All Forum Posts by: Robert Leonard

@Jimmy S. I use an addendum to the original lease that changes the end date for an additional year if that's the only thing that changes. If I increase the rent or need to make any updates to my rental agreement (lease) with savvy clauses I might learn on BP, (after my attorney's approval) then I do a whole new lease.

Hey Todd,

Welcome to BP! Glad to see you jump on here! Great place to network and learn. See you around.

Rob

@Taylor Jennings it's about more than just what's admissible in court - it's about what can land you in court. It's about privacy laws. That's why the big companies always inform you that you "may be on a recorded line." If you inform people, it's not a problem. It's when you "secretly" record them, they may say things that they wouldn't if they knew they were being recorded. At least that's my best guess at why they have an "expectation of privacy" and that their conversation with you or your VA won't be replayed to anyone else.

Imagine if someone you record says some really crazy things and the call becomes a classic that somehow ends up posted on the Internet. The only thing the person who made the call could do is get a lawyer and go after you for defamation of character, possibly illegally recording their call and whatever else they come up with? I'm not trying to say you should avoid anything crazy that might possibly happen, but this is one that has a legal component that you need to be sure about to steer clear of legal troubles.

[In the voice of Kim Jong-il character from Team America juvenile comedy movie.]

You one sneaky devil @Taylor Jennings!

[End of attempt to make a joke.]

Make sure it's legal to record phone calls without notice in the state you are doing business (including all states you may call or get calls from). People can be very "sensitive" about being recorded and you (your business) don't want to end up on the wrong side of a news story or worldwide (Internet) negative chatter about violating people's privacy.

@Gary Threadgill

@Gary Threadgill

@Gary Threadgill

@Larry Hill I'll give you a scenario that might help make it clear for you.

THE ACCIDENTAL WHOLESALE

Lets say, while you are sitting waiting for an oil change, someone told you about a house they wanted to sell at a great price. And you've been wanting to get started in real estate investing, so you know it's a no brainer of a great deal! Then you went and took a look at it and it was in perfect condition, so you agreed on the price and when you would close the deal on a written contract!

The day after you agreed to the deal, you ran in to Bob, the real estate investor at the café and you told him about the great deal you just agreed to. Bob says, I'll give you $10k more than that right now. Wow, you decide that's the fastest 10k I've ever had a chance to make! So you agree on an assignment contract to "assign" Bob your contract for an assignment fee of 10k and he buys the property for the price you originally agreed to pay. That's totally legal most places. (Check with an attorney in your state.)

Sometimes for different reasons, you would have to do a "double closing" where you actually buy, like your agreement stated, then sell to Bob the investor. That's just another way of accomplishing the same thing that may involve a little more closing costs.

Sometimes when new investors talk about wholesaling they miss steps and talk about making a "commission" and describe it in a way that would be illegal. The key that I mentioned in the scenario is that you had the property under contract to purchase it. You weren't just trying to "connect a buyer and seller for a fee."

Is that about as clear as mud?

@Jeffrey Magenes I think you need to talk to a CA attorney about the JV agreement you want for this type of arrangement if it's legal?

Generally what you are talking about is you offering property management to your friend. That requires licensing when done for others in some states, so you need to check on that?

If you are providing any portion of the down payment, that will need to be disclosed on the credit partners loan application.

You would not be on title to the property if it's an FHA loan. The loan will be in the name of a person, not an entity.

Just a little food for thought.

@DJ Porter in simplest terms, private lenders (PML) are your friends, family, and personal acquaintances who will loan to you at 12% or lower. You don't want to go straight to 12% when you talk to them, most will be happy with much less than that.

Hard money lenders (HML) will usually charge 12% or more. As you've seen, the numbers can be all over the place. None of this is written in stone. You can expect to pay the highest rates from HMLs on your first deals until you establish a track record. Not everybody will be successful when they first try this and you have to understand that you are asking them to take a pretty significant risk to invest with you without any experience.

The best HMLs to deal with are the ones who will only fund your deal with a high probability of success. So don't be upset if you get denied on a thin profit margin deal. They are always taking the risk that they get the property back, but you definitely want to only use HMLs when an adequate profit margin exists.

@Jon Klaus

@Jon Klaus

@Kevin Parnella

@Kevin Parnella

@Kevin Parnella

@Kevin Parnella

@Kevin Parnella