Co Wholesale closes this morning, $9600 to me.

Thanks Jim!!

Keep up the good work and take care

Julie

Congrats! Quick question as I am going to be co-wholesaling as well how did you determin your fee?

For us, it totally depends on the deal. We have no set fee amount, some deals have more margin than others.

Thanks,
Michael

Michael...not everyone has established buyers who will honor existing relationships. How would you suggest that someone protect themselves in a co-wholesale situation for the current transaction and transactions in the future with the buyer they provide.

Don't work with people you don't trust. Clear up front communication concerning your expectations is highly recommended along with full disclosure of all the deal details.

Some people feel safer using a non circumvent non disclosure contract. For me this is a symbol of distrust. I am not worried about people going behind my back. Even when I did not have a lot of deals I presented myself in a way that people did not want loose the relationship with me. (I was bigger than I really was) It's all in how you present yourself and how you communicate how no one goes around you.

Just how I have done it,

Michael

Way To Go Guys !!!
Thank You For Sharing Michael, You Guys are an Inspiration to us all.
Always Love Reading about your amazing Deals
I Always work hard at networking It is such an Important thing for us.
I Will be completing/Closing an assignment of contract Deal in a Couple of Days which I wholesaled to one of Good Cash Buyers,( This is a FSBO,Deal from my bandit Signs)Making $6,500 assignment fee on it, I priced it To make it a Win-Win For Everybody
Thank You Again,
Hope You Guys Are Having A Great Day,
Darren From Calif

Good job and congratulations! Now on to the next one!

Thanks,
Michael

Hello Michael and congratulations on yet another successful deal of yours!!!

Michael, I too live in Colorado and was hoping you'd be able to answer a couple questions I had about wholesaling here in CO...

Just yesterday I was told by an RE agent that basically doing wholesaling deals like this in CO is illegal unless you have a CO real estate license..??

Also, what do you do in a situation where a seller/bank requires some kind of earnest money toward the offer?? Is this where a person needs to have a little reserves..??

Thank you very much for all you do for everyone and for all of your success stories... They are all very motivational!!

I do not need a license to sell the CONTRACT!! As usual the agent has no clue.

I use my buyers money to cover my earnest money check. You have to have a good deal and buyers in place for this to work. Every offer I make I supply POF and a COPY of the earnest money check. The check in meaningless unless the offer is accepted. Then I usually have 48 hours to come up with a real check.

Michael

Hey Michael... So, what you're saying is it is legal to sell the contract?? what the RE agent is probably thinking is that I'm looking to close on the deal first then "wholesale" it... right??

Also, you said you use your buyers money for any earnest or "up-front" costs there may be.. This is what I figured, but a person would probably definitely need to have a good relationship with that cash buyer... right?? The POF and copy of the earnest money check.. again do these come from your cash buyers?? and in 48 hours when the check is due.. is that when you give the closing company the "REAL" check..??

Thanks for all of your help Michael..

If you close on it you can do whatever you want. You own the property. The agent does not understand what you are doing.

POF and a copy of the check come from me. It can come from your buyer for sure. I just don't need to do that myself, I prefer to control the acquisition phase of the wholesale deal. 48 hours to get the real check to the listing agent or title company is correct.

Michael

Thanks again for getting back to me Michael...

So, when you first started... did you have to depend on the "cash buyers" money, for any up-front costs??

and, do you already have a property AND buyer set up before you submit an offer?? or do you submit an offer before you have found a buyer for the property??

As for the agent.... she said - "basically earning a commission - aka a "finder's fee" - you have to have a license. I had a guy try to do that last fall, and the title company told me that what he was doing is illegal, and two different title companies refused to do business with him after that."

So ya, I think she doesn't really know what she is talking about (as you are proof that is not illegal here in CO.) and I probably will not continue on with her as she doesn't seem too interested...

On the first MLS listed deal I did I used a credit card cash advance to cover the earnest money. I had done several deals directly with motivated sellers and only put up $100 as earnest using my own contracts, no agent involved.

What I do now is find a property, get it under contract and then send it out to my large and continuously growing buyers list.

What your agent told you is true. You can't earn a commission or a "finders fee" without a license. Of course that's not what I do. You can not represent the buyer or the seller only yourself.

Eric, why does your agent need to know what you are doing, what your exit strategy is? Just tell them you or one of your partners or private money guys will fund the deal. YOU are the buyer, get the property under contract, then assign it if possible, transfer the LLC or double close it.

Michael

hello Michael...

all of this info is awesome... thank you very much again for all of it!!

as for my agent... i'm not sure why she wants to know... I mean I told her about never actually owning the contract.. I told her I was just looking to assign it and ONLY collect for finding that contract for the buyer.. I told her my name would not be on ANY kind of documents as well...
I think she is just concerned that I won't get stuck with it.. ya know, (what would happen IF I couldn't find a buyer for it)

So, you say you find a property, get it under contract, and then send it out to your buyers... What happens if you can't find a buyer for it before your close date?? Do you just drop it and say you are no longer interested in the property??

Don't tell the agent you are assigning the contract! You WILL be on the contract until you assign it. All the agent needs to know is you will close the deal. Have you read any of Dean's books? Read 30 Days to Real Estate Cash if you have not done so. You really need to do some study because it seems you don't quite have a clear picture of how to wholesale.

I have an inspection period in the contract. If I can't find a buyer within the inspection period I terminate the contract. That way I don't lose my earnest money.

Michael

Hello Michael...

Actually I have been reading this exact book... That is why I have been asking so many q's about it.. haha

And the only reason I have told my RE agent about this and explaining it to her.. is because I am trying to get her in on it with me.. She is very trusted and I have had a decent relationship with her for a little over a year now..

I am about half way through the book now and learning about how to find cash buyers... I think the best way (so far as I look more into "wholesaling") is to try getting a very good trusting, business/casual relationship with an agent AND cash buyer.. I seem to do pretty good in finding excellent foreclosure deals, and would just want the relationship with the two in order to use the buyers money for earnest money and the agent for her license and information she can provide...

And in turn they will use me for putting the deals together and finding properties...

The best way to get an agent "in on it with me" is to close a deal. THEN they will do all sorts of things for you! Put the deal together, find a buyer and close. SHOW them how it works.

That is just my advise. If you want to tell them everything you are doing up front and try and get them to work with you than that is up to you. It may work out just fine.

Good Luck!
Michael

Great job Michael, how do you "have a couple of LLC's sitting around":) without having to pay anything or too much, here in CA it is costly to to that unless you have some funds. thanks.

The Colorado Secretary of State had an LLC sale in February this year. $1.00 per LLC! So I got 20 at that time. Wish I had gotten more! LLCs only cost $50 normally so that's not bad. I know they are much more in California.
I know some people that offer in the name of an LLC they don't have yet. Say the address on the property is 123 Main Street. So they offer in the name of 123 Main Street LLC. Then if they get an accepted offer they create the LLC. That way they have no money invested unless they get an accepted offer.

We always do contract assignments when we can. If not we do the LLC transfer.

Hope that helps,
Michael