Before I begin to respond, please indulge me. I guess I’m not as smart as I think that I am. Could you please quote me the Florida State Statute that governs what you deem as “Secret Profit”. While you’re at it, can you quote me the Federal Statute or the Statute in the other 50 States as well? It would be most appreciated. Once we receive your information we will GLADLY publish the Statutes so all who visit here can make sure that they are in compliance. You will be doing a great service to the realtor brethren by kindly supplying all of us with the laws in the various states that you say exists.

The Realtor Code Of Ethics is not by any way shape or means a law. In fact, the preamble of the COE states as follows. “While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence.”

Seems pretty clear to me that what we do does not violate the law and agents who want to flip houses surely can. As for disclosure…sure no problem…If I was a Realtor involved in a transaction, All I would have to say is that I have a financial interest in the transaction. Or that I have a financial interest in the entity of the transaction. That’s all that’s required by the COE. However there is no such requirement under State law.

So while you as a Realtor may feel the need to do so, and it is most assuredly honorable and ethical under the COE, it is not a law to do so.

That being said, ANY realtor can buy and sell any property. As for grinding you hard to get a better deal…hmmm..ya got me on that one. You have me on two parts. One, how would you as the Realtor have ANY idea as to my profit on a deal and secondly you must assume that I’m new at this. Because for some reason you think that my paperwork wouldn’t be bulletproof so that my deal..and my profit therein..wouldn’t be completely secure. I don’t renegotiate. I don’t have to. I make sure that the deal, once accepted, is based upon the terms that I want and if I don’t get my terms..then I walk.

So once my deal is signed, it’s money in the bank. You see we’re in “business” and it’s our obligation to make sure that we don’t have hiccups after the fact. So excuse me if I have no idea what the heck you are talking about.

Hey Louie…with all due respect, it’s painfully obvious that you really don’t understand the concept of wholesaling or re-selling real estate. You guys call it flipping because it somehow makes you feel better thinking that it’s some kind of “scheme” investors play but in reality you have no idea.

If you had any idea, you would be able to read some of the many articles or watch some of the videos or maybe even listen to some of the radio shows and learn before you speak and make yourself look like the ignoramus you seem to be.

Obviously you don’t know how to structure a wholesale deal or you would know how the FHA rule doesn’t apply. Not that you understand that either based upon your comment.

However, your comment has definitely illuminated me on one thing. I certainly now know why more agents do not purchase and flip homes. If you are representative of how they think (thank God you’re not), then it would be completely understandable.

Don’t worry, I will NEVER be asking you for any further illumination…except of course for the aforementioned State statutes that you refer to. When you have those please feel free to post that information. Many of us will be waiting with baited breath.

Maybe they do things different in Vegas…either that or the desert air is getting to you. Stay out of the heat bro!

Having said that, YOU, Mr. Saavy investor will NOT be so excited about closing once this profit is discovered as YOU, MR. Saavy Investor will grind me hard to get a “better deal”.

THAT’S why agents most likely do not purchase and flip. As well as the 90 day flip rule in the event of a buyer electing to use minimum down payment programs like FHA…anything else I can illuminate for you, please ask.

Thanks for the comment and for stopping by.

Every deal we do is purchased as cash and sold to a cash buyer. It’s the only way we do business. We won’t look at a deal that doesn’t work within those parameters. (most do!) In today’s heavily burdened distressed market it’s easy finding inventory And even easier to find cash buyers to sell to. Believe it or not the hardest part in the transaction is finding Realtors who know what they are doing and understand how to correctly liquidate a property.

And everything we did in the deals could have been done by the Realtor. She just didn’t have any idea as to what even happened. I bet if she was asked today she would tell you that she did not know what happened. In fact the property has changed hands AGAIN as the group we sold it to had enough spread to sell it again…man I love this business!

Yes, the blank stares still are prevalent. While simultaneous closings in the old sense have pretty much have gone the way of the dodo bird, the new way is even more efficient and more profitable. We love it, the title companies love it and the funders love it. No exposure, no risk, easy, clean deals. Yet most Realtors who were lost before, are even further behind the 8ball. No deal, if structured correctly, should ever fail because of funding. Funding is now the EASIEST part of the transaction.

We know it’s surely not illegal and the ethical argument holds no water. I think people hide behind ethics because it’s warm, fuzzy and comfortable. It gives one a security blanket and reason to tell others why they aren’t making any money. It also gives them reason to NOT learn how to do things.

We’ll be talking more about this in the next few weeks as we release the case study we have been referring to. Stay tuned.

Mention hard money and you usually get a blank stare. Keeping an investor list of ready and able buyers is also important. If all else fails, you’re out the deposit in rare cases.

I’m kind of surprised about realtors not knowing how easy it is to obtain funding for short sale deals. I would have thought that the funding hurdle would be the smallest impediment for a deal. As an investor, we know if the numbers work you can get money for just about anything.

So your comment and the numbers from the poll are very enlightening to say the least.

