All Forum Posts by: Sean Cole

Originally posted by @Jay Hinrichs:

@Sean Cole  or in other words the cream rises to the top  !!!... really up to the regulators to decide what they want to do..

My comments are in my way of thinking  just simple logic... why have a Real estate commission or industry if licenses are not required to bring parties together.

However as you say its really up to each individual to dial in their moral compass.

I close a lot of deals that some wholesalers are tagged into.. I don't know them they don't know me .. I am just the funding source... The bigger one's that I do know like and Altura in Orlando were I probably bought close to 10 million dollars worth of deals from them.. they know me I know them.

and as a cash buyer you can imagine the amount of direct mail I get .. and phone calls etc.. most of it generic and exactly like the last guys post card simply because that's what they are taught the few times I acutally called them.. I could tell they were knew reading form a script.. so its those that have no real training that can foul up a seller pretty good.. and that is what those of us in the industry and are licensed do not like to see

My cynical take (even as a licensed agent) is that the Commission exists to protect the NAR and MLS from extinction more than anything else. I refuse to donate to RPAC or whatever they call it (our lobbying arm) because I think that most of their priorities result from self-interest of REALTORS rather than abiding by our Cannon of Ethics, which requires us to look out for the public above our self-interests.

I agree with your take about inexperienced folks fouling it up, but I work with way too many long time real estate agents who foul things up because of lack of knowledge or integrity.  I'm not saying that I have a better idea than the current system - just that the current system isn't perfect or altruistic.

@Jay Hinrichs that's funny!  I suppose it's just the nature of the site with all of the new people that find the site and ask the same sort of questions that we've all seen, along with the same folks being active and/or having keyword searches set up.  I'm beginning to get a complex, though.  Probably not all that different than how ambulance chasing attorneys, er personal injury attorneys feel.

Remember kids, rarely using the words "all", "none", "always", and "never" is a good idea.  So few things in life are that easily categorized.

To the topic at hand, I'll speak to my experience in Ohio, which is decidedly unfriendly to wholesalers/wholesaling.  The biggest issue that gets people in trouble here is advertising.  If your buyer's list is small enough or you know it well enough to only market via voice communication, you can probably operate with impunity in the State.  If you send out mass emails or post things on (pick your favorite website) with full property details, you'll get really familiar with the Division of Real Estate and not in a good way.

There are ways to advertise without running afoul of the folks in Columbus, some of which have been shared on BP in the past.  I won't share the other tips I've learned, as it cost me a ton of time and headaches to figure out and it's one of the only barriers to entry in my chosen line of work.  It can be done, though.

Generally speaking, I'd counsel everyone to remember the truism "If you lie with dogs, you're bound to get fleas."  Operate with integrity and surround yourself with people who do the same, and things will have a tendency to work out in your favor.  "The arc of the moral universe is long, but it bends toward justice."  Don't try to get one over on anyone.  Be a good person.  Be the type of businessperson that you'd want to do business with.  Don't sit on BiggerPockets lumping ALL of anyone into any categories.  Just because you don't agree with their chosen line of work doesn't make you any more right than they are.  Say something nice about someone you don't agree with.

Happy New Year (again)

Hey, another "All Wholesalers Are Crooks" thread that's trending on BP.  It wouldn't be a week on BP without one of these with the same cast of characters taking the same sides over and over.

Happy New Year.

@Simon Stahl, the other option is that the other bidders are incorrectly assuming different numbers than you or they have a different use in mind (perhaps owner-occupant without the same profit need).

Russell is exactly right and it's the same point I was making.  As you're demonstrating, it's a big difference psychologically to go up $20,000 by $1,000 chunks than to go in 1 chunk.  There's so many people on Hubzu that you're not going to steal a property so why try?

If the $170k bidder thinks that's a legit price to pay or would be willing to pay a bit more than that, they could very well make that bid to drive other people away. I've done it before. Makes people think you really want the property.

@Will Schryver take a look at www.ersop.com.  I used them many years ago to accomplish what you're talking about - using 401(k) funds to fund a business.  As @Brian Eastman pointed out, it's not a direct transfer. You'll create a C-Corp with a profit sharing plan, roll your 401(k) plan into the new profit sharing plan and then purchase shares of the C-Corp with those funds. You'll have to partner with the C-Corp in the LLC and make sure that it's (the profit sharing plan) is earning a fair return on their piece of the LLC.

You'll have ongoing maintenance fees and some extra work at tax time, but it's an option.  They do say, though, that it's really designed for people buying franchises (most of their customers are buying a Subway store or something similar).

I'd love to see what rehab is included for $15k.  Looks like north of $40k to me.

@Ryan Dossey, thanks for sharing.  That took guts.

Too many folks try to learn the business of residential real estate investing by being a wholesaler.  The problem is that they don't know how to analyze deals, among other things, that are prerequisites for being a successful wholesaler or investor.  

Most of my deals are purchased from banks and they'd consider themselves a lot smarter than me, so not all wholesaling/wholesalers are out there taking advantage of little old ladies.  There's nothing inherent about wholesaling that's akin to MLM or used car sales.  I rarely do much beyond showing the house and presenting the numbers.  If you have to push hard, you've got a bad deal.

Investors are going to require higher than 10% cash on cash in that part of town, unfortunately.