All Forum Posts by: Scott Johnson

Ideally, you'd want to have signed leases from each tenant, but the strategy part of it is that you also wanna make sure that you don't run people away while you are either increasing rent or preparing any units that are currently vacant.

I would probably take a step-by-step approach. As long as you are profitable, as is with the current tenant, maybe once every month or every other month approach a tenant that is on month to month and let them know that you'll need them to sign a lease. Be prepared for some people to let you know they're leaving and just make sure that they or you give the appropriate notice based on state laws.

No idea about Texas, but I normally pay one of the brokers in my firm 50 bucks to do the open house. Are you the only broker in your firm?

I would recommend sitting down with an attorney so they can outline what the process will be like and their rent for closing the selling and what documents they'll need from you (if any because they can draft them).

if you decide to sell to a residential buyer, make sure you're confirming that they are able to finance it or that they have cash to purchase it. You can also look into the builder to make sure that they are reputable.

Also, look up some videos on selling a house for sale by owner in your state. You don't have to use a broker to sell your house, but they do these transactions every day and can make the process a lot less stressful and streamlined.

After you confirm the buyers financing, have the attorney draft the agreement to purchase and get the process rolling. Otherwise, hire a broker 😄

Unless you still want to buy the property, the seller is in breech for not closing because you are full ready to close but they haven't or refused to sign anything.

In NC if the seller breaches, the buyer can sue for specific performance. Had a listing go under because the seller had signed an offer to purchase and just walked away from closing without signing. 

But if you still want it, then boom. If not, yea. You're SOL. I paid 2,200'on a survey and inspections of a wholesale and another heir blocked the deal 🤷🏻 You win some you lose some.

What's uuuuuup, Latoya! Read the NC general statute on wholesaling and ask frequent questions to the real estate commission. Even give them a call to ask about wholesaling as a broker.

That'll get your education started off right! Let me know if you have questions!

Each upgrade is depreciated separately, and each has a monetary value and depreciation schedule.

So to keep it simple, use your books 😉 

Accounts/Sub accounts: Address (or property identifier) >> Name of update >> Depreciation account for that upgrade.

I am not a CPA and am not providing legal advice. Just a thought.

Let me be more specific. I didn't have enough space in the Title:

Novations where the investor uses a Limited Listing that puts them as the primary contact for scheduling showings, receiving/accepting offers and negotiating are brokering without a license.

Novations where the investor actually hires a real estate broker to handle the aforementioned for the seller are not included. As far as I'm concerned, they're a great way to wholesale in states where they've outlawed wholesaling. 

And yes, I'm a broker. I've got something to gain. I'm Novation Listing Friendly. Deal with it.

Correct me where I'm wrong but Novations can be executed by either a Power of Attorney being given to the investor or by an investor just doing the paperwork, both being done after they secure their interest with an option contract (unless there's some other creative thing I haven't heard about yet). With the Power of Attorney, there may not be an issue. 

All I can say is that when an investor is the person who's doing the job that a real estate broker is commissioned to do, per state law, that's brokering without a license, which is no bueno and shouldn't be allowed. 

If novations are done using a broker, it's straight up CYA. Work their commission into your numbers, especially if they understand novations. 

I would learn a little bit more about contract law in your state. In North Carolina, any contract is a sign unless it expressly states that it's not for whatever reason.

also, don't be afraid to pay the $300 for an attorney to sit down with you and answer your questions about what you're trying to do.

@Tyler Garza  comparable sales. If a property of similar bedrooms, bathrooms, type, and square footage has sold within the last six months, that is a comparable sale. Use three of those to give you an idea of what your property will sell for.

Sometimes, I'll do a quick and dirty comparable analysis by averaging the value values from Zillow, Realtor, and Redfin. Just keep in mind that it's always better to run a comparable analysis.