I think a lot of agents don’t have the capital right now, and many do not understand “hard money” and simultaneous closings, or dry closings. Without the capital to close, if they cannot find an investor prior to closing, they fear loss of reputation with the other agent for lack of ability to close. They look at the small commission as a guarantee, or low risk loss, but buying a short sale as a huge risk. If they are comfortable with short sales, the risk factor should not exist. As far as capital, there are ways around that, of course.

Just my opinion talking with a few others about it, not my practice, or beliefs.

I usually explain to possibility to my sellers that I cannot guarantee a short sale closing or what a lender will do as a result of a short sale although I always let them know they will be the one to make the decision when the short sale approval comes since I want them to understand the possible implications. I also have them get their attorney’s advice.

I just never thought about asking for the Satisfaction upfront. Good idea. BTW I still have the SS package from the seminar

You asked…how do you know the wording BEFORE you close the short sale?” Simple, you ask and make the Satisfaction a part of your short Sale package, or you ask to see a draft of what they will be providing. It’s all in the negotiation. Sometimes we even ask for it to be in place at closing.

Does it happen all of the time? Of course not, but it happens most of the time as we let them know that we know what were doing and it’s part of the overall package. You remember our package don’t you?

As for the 1099, you know about the deal with the primary residence don’t you…as for investment property, we cover the liability for taxes, in any amount with the disclosure right up front. Then it is explained in detail and they sign an acknowledgement.

It’s all about CYA and besides…what happens if it goes to foreclosure auction. What’s wors, a tax liability of a judgment which at that point is a deficiency judgment. Realtors only look at one side for the most part and forget the ramifications for the Seller.

I’ve always fought to get the “deficiency language” removed from the approval letter and have been successful many of the times. Love to hear your response so it can help me in future dealings

Again, we speak of the unknowledgeable. Since they do not know, they fear. They are taking the opinion of those who more than likely know less than they do.

Here’s an easy response to the water cooler type. Can you please quote me a law..not an opinion, a law that says that I can’t flip a property the same day? And please, let’s not go into any Code of Ethics garbage it’s useless beyond the preamble. Remember what we showed you in class?

Stay away from the water cooler, it’s costing you money !

I try to put offers on properties and either short sale (or REO) agents never call back to give me showing instructions, already have several offers and keep the property “Active”, have several offers then send ALL of them to the bank, or some other stupid thing that either kills deals or never gets them together in the first place.

Many of the people I’ve helped with a short sale have been with other agents or attorneys who couldn’t get the job done or didn’t care enough to in the first place. It’s really sad.

One more thing I thought I’d mention about the fear and liability thing…

I’ve heard brokers and other attorneys talk about the liability of Realtors acting as investors of their own lisitngs. They say that if the Realtor buys a home, let’s say, for $150,000 as a short sale and then flips it for $200,000 the same day, and the seller’s lender gets a deficiency for the larger amount you could be liable.

Basically, I think they are looking at it like if you had a buyer for the $200,000 price then you should’ve sold it for that amount instead of lining your own pockets and costing the seller to have a higher judgment amount.

I’m not saying I agree with this, but this is what I’ve heard around the proverbial water cooler…

Case in point, we got a contract signed last week and called the agent to follow up and he said “I think the bank took the house back…” Then he asked us if we knew how to check.

So we did, and the house got auctioned off on the 25th. The agent never knew and obviously never cared, yet he took a short sale listing when he obvuously had no business doing so. So he’s off to the next listing and his client is left wondering when the knock on the door is coming.

We see this over and over again. It’s an epidemic. Remember less that 15-20% of short sales close so you can plainly see that something is really…really wrong, and it can not be 100% blamed upon the banks.

I personally strive to get past my fears and move toward freedom when possible, but I certainly can’t say I’ve done it consistently or well, just my journey so far.

Anyway, I think once you reveal the case study you are working on and show people that might take care of some of the “lack of knowledge” issue, but there’s still the fear thing that people have to decide to move past on their own.

I know you guys might be looked at as “Realtor bashers” or “anti NAR” or whatever, but I’ve listened to you for a while now and I believe I’m accurate in stating that you are NOT so, but just against what wrong with both agents and large associations when it comes to stifling the ability to earn income and act professionally in the best interest of those they represent. Correct me if I’m wrong somehow…

So what you are essentially saying is there is a huge lack of knowledge. If one knew what they were doing then the feeling of being uncomfortable would go away.

I remember when I first learned to drive. It was on one of my Dad’s job sites. And he told me to go pick up some supplies across the construction site. You know I was sweating bullets and really uncomfortable but after doing it a few times it was a lot of fun.

Now there is no discomfort getting behind the wheel. So the question that remains is why do Realtors cave to fear? If they learn how to drive now, it only gets easier…not harder.

So while my mom never wanted me on the highway when I first got my license, once I got up to speed and learned the rules of the road, I got on that highway.

Sorry for all of the metaphors but what you’re saying is that while Realtors may have gotten their drivers license…most are afraid of actually getting on the highway because of what “might happen”.

That’s a bit restraining isn’t it?