$9,000 In 30 Days

$9,000 In 30 Days

A friend of mines told me last week that his dad has to go into a medical home and that he needs to sell his dads house. The home was built in 1905 and has not been updated or had any upgrades since. It’s in pretty bad shape. To totally renovate it with the latest upgrades and add a bath for a bed suite it will take about $70k. Arv in the area is $155,000.

Medicaid requires the liquidation of most people assets before being admitted into such a facility. My friend told me they do not care what price the house sells for, because any monies produced from the sale will go to the medical home.

I called another friend of mines to place it under contract; I did not want to be directly tied to this transaction because of the circumstances and did not want to list the property. I knew the acquisition price was going to have to be super low due to the condition, it’s a full rehab, roof, hvac, upgrade to 200 Amp service and rewire, siding and windows.

My friend that does wholesale deals negotiated a price of $10k and ratified the contract. A week later he found a buyer and assigned his contractual interest for $9k. Total sale price is $19,000. Its scheduled to close in 17 days.

Lets see how much he pays my broker in the form of a bonus for me. Not that he is obligated to pay my broker anything. We will see......

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*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*

Licensed Realtor
Various Designations
Gulf War Veteran


Wish I was your Wholesale Friend!

Basically you gave your friend the lead. He assigned the deal and is making $9k. Now he has to pay your broker which will be a bonus to you.

Now correct me if I'm wrong but, doesn't your broker take a portion of that bonus?? Also your wholesaler friend isn't even obligated to pay your broker.

I seriously hope he pays you and that you have something in writing??

You honestly should of flipped it yourself! This situation can be a receipe for disaster and lost friendship. Just speaking from past lessons learned.

Good Luck! I really am interested as to how this works out.

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Realtor Offering

Recently went to Open House So California, San Fernando Valley specifically) and YES, I believe Geographical Location makes a difference since I was asking RE agent basic questions and she was bragging that this house(sgl family, 3 bdrm,1 ba house was her ONLY property at the moment & how She expected it to sell FAST! The ppty was built in the 40's, had an odd separate bldg in bkyard(could not be rented out she said)+ "roll thru garage" set on a very narrow driveway with a fence in front! Family room had HUGE INOPERABLE fireplace and tan color SHAG carpet.Realtor's business card said "Family run by 3 generations" so I knew She was simply a Flag Bearer when she told me list price of $369,900. The price did not allow for ALL the RENO work (including kitchen, baths as well as outside) that a buyer would need done. Had to look at her face closely to see if she was joking? Bottom line, I'm calling to check on current price- it MUST be lower-by now!! Do your homework, be patient & Progress/VICTORY is eminent! Continued Success

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anita Page


Jason

Everyone says they wish they could have been my wholesale friend in this situation, truth of the matter I come across situations like this from time to time and like to keep a distance away from the situation. So I’m sure this isn’t the last time I will throw a $9,000 profit in some lucky wholesaler lap.

You’re right, the wholesaler I chose isn’t legally obligated to pay my broker anything. He could take the $9,000 and go buy a new motorcycle cash, and send me a thank you card. However, you would have to be a complete idiot to bite off the hand that feeds you. This isn’t the last time Im going to just throw a $9,000 deal his way, or find a buyer for his one of his wholesale deals. What successful business person doesn’t know not to burn connections and bridges? The only way you will excel in this business is with your network and friends.

You’re also right, if he gives me a bonus which should be $4,500 as he said he would, I have to split that with my Principal Broker, which I don’t mind because I pay them a set fee per year. After that set fee is paid for the year I collect all 100% commissions.

Its always the best thing to put all agreements in writing per Statue Of Frauds, so such agreements can be enforceable in court. However, I did not put this in writing. He gave me his word that he would give my broker half the profits. Thanks for sharing your experience and I respect it. Here is my take on it. I have done deals with people that we have put things and writing and those people have tried to breach the contract and screw me over and I still didn’t get paid. Just because you win a judgment in court don’t mean you collect. You know what I mean? I’ve been screwed over before just like you.

Then I have done business with people that Honor their word. Not too many of those type people around it seems. I’d prefer to do business with people that Honor what they say they are going to do and have a Code Of Ethics than work with someone that I need a piece of paper and the authority of a court to enforce they act upon what they legally signed. I believe if a person is Ethical and Honor their own words, you do not need a legally signed document to make them perform their word. On that same note , no court in the world can prevent someone from srewing you over regardless of what they signed, if they a true snake in their heart.

