Wholesaling Money?

Wow, Wholesaling Money? I got an offer today to broker or bird dog for a private loan company.
This company sells a program and teaches you how to broker loans to all these rehabbers. I gotta say, it sounds brilliant. The company goes on a long shmeal like 20 minutes or more, but they had me hooked fast. You decide if you want to make 1-3% loan fee.
This wud def enhance my wholesaling real estate biz. Imagine this. I’ll sell you this fixer property you want and I’ll get you the money for purchase and rehab, can you say no to that?
Of course this company will sell you all the info and paperwork needed and a lifetime membership for the low insane price of only a one time fee of 97 buks, But wait.
Of course how cud it not be worth tons more but still I wonder, why charge me to bring you deals?
How ridiculous does this sound? Be my bird dog and pay me only 97 buks to join my team.
I’m excited, I’ll pay the 97 buks even if I have to cash in my cans to get it, imagine what you cud learn and the possible income.
I have a lot of contacts, I’m sure I cud get this going.
Of course now my neurons are firing, how bout brokering this deal to all loan companies and get my buyers the best and lowest interest deals possible and how bout making our fee $5-10,000
And what about commercial and business loans?
This sounds way better than the back yard worm farm I was considering.

I remember buying a used VHS course on ebay about something similar for $15 and looked into something like this in my area a long time ago and found out that 1) I cannot get a commission or charge a fee for a loan on behalf of a private lender if I don’t have a mortgage broker’s license and 2) if the private lender decides not to issue funds on the closing date for any reason, you can get sued (mortgage brokers have insurance for this). Maybe the laws are different in your area. If not, it’s not worth it. I threw the tapes in the trash. Consult a lawyer first. Let us know how it goes.

Hey Dave, thanks for ur response, do you remember who told you that you needed a mortgage brokers license to broker a private loan? It sounds kind of ridiculous. The loan company has all the licenses, if they need one, which I’m sure they don’t.
5 or 6 years ago I had a homeowner turn me in for selling real estate without a license. I had sent this homeowner a few requests to buy his home. He was irate. Shortly after I had the prez of the local re licensing board contact me by phone and then with letters demanding I show them my records of the houses and profits I had made wholesaling houses, they even threatened me with seize and desist orders. Of course me being the arrogant A-Hole, I threatened them with legal action for harassment for a legal business.
Then I sent letters to the Board or Realtors in Sac Ca and demanded they discipline this ignorant guy on the legalities of wholesaling properties.
I have also been told many times by realtors that what I was doing was illegal.
So I’m just saying you shudn’t run with ur tail between your legs when you get advice from a non educated unethical realtor or lending company employee that dont like what ur doing.
And a loan broker being liable for a company not furnishing a loan also sounds ridiculous.
So Dave, do not be so quick to succumb to bs legal advice.
A motivated person wud have taken those old VHS tapes and went to town with them.

I researched it and found the law on the books that I can’t charge a commission or finder’s fee without a license. The laws could be different in your state and maybe you can do it in YOUR state. I’m just saying research it or use a lawyer of your choosing before you commit to it. Obviously, it’s silly to take legal advice from a real estate agent in that circumstance. BTW why aren’t you moving to the next level anyway and just get yourself a mortgage brokers license and save yourself the trouble? I’ve made several million dollars in this bull market. Where are you at now? I’m surprised that someone who’s been on here as long as you would take an out of the blue private lender’s word that it has all licenses and everything will go smoothly without verifying this $97 scam in a box with a real estate lawyer.

I think I mentioned this on here before years ago about a private lender that didn’t forward the funds on the closing date. There was a private lender called Interbay (no longer in business) and found by my mortgage broker. They offered a 70% LTV first mortgage on a 14 plex I was closing on

A few days before closing, my mortgage broker called me into his office that the lender threw in this new clause to the mortgage that said before I close I had to sign that I agree to a blanket mortgage lien against all my properties or I violated standard terms and they would not lend me the money. It was outrageous. I went to my real estate lawyer and asked if I could force them to provide the money on closing if I didn’t sign that new lien agreement. The lawyer said, no they are allowed to do that under standard mortgage terms, but you can QUOTE “Sue the mortgage broker for damages” for setting you up with such an unscrupulous private lender or talk to the seller about moving the closing date and getting a mortgage with another private lender. Luckily, the mortgage broker was working with a second private lender just in case and I convinced the seller to move the closing date another month.

