All Forum Posts by: Brian Gibbons

Wow @Peter John K

You sound like an entrepreneur or opportunist or what

This whole post was talking about looking at the current laws in your state and seeing if what you're doing is legal or illegal starting with Ohio and branching off into Florida and California

If you don't take title and your marketing it, chances are in Arizona you may be breaking some kind of laws that may or may not be enforced diligently

Arizona's got a lot of older people retired and all it takes is a complaint from a licensed broker to the real estate commission of Arizona to anyone in Arizona that perhaps is doing unlicensed brokerage activity

I don't think Real estate lawyers  really care too much what you're doing re being unlicensed because they'll get their fee

I don't think title companies will care too much because they'll get their closing fee and they don't care if your licensed or not

The wild wild West of Real Estate Investing used to be to be able to take anybody and write out a contract on the roof of the car and do ever you want

With credit being so tight right now and listings so hard to get and buyers so hard to get financed through the Dodd Frank and CFPB regulations, Real estate brokers I don't think mind calling the commission and saying hey this guy is doing brokerage activities.

Is it fair? Well if you're licensed agent and you're doing a wholesale deal at 100,000 and it needs 20,000 work and you buy it for 60,000 as a principal, is it fair?

I think so I think it's great. Assign  it too.

What isn't  talked about the are the costs to sell in the costs to buy

As a principal I'm going to put in a cash offer it's well below 90% of appraisal because it costs to sell generally 10% to  do so with an agent.

So breakeven to me is $.88-$.90 on the dollar no profit

There's so many broke people here on bigger pockets that are looking to quit their breakeven job or going backwards job and jump in to get rich quick wholesaling

I think if you just got licensed and went through some kind of reasonably good training and I'm partial to Keller Williams training, and reading all the books like Gary Keller's millionaire real estate investor, millionaire real estate agent, and shift, you would be much better served starting your career in real estate

Wholesaling only is not a good plan to start when you're broke

"The rule of seven" with marketing on wholesaling:  it takes seven times to hit a mailing list to get a reasonably good lead in Wholesaling; every week I see in marketing section of BiggerPockets: I sent out over 60 letters last week and I do you get one phone call!

@Dev Horn have some of the best videos on the planet for wholesaling marketing direct mail, search "YouTube we buy houses marketing"

I think a better plan is to find 

A B areas with sellers they can't sell for some reason and 

go talk to them about solving their problem as a licensed agent

Show them that they could solve their problem with creative financing generally with either a lease option assignment or a subject to or wraparound mortgage

So if you want to flip contracts and not be licensed in Arizona just keep doing it, just keep doing it, and maybe just maybe you'll get a cease-and-desist letter from the department of real estate In Arizona, I may be totally wrong here but I doubt it :)

Renée I highly recommend you take a look at expired listings as many of my students have been successful getting started doing lease-option assignments to expired listings

They want to sell and usually they don't have a lot of equity so a rent to own solution sometimes works well for them

Typical deal is hundred thousand dollar house 95,000 loan

Make 3 to 5% on a lease option assignment

 Brian you seem to be very interested in treating people very fairly and really helping them and that's what I am all about

Many wholesalers who have been taught " to step on people to make money "contact me because they want to help Sellers fix problems and develop a reputation for being fair and honest

I had one of my students that was a wholesaler for five years and really hated it because he had to keep going back to the seller to push the price down because the cash buyer wanted to cheaper price

I look at the best way to get started in real estate is to get your license and solve problems for sellers and get testimonials on your website that you were honest and fair helping them solve their problem

My dad was a poor Irish second-generation in Boston and had no money when he was a kid and he became an orthopedic surgeon

He told me "do no harm" when I was a boy

I think to me "the wholesaling fever pitch seminar racket" is "stepping on people to make money"

An alternative to the "wholesaling only" model is to be able to "help sellers sell on terms verses for cash"

Ron LeGrand in Tampa has said to his students get licensed because of the brokering laws in FL

I really feel that people should just do the right thing in the beginning, learn every legal way to help people with real estate, and you'll develop a reputation for being a great fair business person

if your licensed you can act as a principal and use creative techniques like subject to, lease-option assignment, wraparound mortgages, master lease options, master leases, whatever tool works for the situation

?Fitzgerald I have no idea what you mean by marketing but I don't think you can really market a property in the public space without owning it in some states

Now in Georgia they have looser regulations as far as being licensed in fact I really like Georgia because there's less regulations

I would study the real estate commission and what how they define agent activities and was exempt from needing a license

Your REIA and Georgia should be able to help you understand this

When people are marketing properties that they do not have title to that's generally a brokering activity 

@Curt Smith how would you basically talk to a newbie about what is brokering activity and what is not under the Georgia real estate commission and work in real estate investors do without worrying about getting a real estate salespersons license?

