All Forum Posts by: Rick Pozos

Welcome @Kalifa Lettine, @Drew S. and all the other people interested in real estate in San Antonio, TX. THis is a great place to get some great information.

Two big groups that meet throughout the month: Alamo Investors Assn, San Antonio Real Estate Investor Assn. You can google them for specific info.  There are also a number of small groups that meet all around town.  I am also going to start a small group that meets the first Wednesday of the month, but still looking for a place to have it. Will let you know soon.

If you have any questions that need quick answers, you can always email, text or call me.

@Jay Hinrichs

 I have yet to see any state or federal law that states that it is illegal to contract a property and then at a later date sell your contract. If you can find it, I will retract my statement with full apology. As I have said many times, I am NOT an attorney.

I will agree that MANY wholesalers do what you said about "tie it up and then go to craigslist to sell it".  That is SOOOOO wrong.  I also hate when wholesalers do this. It makes sellers mad beyond belief.

I only contract a property when I know that it is a good deal. I am marketing all of the time, so when a deal comes to me and I already have a rehab or two going (I am not that big that I can do too many things at once) I am NOT going to walk away from making money. This is when I will make a couple of phone calls( I DO NOT use craigslist to wholesale properties) to sell that contract.

I am really sorry that some wholesalers do not perform. It is sad.  You have to know your market and you have to know 100% that you have a good deal that someone will be willing to purchase from you.  If you are not sure, do not get it under contract. 

@Dan Dwyer yes, if it is on MLS and you have a contract or an option and a contract the house is off the market. That is why Jay gets mad when you have a contract with no intentions of closing. It will be off the market for a week and he just lost all possibility of selling it for that week.

I am sorry for upsetting Jay. 

I usually do not work with Realtors though on the buying side, and it is because they are accustomed to working with only the seller and buyer in a transaction.  It is not common in their world to deal with assinments and wholesalers. Nothing bad about Realtors. I love Realtors.

It is NOT illegal anywhere!!

You have to be the buyer in the contract. After you have a contract, you can do whatever you want with the contract unless there is wording in the contract that legally prohibits you from assigning. 

If someone asks why I put "and/or assigns" after my name, I let them know that title will be taken in an LLC and I am not sure which one right now(complete truth, I dont know who will buy the contract from me yet), but it will not be in my name personally. I let them know that if there is any issue whatsoever, please have their attorney review the contract and call me if there are any questions. I NEVER, NEVER, NEVER say that I am going to wholesale the property, just that the title will be taken in the name of an LLC. Also, I never say that it is MY LLC, just that title will be taken in an LLC. Right after I have a contract I execute an assignment contract with the end buyer. Get that assignment to the title company so that they know what is going on.

I have to agree. If you want a realtor, pay the 5 or 6%. If you want to save the 6%, then sell it yourself on craigslist.

Pick one and go with it.

If the house is empty and it says they live there, ask the neighbors. Neighbors are usually key in finding the owners of vacant houses.

If it is a rental house, go to where they live and knock on the door.  I do this. In fact I just did this the other day. Nobody was home, but all 3 of the cars had for sale signs on them.  I called and found out he was going through a divorce. He had a code violation on the house I was calling about, but he is interested in selling because his ex-wife is on the deed also. Potential deal. 

Beautiful.

This is about as simple as it gets. One card is for buyers and one is for sellers. I am almost out of the buyer cards so everybody is getting seller cards when I meet them.

I agree, I would negotiate a better price and you handle it as the new owner or let them handle it with an attorney.  If anything goes wrong or they are not 100% satisfied, they are coming after you for liability.  Maybe you could do some research for them about attorneys who do evictions. I would never get in the middle of something that is already ongoing.  It could be that the elderly couple was doing something unfairly to the tenants. You never know.

If they really dont want to handle the situation, a better price should be had for solving their problems.

I am NOT a lawyer nor do I play one on TV, so here is my unofficial legal advice.

Wholesaling is legal. Always has been, always will be. Legal in all 50 states and territories. Legal all across the world.

When you contract the property, YOU ARE A PARTY TO THE TRANSACTION, not a broker. The next day, you change your mind and say, "I dont want this property after all.  I think my buddy Rick would like to buy it. Rick is willing to give me 5k for an assignment fee". You assign the property, Rick closes, no problem.

Everything is legit.

You just have to be a party on the contract. If you find Mr Seller and find Mr. Buyer, they contract the property and give you a fee for that, then there is a problem. That is brokering. That is what licensed real estate agents do. 

I (and so should you) put earnest money down, I sign a contract with the seller, if I assign to someone, there is no problem because I am a party in the transaction.