With your private lender in a box, if they make some unreasonable request right before closing date and refuse to issue the funds and pocket your fees, what are you going to do if the seller or buyer sues you for damages for not closing? Do you have another private lender lined up like my mortgage broker did or is it just this so called $97 lender in a box?

ALSO, I lost a couple grand in fees I paid to Interbay and I never got my money back. I could sue, but a couple grand is peanuts to me anyway considering the deal I ended up with so I wrote it off as another life experience.

BTW–I could have gotten a mortgage brokers license as I used to be a licensed real estate agent, but I make more than enough now just collecting rents and doing a couple large deals a year that I don’t need to restrict my freedom with all the extra hours I’d be spending each day as an agent.

Wow, you sure put me in my place. But to say it’s a scam in a box is such negativity. This offer I was referring to comes from this site, REI, and endorsed by our guy, Frank Chen.
If you have made millions then I will bow down to ur greatness and crawl away and beg forgiveness…
I do want to take it to a new level and that’s why I’m interested in this private loan brokerage offer.
I’ve made hundreds of thousands wholesaling distressed fixers, but right now I’m eating beans and hamburger and looking for that next level.
If I had listened to the negative naysayers I wudnt have made a dime in real estate.
If you got rentals and a good income from that, you better get ready for the meltdown because your tenants have lost their jobs.
I have no interest in being a licensed Mortgage broker when I can simply broker private loans as a private citizen and charge a larger fee if I choose. I have no interest in getting a realtors license when I can simply wholesale houses for a large fee. If I want to build houses I won’t get a general license, but hire a contractor.
If this economy goes belly up, I’ll send you my recipe for beans and cornbread.

Well, you should have said it was endorsed by this site and the people on here to begin with.

If I’m a negative naysayer, why am I successful in real estate? What’s in it for me to be a negative naysayer? You need to stay focused on one thing and think how you can take that one thing to the next level instead of doing a bunch of different things so you’re not eating beans and hamburger all the time. 10x yourself.

If you’ve already made hundreds of thousands in wholesaling, then you already know all the private lenders in your area. Why don’t you just contact them and work out a referral deal the next time a deal shows up? What do you need a $97 loan in a box for? How many decades have you been doing this? Better yet, contact those private lenders you already know and ask them what’s the criteria they’d require to lend you the money if you put an offer on a distressed apartment building, office building, retail plaza, etc. for yourself? You’ll make a hell of a lot more money in real estate appreciation in addition to passive income. You’ve already got the experience doing this for decades, no?

I have nothing to worry about with the meltdown as I don’t rent out luxury rentals. Anyone can afford an avg of $900+ a month rent. Plus, Canada has the new CERB Unemployment Insurance benefits which gives everyone who made at least $5K in the past year $500 a week for 16 weeks. If it’s a couple that worked, that’s $4,000 a month for doing nothing. I don’t have kids in any of my buildings. Everyone paid their rent on April 1st. I’ll do fine in this market. Thanks for your concern.

Did I piss you off?, sorry, I do know how to push those buttons. I started wholesaling RE about 6 or 7 yrs ago. It just seems that calling the loan brokering offer a scam in a box was just a tee tiny bit negative.
And suggesting the 97 dollar offer shud be trashed and to do it on my own is kinda dumb actually real idiotic and dare I say, slightly negative.
With your superior real estate skills maybe you cud educate us peons. Consider this, the 97 dollar loan in a box is potentially the baddest ass info you ever came across, but some superior guy on his high horse shoots it down and dashes the hopes and dreams of us little guys, and he lives in another frikin Country. Suggesting this offer is not needed and I shud do it on my own is ludicous, I like to know something about the process and having documents available for the transactions seems logical. I don’t know any private lenders, I just wholesale these properties to the rehabbers. I know nothing about loans and rehabbing.
And I bet there is a clause in them that indemnifies the poor little private loan broker. And focusing on one thing is so wise, but I think this opportunity will put my business on steroids and take me and us to the next level. I’m thinking if you had learned or went into loan brokering you wud be much more successful. Maybe you shud have said, up here in Canada you need to be a licensed broker and I dont know jack squat about the USA.
I’m just a simple okie and I luv beans and cornbread.
What really sucks is I waited a few days and when I went to buy the course, it’s frikin sold out.

