All Forum Posts by: Samantha M.

J Scott Thanks. The next question I have is if they already agreed to give the realtor 3% how does that work? For instance its listed at 60k and I might get it for 40k. Would I give the realtor 3% at my contract price or 3% of the listed price: (contract)40k = 1,200 3% of (listed)60k = 1,800

Jon Klaus House is worth 120, they are listing it at 60k. But it needs a TON of work. Major foundation, HVAC (internal & external), cosmetics throughout and many other things. Well over 30k in work. House is 3/2/2 1550 sq ft.

I am looking at a home right now that I intend to wholesale. The owner just signed a listing agreement just earlier last week. However, they are very motivated and willing to accept under list price.

They are asking for 60k, and they are willing to take 40k for it. If I make an offer I have an addendum that states all offers must be presented through your realtor if you have a valid listing agreement.

If I were to get it under contract can I still get an option period on it and such even if the property is listed? I figure as long as the realtor still gets there 3% it doesnt matter one way or another.

Thanks

We are looking at a house we might be putting an offer in on. The problem is there is a storage shed in the back that will definitely need to destroyed. What would you budget to demo a standard storage shed + haul off the trash? We are in DFW if that helps anyone.

Terry P. Why would you do that? The good wholesalers spend alot of time and money marketing every month. They have to deal with numerous junk calls before they even get decent leads to schedule appointments with. Then out of those that they make appointments with only a few will likely successfully NEGOTIATE (do you have this skill?) to get under contract. I would know since I am trying to wholesale a bit on the side as well, and its tough!

We had a REI investor who thought about cutting out the wholesaler here in DFW. He picked the wrong guy however, and this guy is incredibly prominent in the DFW area. After he tried to do that he pretty much got black listed, and pretty much no one at our local REI events or otherwise will work with him. Real Estate is a small world afterall, word travels quickly.

Some of my best deals have come from wholesalers. Why would I want to jeopardize my name and countless of other relationships that bring me deals just to save 5-8k. As long as I come in 70% ARV or better, I don't care what the wholesaler makes whether its 1k or 10k. Your post comes across as incredibly shady.

Good wholesalers add an incredible amount of value and they have helped me in my business. Its as shady as shady gets trying to cut them out of a deal.

Ali Boone

"the house goes completely bunk, you only lose your credit score, not a huge lump of cash. The place you got the money from loses the money"

I don't use hard money, but what about the deficiency statements when you take out a loan on an investment property. Aren't there typically deficiency statements that state the lender can come back after you for any difference in the amount owed?

Feel free anyone else that wants to chime in.

@RobbK I think Dave Ramsey himself went broke from being over leveraged!

Keith Ghion

Sure, lets go back to my example. In the example we executed the contract on 4/11/2013 with the seller with the closing date set two weeks out on 4/25/2013. And your option period is 7 days and expires 4/18/2013.

When you find a buyer, in your assignment of contract you state the buyer must close ON or BEFORE (before if the seller is ok with it) 4/18/2013. You set that is the last possible date to close because that is the last day of your option. If you try and wholesale it outside of the option period, and your end buyer drops out, you are going to be technically in default as well.

If its a good deal you should have no problem selling it in 2 days if you have an established buyers list, maybe 3-4 if your brand new but have an actual deal.

Was that clear I hope?

James Hiddle I use the standard P&S contract. It has a paragraph for a termination option. paragraph 23 for TREC 1-4 here in texas.

Andy B. Interesting, thanks for sharing. I assume the seller needs to initial out in the margins as well where you strike out specific performance?

Andy B. you can do that? Also how do you remove it, do you just include a line in 11. special provisions removing specific performance?

What do you typically recommend down as earnest money 1% of sales price?

Ive never met a buyer who has had a problem with an option Bill. Just be honest and respectful of others, if the shoe was on the other foot you would want to know what was really going on too. I tell them if I am the buyer or if If one of my investor colleagues is going to take title to the property.

Just by being honest, ive found it helps separate me from the crowd, people always appreciate it and they don't care if I am getting an option or not because I am honest and here to help them.