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#140218 - 05/11/07 11:53 AM
Wholesaling w/ License.
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Member
Registered: 03/31/06
Posts: 11
Loc: Atlanta
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Hello,
I've read a lot about investing, but what's been tough is in the details.
One question I have is as a licensed Realtor, if you assign a contract for a fee on a property being wholesaled, would the deal be done through the broker and the broker gets a portion of the fee, or is this done outside of the broker, and it's just something done on the side outside of the company holding the Realtors license.
Thanks!
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#140261 - 05/11/07 03:35 PM
Re: Wholesaling w/ License.
[Re: super realtor]
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Member
Registered: 03/31/06
Posts: 11
Loc: Atlanta
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The Ga real estate commission states that ANY real estate activity performed by a licensed real estate agent has to go through there principal broker assignments,bpo's,commercial whatever.What kind of money or cut the broker gets will depend on your independant contractor agreement you signed with your principal broker and the real estate commission has NOTHING to do with the broker fee.
You also need to disclose that you are an agent that's assigning the contract in this way the buyer or seller cannot claim later that you the agent knew more than them and took advantage of them.Disclose,Disclose,Disclose You are awesome Super Realtor. What about the situation Eric mentioned in his blog, where you actually personally enter a purchase agreement with the seller, then add your buyer onto the purchase agreement and you both buy the property. Then the buyer gives you a fee and you deed yourself off? I've seen so many ways that people are wholesaling I can't believe it. I'm trying to find the best ways to do so that is legal in Georgia.
Edited by NeoInATL (05/11/07 03:36 PM)
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#141530 - 05/18/07 10:33 AM
Re: Wholesaling w/ License.
[Re: shaunLA]
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Major Contributor
Registered: 06/23/04
Posts: 3370
Loc: Central Illinois
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Wholesaling is actually very easy to get into. The key is developing a pool of investor buyers that do rehab work. As long as you leave some profit in it for the rehabber then all is good.
I often find deals that I do not have the time and or manpower to do at the time I find the deal. I did one just the other day. I came across a property in an area of town I normally do not buy in unless I am looking to add another Section 8 property for rental. This was only a 2 bedroom so it was not worth it to me as I will buy nothing less than 3 bedroom units due to rent amounts. I do know a few investors that will buy this type of property.
I made a very low offer and it was accepted. Now I have the property under contract and called my fellow investors and had them view the property. I gave them my price and one wrote an offer on it. Here is how this deal will play out. I am closing on the 31st of this month. I will close and take title in a Land Trust. Minutes after that I will sign over my beneficial interest in the Trust to my fellow investor who will hand me a check that will net me $11,500. So you tell me Shaun is it worth it? Say I only net $5K is it still worth it for a few hours of time?
_________________________
Paul Oaks
Oaks Real Estate Group
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#141642 - 05/18/07 10:24 PM
Re: Wholesaling w/ License.
[Re: shaunLA]
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Major Contributor
Registered: 06/23/04
Posts: 3370
Loc: Central Illinois
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I rarely buy MLS properties. The deals are far better before the property is listed. Twice a month I run an I Buy Houses ad and generate a fair number of calls and I have several associates that find me deals.
_________________________
Paul Oaks
Oaks Real Estate Group
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#141877 - 05/20/07 03:16 PM
Re: Wholesaling w/ License.
[Re: Paul Oaks]
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Veteran Member
Registered: 06/24/06
Posts: 1074
Loc: Bucks County PA
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Wholesaling is actually very easy to get into. The key is developing a pool of investor buyers that do rehab work. As long as you leave some profit in it for the rehabber then all is good.
I often find deals that I do not have the time and or manpower to do at the time I find the deal. I did one just the other day. I came across a property in an area of town I normally do not buy in unless I am looking to add another Section 8 property for rental. This was only a 2 bedroom so it was not worth it to me as I will buy nothing less than 3 bedroom units due to rent amounts. I do know a few investors that will buy this type of property.