No, you’re missing the point. Your problem is it’s you who is negative and will never get ahead because you refuse to focus and push yourself on a straight line to the next level. You’re your own worst enemy. In those 6-7 years, you never sat down with your buyers over lunch with a couple beers and ask them how they got to where they were and how they got their money to do these rehabs? And none of these buyers you dealt with like to brag about how they became successful? Really? You don’t do any due diligence on your buyers to verify that they can come up with the cash on close? You never offered to buy a mortgage broker lunch and ask him about their successes and pitfalls about doing deals? How do you not already know this stuff after doing all these deals for 7 years?

You’re just going in circles in life doing a little this and doing a little that and staying in your comfort zone, complaining you can’t get ahead in life instead of doing what it takes to advance to the next level. You’re doing the exact same thing you were doing 7 years ago and it sounds like you’re making the same money or maybe even less. Good for you. Bravo.

Your good at criticizing and brow beating the little guy, you must feel so proud to put rando in his place.

Now let’s get to work, get ready for the coming housing meltdown, homeowners are going to need our help.
Bandit signs, direct mail, bird dogs, door hangers, Craig’s List ads, and of course, driving neighborhoods. If you see yard sales stop, I’ve done a few deals with distressed sellers trying to make some money with a yard sale b4 they crash and burn and run for the hills. One guy was selling his furniture for food money and living in his RV in the driveway.
It’s a great feeling when you can help someone.

My intent wasn’t to put you in your place, but to give you a little push to make you want to advance to the next level. If you still think that’s what I did, then I’ll say it again, you’re your own worst enemy.

BTW-instead of stopping at yard sales, why not take your search for distressed sellers to the next level and contact those plaza and office building owners with a lot of empty units and for lease signs? Covid will eventually be over, yet some reits are publicly trading at a third of their pre-covid prices. Do you see an opportunity here?

Now wer talking, tell us more Bwana, we find commercial buildings that have for lease signs, we contact the leasing agent and get owners name.
Give us some minute step by step details on your strategy…
And will any of this work with the US economy teetering on a bottomless sink hole?

Same way you find the owners of neglected houses. You check the court and tax records. It’s the same strategy. Why would you call the leasing agent? Do you do that with a residential house? That’s just stupid.

It sounds ridiculous but some of the programs and courses I’ve seen newbies sign up for is unbelievable. It’s too bad the industry gets a bad rap sometimes because of this!

I never use tax records or courts to find owners, my Title company sends me that info along with a full property report and comparable’s of recently sold.
Your missing the point, how do you (we) proceed? We got sellers contact info.
Are you looking to buy & hold the property? Wholesale it? Fast flip it, rehab it or what? give us some meat. Details, methods, end game, Don’t be so difficult, we are hungry for knowledge. You going to share how you made your millions? Or are you on this site to ridicule and spew negativity?

If you have the sellers info, you already know what to do. You’ve been doing it for 7 years already. It’s the same skill set. Just do it. Don’t be your worst enemy.

Well, tell us how you do it, don’t be vague. Lay it out, step by step.
What I do is find distressed fixers and wholesale them to rehabbers.
Help us, with ur knowledge and decades of experience.

I might have to do some thinking here. Wud wholesaling office buildings and dare I say shopping malls and Apts be any different that wholesaling these fixers I’ve been doing?
But that’s scary, so was wholesaling houses at first.
Imagine how many of these are going to be available and maybe, severely discounted.
I’m distressed to see all this stuff going down, but hell, let’s get ready for some opportunity.
And if they are abundant, will ther be buyers?