find a good deal as a “Sale by owner” or off market property and the property way to assign a contract.

@Tyler Gibson if this was a scam, It would be good to share some of the details to prevent anyone reading this avoid the same situation. Can you share how you came across this deal, did someone email you, call you, or did you call them? Did they provide an address to were to send the check or have you come in to sign the EMA? Did you look up that address to see if it was a legitimate business? 

@Ben Nelson this is a great topic, I once had a clean out guy very cheap and no job too dirty. For $350 he cleaned out an apartment of an evicted hoarder, literally had to wear a full body suit and a shovel. My property manager informed me that he was a a registered sex offender after a few years of doing business with him. I did not know the crime but was lucky enough that there were no kids in the building that I own. However, it did cause me to be more discriminative. I read an article that noted the risks of knowing and not knowing were could potentially leave you liable if the person commits a crime in your property, however this would be the case with anyone on your property sex offender or not. They could have be a felon, history of misdemeanors or a pyromaniac. I read an article that basically summed up That landlords should consider only whether the applicant poses a current threat to cotenants, guests, and employees. That analysis takes into consideration the age of the conviction, its nature, and any relevant intervening facts. For example, a recent rape conviction perpetrated on a neighbor's child would arguably be more relevant to a landlord than a 20-year-old conviction for statutory rape followed by a crime-free life. There was guidance published in the "HUD Guidance Memo on Landlords' Use of Arrest and Conviction Records."

@Jim Witten I never heard of that, but did you ask the title company for a sample or a template?

@Josh C. Good point, I should clarify what I meant, thank you for catching that. If you have a specific task, short term then 1099 then, for example if you need VA and you subcontract to a VA company you would only need to 1099 then. If you hire someone off the street then yes you should W2 them. Hopefully that makes more sense.

@Danni Catambay that’s basically it in a nut shell, you can create it into your own thing. The key is to be honest and be awesome in sales or hire people who are...lol.

Update: the company is http://investherfunding.com/

Turns out they aren't a scam but no Different than One Main Lending, Lending Tree or any of those company's that blast out your information to several banks with their fingers crossed. It's just a middle man with a shinny "REI" facade.

@Ashley Renders sounds to me that if the move in date is a month away and they haven’t already moved in, you need the money right away and is not a good sign. The lease is an agreement and no money should be exchanged unless both agree to the agreement. The deposit isn’t yours to spend and should go into an interest bearing account. I could be wrong about the account, but verify that. Also verify what you are allowed to take as a deposit or security as the laws have changed to the tenants benefit.

If you don’t mind me asking did you not have enough in reserves to handle the transitioning of tenants. You should do what ever it takes not to spend your reserves to pay personal debts or the mortgage. Your property should be treated as a business and keep it separate (Church and state) take out a business line of credit before putting your hand in the cookie jar. Forgive me if I took your question out of context and the excessive amount of metaphors, it just seems that the money that is meant for a deposit is already spent, figuratively speaking.

@Brian Benton damn... your killing it just saw three of your deals! Awesome man, how does it make you feel? What are your goals and plan for the profit you have made so far (over 20k from what I saw)