All Forum Posts by: Account Closed

@Nick James, I know this response is too old, and I'm not sure if anyone else responded with my answer. one other option you may have, is if you enter into this agreement based on the 2 bedroom voucher, sign a month to month lease, that should open the door up for you to place a 60day notice to increase the rent to the amount you wish. all while the reasonable accommodation is in place. That way, you are getting some rent, and you're helping the tenant. if the reasonable accommodation goes thru and is applied, and now the family has a 3 bdrm voucher, the family's share should be adjusted and Housing will pay the bigger share. Hope this helps.

Hi Bill,

Yes. This was on our HUD-1. Let me try to start from the beginning. Our "mentor", who also happens to be a contractor, and realtor, found this "deal" thru a "wholeseller". He was able to hook us up with a hard money lender, who financed the entire deal. The purchase, and rehab costs. If you see the attached buyers settlement, you can see the break down of fees.

Our concern is that our "mentor" may not be telling us the complete truth about these fees. Every time we ask, his response is "this amount is typical". This is our first go around with flipping, and are relying on him to give us the correct information. 

There was even an occasion when one of the previous buyers settlement indicated that 69k was due to our "mentor", and when we questioned why 69k was due directly to him, he went on to say that he was going to forward that payment to the wholeseller. When we questioned him more, he then stated he would have title remove it from his name, and place the "wholsellers" name.

At this point, the deal is done. We are now owners of this property, and we owe 100k to someone we don't know for a "referral fee" to this wholeseller. Is this normal, and what is the difference between "referral fee, assignment fee, and wholesale fee"?

Thank you Paul. Apparently we paid 100k as a "referral fee" to someone we didn't even know.  Our mentor started that this was typical out here in the Bay Area. This is our first flip,  and we put our trust into our mentor,  to guide us. 

I think our "mentor" might have "gotten over on us". Would anyone like to shed some light with typical wholeseller/assignment/referral fee? I have attached a copy of the final buyers statement, that included a fee to a person we have no clue about. And when asking our "mentor" about this wholeseller fee, he said this "is typical".