All Forum Posts by: Sierrah Fanth

Although the only risk of getting an option to buy on a property is having wasted time and a laugh from local investors, it is important to get comps on the property (due diligence comparing nearby sales and to see if it is a good investment).
In Minnesota, we have similar markets such as North Minneapolis. While one block of houses may be in popular demand, houses on the next block may be sitting with no offers for months.
This kind of investing does require a certain level of knowledge (ask me how i know :) )If you are completely unsure of how to go about seeing if its a deal or not & how to communicate with the seller, my opinion is that I would put together a bird-dog contract that says _____ will supply this lead to you, and if it becomes a deal, you will pay me 200$. (100-500 Dollars is the going Bird-dog rates around where I live.) And then seal the agreement with another more experienced investor, and if & when the deal closes, that investor will owe you the amount agreed upon.

Congrats to taking action!

Thank you Chris for the wealth of information!

I understand that you may not need it for liability reasons, although my lawyer and other investors I follow believe in using one to protect myself as a wholesaler. As far as REO's, I assign the LLC that holds the contract into a different name because banks do not allow you to assign the contracts.

When wholesaling a FSBO deal, you have an option agreement with the seller, which basically says that you have the right to purchase the property for an agreed upon amount.

What contract do you use for your end buyer? A purchase agreement, and a contract stating that you will sell the PA to them for a specified amount???

What contracts are required for A-B and B-C when you are selling the PA for a flat fee? (Not going to the closing table)

All opinions thoughts comments very appreciated! =)

To wholesale an REO, not only do you use an LLC to assign the contract, but you also use it to protect yourself legally in the transaction.

My question is should I also use an LLC to assign a FSBO deal?

Thanks!

Amongst the great deals that I have been finding,I sometimes find properties that have water seeping into the basement, and the cement walls seems to cave in a little bit. The past owners, or agents nail either sheetrock or wooden boards to cover up the wall. Sometimes I see this to an extreme where the whole lower length of the wall is caving in, and in some properties its not as bad.

I believe this is due to the water seeping in from the soil, and ineffective gutters and something to do with the sump pump?

My main question is what jobs are required to fix the wall and prevent water from seeping in. And what is the min and max amount that something like this could cost.

Thanks in advance!

I hear over and over again that working and doing RE can be done, as long as your efforts are focused. Best advice I ever got was Keep it super simple, spend most of your time finding buyers and sellers and connecting the 2.

I am a wholesaler. Whats important is that you are finding opportunities (great deals) and resources (buyers) and connecting them every.single.day. And also in addition to resources, you're managing your human capital such as your contractors and agents. I know a resource that you would find very helpful Google Tyrone Taylor Flip, he specializes in FSBO, and has many, many videos on youtube. Also Google Steph Davis Flip this wholesaler, although she primarily wholesales REOs she has many helpful videos as well. There are many, many details, don't get caught up in them.

I see now, Thank you both very much!

I'm an unlicensed Investor working under a business. If an unlicensed person brings me a buyer for my PA in a wholesale deal ,I can pay them a referral under their BIN or EIN.

However, If a licensed agent requests commission for bringing a buyer to a deal where an agent is already assigned in contract, and we are unwilling to negotiate commission, how can I legally pay her a referral fee for bringing in a buyer?

I am willing to pay a referral fee of 1000.00 Less than commission, yes, but a great deal for just bringing a buyer. An agent said she'd only make like 5 dollars after broker fees...why is she talking about broker fees when I would pay her a straight 1K? And how do I legally pay these fees to agents?