All Forum Posts by: Derek M.

Hello,

Any investors in Tennessee, or more specifically, Trenton, TN area care to reach out to me?  I'm an investor in Texas but have a potential deal on a house and some land (same deal) in TN.  I'm looking for someone who is actively doing deals, trustworthy, knows the area, knows the local closing process, etc.  

Thanks!

What ever happened to the mold house? I just bought one that had mold in one of the rooms from a roof leak.

...and assigning - besides being pretty easy and that you can receive your money up front - it's less of a cost than paying closings costs, using transactional funding, etc., as would be necessary with most double closings. Obviously, it's worth it to pay a little extra to DC if you're getting a much higher profit, yet want/need to keep your numbers private.

@Jerry Kisasonak

Yeah, in TX most won't do dry funding. If you ask 10 places, 5 will say it's illegal, 4 will will have internal policies against it, and 1 will do it.... or something like that :)

Short of messing with contracts, since you know your buyer you can have him pay the wholesaler 2K less than they'll agree on... thus giving you the 2K. So if the wholesaler has the property under contract for 20K, and your buyer agrees to buy it from the wholesaler for 26K, once there is the initial verbal agreement your buyer can tell the wholesaler that he'll pay 24K on paper, since he'll be giving you 2K. Alternatively, you'd have to trust the wholesaler to receive the 6K and then turn around and give you the 2K when there is nothing in writing that he has to do it... so if your wholesaler already agreed to pay you 2K out of his fee then the money is just getting to you via the buyer instead of the wholesaler.

@Stephen R.

If I wholesale, I always want to get my assignment fee when I assign my contract (upfront). For instance, here's how I wholesaled a recent deal: I put under contract, did my lien search, had my buyer check it out, he agreed on my price, and I had a check the next day for my assignment fee of $5K. (nothing special about 5K, it was just how the numbers worked on this deal). I had the house wrapped up for about 7 days and was paid in full.

Once I assign the deal my control is gone, I'm out of the picture, and I want to get paid for my services. The fee is non-refundable unless the seller can't deliver clean title... which should never happen since I do the above mentioned title search as part of my due diligence. If they want to say they don't want to pay the full fee until closing, then I have two options. One is to go to my next buyer since I know it's a good deal, or I tell the current buyer that I agree to wait, but I'll ad an extra $2K to my fee. I'll also take a portion now as a down payment, and the rest will be in escrow with instructions that it's my non-refundable fee (short of the seller being unable to transfer title). It's just the give and take of negotiation.

A wholesaler needs the buyer as much as the buyer needs you (or they can market and do all the work themselves to find the deals). So as far as control goes, I don't need control since I get my fee up front. If my fee is about 12-15K or more then I'll do a double close with dry funding.

2 rehabs per month, with a few wholesale deals sprinkled in.

I've learned so much in 2013!! Having a good mentor is key!

Welcome!

The place you get the best deal.... ;)

Joel, @joel

Congrats!! Looking to buy more in Houston?