This is my opinion on Georgia and why it's even worth getting a license

Getting a license give you respect from a probate attorney, from a divorce attorney, from other real estate agents, especially if you're problem solver and using creative finance

@Jay Hinrichs

I might start at Thread called 

Are wholesalers unscrupulous bastards?

Case in point heres a story

It was $200,000 house but it was grandma's house

they're in their 70s and it's free and clear and they really needed updating in their kitchen and a little bit of fixtures in the bathroom

they kept it in meticulous shape

It really had a nice layout but it was kind of small you know built in the 1950s so the closet space wasn't great but they had a nice big attic and a good size garage

I always try to have a fiduciary duty to the seller and help that seller get a good solution

The house was listed with an agent and because it was needing updating it didn't sell

So I came in and talked with the sellers and basically talked about all their options 

we could rent it out

try listing it again at a reduced price to maybe 180 or so 

but still a lot of buyers don't have vision to be able to say "oh if I spend 10,0000 that it will fix the problem" they just don't have the vision

But what I need to hit home with them is if they don't fix the problem so then they need to look at another possible solution which was selling it to an investor flipper

This is not a major rehab, this is a minor rehab where in 30 days you can tear out the kitchen, put a new one in and update some bathroom fixtures for 10,000 and now you can compete with all the other $200,000 houses for sale

Just for giggles I have them call "we buy houses people" and they came in and did 65% ARV minus the 10,000 and offer them 120,000 for the house

And I explain to them that the investors have two sets of closing costs and they have to make a profit so that's why the number so low

And I asked the elderly couple what if we did a joint venture and I brought my money and fixed it and then resold the property and they would make a lot more for working with me

Granted because it was free and clear I bought it on a private mortgage with a joint venture agreement which basically said that 

they would give me a private mortgage with no payments for six months 

I would do the work and then I would resell it with an agent list it at 98% of comps, 

advertising brand-new kitchen with full one-year warranty

Bottom line here it cost about 10% to sell with a sales price of 200,000 and then 

I use private money for the 10,000 in kitchen and then 

I charge the $10,000 JV fee so they netted about 170,000 on the house

How do you like to make 10 grand ethically and honestly and help people get a good result? 

Over 30% of the houses are free and clear and helping elderly sellers update the house using private money can be a win-win for all concerned

If you're asking yourself how do I get private money well learn about self-directed IRAs and how they work and how custodians help IRA holders create a brand-new IRA and use it as a private loan

http://store.papersourceonline.com

Pretty good there @Jonathan Makovsky

Don't be afraid of communicating with the bank and using your own attorney for this communication because when you buy it subject to, you have a due on sale clause that could be called due, not that it's going to be called due.

It wouldn't hurt for you to be licensed in the state of Conn but act as a business principal and not "acting agent for"

A Ohio Licensed agent that is creative is not a friggin wholesaler, he is a transaction engineer

You could never get in trouble in Ohio if you're licensed and you give full disclosure that you're acting as a principal in a transaction and you're not "acting agent for", and you are in a "for profit transaction"

I swear to God when I hear the word wholesaler I think of some trickster that "who knows what he knows" and whether not he actually has title

An option to purchase agreement is not title

A sale and purchase agreement and/or assigns of the top is not title

If you buy it subject to or on a wrap you have title and you can quickly on sell it

Tell the truth and get licensed, make some money

A thousand bucks a day for 30 days is $30,000 do the math

@Ben Leybovich

People need to live somewhere Ben and credit is tight and I don't think it's going to loosen up for quite a while so I think housing is going to stay hot that's my opinion

I always want to buy a good school districts and safe neighborhoods I don't want poor neighborhoods and high crime and that schools just don't want it