I made a very low offer and it was accepted. Now I have the property under contract and called my fellow investors and had them view the property. I gave them my price and one wrote an offer on it. Here is how this deal will play out. I am closing on the 31st of this month. I will close and take title in a Land Trust. Minutes after that I will sign over my beneficial interest in the Trust to my fellow investor who will hand me a check that will net me $11,500. So you tell me Shaun is it worth it? Say I only net $5K is it still worth it for a few hours of time? When one of the investors writes an offer on a property that is under contract, are you listed as the "seller" on the offer the investor gives you? Do you use your standard RE forms for this? Now, what happens if none of the investors are interested?
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#141949 - 05/20/07 11:02 PM
Re: Wholesaling w/ License.
[Re: JoeyBagadonuts]
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Major Contributor
Registered: 06/23/04
Posts: 3370
Loc: Central Illinois
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Joseph,
When I make an offer on a property I always include the right to assign my contract to another party before closing.
I do not make offers on properties I am not prepared to buy. I have close to 100 investors in my book so I can always find someone to wholesale it to should that be my goal. I always know what my exit strategies will be before I make the offer.
_________________________
Paul Oaks
Oaks Real Estate Group
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#142279 - 05/22/07 01:55 PM
Re: Wholesaling w/ License.
[Re: Paul Oaks]
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Member
Registered: 03/31/06
Posts: 11
Loc: Atlanta
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Wholesaling is actually very easy to get into. The key is developing a pool of investor buyers that do rehab work. As long as you leave some profit in it for the rehabber then all is good.
I often find deals that I do not have the time and or manpower to do at the time I find the deal. I did one just the other day. I came across a property in an area of town I normally do not buy in unless I am looking to add another Section 8 property for rental. This was only a 2 bedroom so it was not worth it to me as I will buy nothing less than 3 bedroom units due to rent amounts. I do know a few investors that will buy this type of property.
I made a very low offer and it was accepted. Now I have the property under contract and called my fellow investors and had them view the property. I gave them my price and one wrote an offer on it. Here is how this deal will play out. I am closing on the 31st of this month. I will close and take title in a Land Trust. Minutes after that I will sign over my beneficial interest in the Trust to my fellow investor who will hand me a check that will net me $11,500. So you tell me Shaun is it worth it? Say I only net $5K is it still worth it for a few hours of time? Hey Paul, I'm curious as to why you closed on the property instead of just assigning the contract for a fee to your investor? Thanks
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#150470 - 06/25/07 04:33 PM
Re: Wholesaling w/ License.
[Re: Paul Oaks]
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Member
Registered: 06/21/07
Posts: 126
Loc: Portland, OR
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I rarely buy MLS properties. The deals are far better before the property is listed. Twice a month I run an I Buy Houses ad and generate a fair number of calls and I have several associates that find me deals. Where do you run your ad? Any tips on what you've done to get more leads off your ad? (ad size, ad location, type of paper you print it in, what time of the month you run it, etc) - Peter
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#150519 - 06/25/07 08:09 PM
Re: Wholesaling w/ License.
[Re: agentpeter]
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Money Mover
Member
Registered: 03/10/05
Posts: 459
Loc: Irvine, CA
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Paul,
This is an interesting thread... can you explain the different creative financing strategies that you often use and why?
Thanks,
_________________________
Sean Pham
Phamport, Inc.
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#152346 - 07/02/07 04:24 PM
Re: Wholesaling w/ License.
[Re: Promise Land]
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Veteran Member
Registered: 09/02/04
Posts: 992
Loc: dev
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when using land trust as a vehicle to hold real property, this is very good because its private, and it doesnt trigger the due on sale clause and tax reassessments.
one way to do this is to have the seller accept the low ball offer then create their own land trust for $300-$400. the sellers will privately assign you beneficial interest in their trust then you find a rehab or retail buyer to purchase the property at a higher offer or appraised value. the end buyer will purchase the property conventionally from the trustee who should be holding title to real property. the property will need to be out of the trust and sold to the end buyer. trustee will distribute proceeds or profits to the beneficiaries of the trust.
the private assignment is very similar to wholesaling but it avoids the double closing/simultaneous closing. also when working with land trust, you're dealing with personal property. you don't need a real estate license to sell personal property.
its like selling shares of an LLC or a business entity. you dont need a license for this.
Edited by alvin (07/02/07 04:26 PM)
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#161657 - 08/08/07 11:48 PM
Re: Wholesaling w/ License.
