Laws and Limitations

Bird Dogs, Wholesaling
1

I just had a quick question on the laws limitations for my state California. I am an investor starting out wholesaling. I have already purchased a few systems to study, but I still feel wet behind the ears when it comes to the actual factual process. I am not familiar with ALL/VARIATIONS of the contracts, and what things can and cannot be done in my area. Where can I obtain this information?

2

  1. Experience

  2. Local REI Club(s)

  3. Mentor(s)

  4. Local Real Estate Agents/Borkers

Keith

3

Thanks a lot Keith, more likely to go with #'s 1 and 2. 3 and 4 I am definitely open to, but the person on the other side will have to decide whether or not they feel like holding someone’s hand at the moment. :biggrin . How can I ask/ be mentored without annoying someone?

4

Often, you can ‘luck into’ one at a local REI Club…

Keith

5

Thanks again Keith :biggrin!
We only did a mailout to buyers last week and got nice response rate. The business is coming at us faster than we predicted it to be! So I want to be able to hold up my professional image as an Investor and provide good services from the gate! Just figured the more knowledge we have on our product/services, then the more trustworthy the company will look.

6

Where are you located?

Keith

7

Northern California

8

All you really need to know documentation-wise is to get the property under contract, and for the most part a contract is a contract. When you send it to your closing attorney he/she will ensure everything is done properly (including your contract).

9

Benefits of a FLEX Option

FLEX options are exchange traded, which means they are available in the same method as any other exchange traded security. A routine customer can buy or sell a FLEX option openly on the market. Further, as with all options, the customer does not have the obligation to execute the option unless the desired strike price is hit. Even then, it is up to the customer whether to execute. With a FLEX option, a sophisticated investor has more flexibility to seek the terms of contract he or she believes are most likely to be executed in the future.

Risks of a FLEX Option

FLEX options are unique, which often means they are not highly liquid. Unless another customer desires the precise terms you set in your contract, you will not be likely to find a buyer on the open market immediately. Further, FLEX options require negotiation, which means they take a longer time even to purchase. Common investors may find it more efficient to simply purchase standard options contracts rather than FLEX options.

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