But that’s my personal belief in business, and I can’t argue with you, it’s wise to have the legally binding documentation and threat of court on your side than taking someone at their word. However, I know an agreement is needed for the unethical business people looking to get over in a SIMPLE situation like this one we are discussing.

__________________

*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*

Licensed Realtor
Various Designations
Gulf War Veteran


Nicely done Bennie

I'm sure your friend will come through for you, and as you say... if not, it's on him, not on you.

Wishing you continued success,

__________________

Valerie

“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss

"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown

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Hi

Bennie, just curious why dont you just wholesale yourself? There must be some reason cause ya that 9k is really nice. I agree I think your friend should come through. good luck.

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Quitting is forever pain is temporary


Success4life

Well in this case the reason I decided to have someone else write the property up is because the offer price was sooooo low and the seller was a friend I didnt want anyone to think I took advantage of the seller. Being licensed has its disadvantages. Being "licensed" is a huge responsibility. We have access to inside information and knowledge that the general public does not have.

Basicly I do this to keep an arms length distance from the transaction. Just crossing all the "T's" and dotting my "I's"

__________________

*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*

Licensed Realtor
Various Designations
Gulf War Veteran


Update

Finally closed this deal and proceeds were disbursted today. Here is the twist, after being haggled down the wholesaler friend decided to sell it for a $7,000 asignment fee instead of the $9,000 fee. He kept $5,000 and sent my broker $2,000. Now I basiclly GAVE this dude a payday and he gives me a 2k birdog fee? Is that wrong or am I being greedy or is he being greedy? Case and point is I could have gotten ANYBODY to sign the contract to inculde anyone online.

Now I basiclly gave him this deal on a silver platter and he told me we were going to split the proceeds 50/50 but thats not what he did. Im like $1,500 short. I didnt bother to get it in writing we were going to split it 50/50 I took him at his word.

The question becomes if I am going to let $1,500 interfer with our wholesale friendship? One thing is for sure, any agreement in the future im getting it in writing, could care less if Jesus was the wholesaler. Deep down I know to always get arrangments in writing, not sure why I decided to treat this any different. I always know to do that. I just didnt think this guy wouldnt have any reason to go back on his word. Besides he needs the $1,500 way worst than I do.

__________________

*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*

Licensed Realtor
Various Designations
Gulf War Veteran


Wow!

That you still would consider him is forgiving, doesn't sound like he stands by his word. If think you will work with him again then maybe a bigger cut next time and explain why or don't include him in your deals. Guess unfortunately everything in writing!

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Femaliceo

If I work with him next time I will get it in writing no doubt. I dont understand why people burn bridges like this. Im writing another post thats related to this a bit and would love your opinion.

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*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*

Licensed Realtor
Various Designations
Gulf War Veteran


Bennie

You need some new friends! Pick me! Pick me!

Karen

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Excellent Bennie

Bennie, this sounds like a great deal. This just goes to show that you can find deals all over. They are all around. Often we get in a rut of doing only a few things to find deals. You never know when or where you might find a good deal.

__________________

Chris

"Faith is the eternal elixir which gives life, power, and action to the impulse of thought.

"Faith is the starting point of all accumulation of riches!"

- Napoleon Hill, Think and Grow Rich


$9k in 30 days

Thanks for opening up about this. I learn so much as I listen to the real world victories and challenges that others face.

Wishing you wisdom and growth.


Chris

Youre right, Deals are everywhere. Just take a bit of effort to find some. Then knowing what to do comes next.

__________________

*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*

Licensed Realtor
Various Designations
Gulf War Veteran


carpediemchristian

Youre welcome, I actually never knew people wanted to or needed to hear my experience. Ill share more if its helpful. Thank you

__________________

*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*

Licensed Realtor
Various Designations
Gulf War Veteran


Dad

Aside from the housing changes addressed in your post, if senior parents need an overview of help and options available as they retire, they can always contact a "Certified Senior Advisor". CSA's are educated in various areas effecting seniors and can be very helpful resources. Google their sight.


Dad

Aside from the housing changes addressed in your post, if senior parents need an overview of help and options available as they retire, they can always contact a "Certified Senior Advisor". CSA's are educated in various areas effecting seniors and can be very helpful resources. Google their sight.


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