[Re: alvin]
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Member
Registered: 05/21/07
Posts: 11
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Wholesaling is easy and I do it often. It is a very simple concept that can be difficult to get to the closing table. Just make sure you control as much of the transaction as possible. Insist that your cash buyers put down a large downpayment and if they arent cash buyers, they must use your lenders. Wholesaling is legal in every state btw.
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#197121 - 01/25/08 07:40 PM
Re: Wholesaling w/ License.
[Re: xburbx]
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Junior Member
Registered: 01/25/08
Posts: 4
Loc: Texas
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Wholesaling as an Agent...
I'm interested in learning about wholesaling and assignments as an Agent. Investing in real estate is the primary reason I became a licensed Realtor; however, I got off track and involved myself with the retail aspects of the business (career, family needs). I would like to know how to ethically and legally wholesale and assign R/E. Can anyone share the steps involved to wholesale and/or assign R/E to an investor... ethically and legally? I understand full disclosure and agree. Thanks in advance.
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#197857 - 01/28/08 04:57 PM
Re: Wholesaling w/ License.
[Re: Gregory]
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Veteran Member
Registered: 09/02/04
Posts: 992
Loc: dev
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its either you're an agent or a principal investor.
either your broker's company is going on the purchase contract or yours alone.
also make sure that the seller you're lowballing is aware how much their home is really worth, otherwise you may get in trouble for not disclosing.
just figure out which hat you're wearing when making an offer.
personally i make full price offer with terms, just as long as they're willing to do some sort of owner financing, ill make the offer as a principal without my broker's company name on the contract. what other agent out there is making full price offers anyways? i create my terms with the sellers, acquire an interest and resell my interest on higher terms. its called arbitrage. banks love to use it with savings and credit cards. why cant we by leveraging real estate?
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#197860 - 01/28/08 05:10 PM
Re: Wholesaling w/ License.
[Re: alvin]
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Veteran Member
Registered: 09/02/04
Posts: 992
Loc: dev
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i prefer to do it paul's way by using a land trust. its a bit more advanced but here are the technicals.
find a seller with a large amount of equity whether its distressed or a fire sale
underlying loan balance is $200k
low ball offer accepted $200k
after repair value is $350k
grant/warranty deed title to a 3rd party trustee or yourself
real property is transferred into the trust
investor has 100% beneficial interest(personal property) of the trust
trustee has 100% equitable title and legal title(real property)
find a rehabber to get private money or conventional financing
sell or assign 100% of beneficial interest for $210k
investor gets $10k profit
so now the rehabber has beneficial interest and can resell it at $350k after fixing it up
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#199798 - 02/04/08 04:03 PM
Re: Wholesaling w/ License.
[Re: alvin]
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Member
Registered: 03/18/07
Posts: 359
Loc: Philadelphia, PA, USA
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its either you're an agent or a principal investor. In PA you can be an agent AND an investor, as long as you disclose it.
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#199800 - 02/04/08 04:05 PM
Re: Wholesaling w/ License.
[Re: agentpeter]
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Major Contributor
Registered: 06/23/04
Posts: 3370
Loc: Central Illinois
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I have gotten the best results from the ad in the community newspapers and I also use the Bandit signs. I rarely buy MLS properties. The deals are far better before the property is listed. Twice a month I run an I Buy Houses ad and generate a fair number of calls and I have several associates that find me deals. Where do you run your ad? Any tips on what you've done to get more leads off your ad? (ad size, ad location, type of paper you print it in, what time of the month you run it, etc) - Peter
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#279500 - 03/05/09 02:17 AM
Re: Wholesaling w/ License.
[Re: Paul Oaks]
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Junior Member
Registered: 03/03/09
Posts: 3
Loc: los angeles
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For properties in California, is it best to go through an attorney to set up land trust or is there an agency of some sort (ie escrow company) that handles?
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#279973 - 03/07/09 04:06 PM
Re: Wholesaling w/ License.
[Re: gambaru1]
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Member
Registered: 02/14/07
Posts: 24
Loc: Portland, Oregon
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As long as you disclose that you are a licensed agent, you will be ok.
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