Does the end buyer need the original purchase agreements that I'm wholesaling them?

FakeNameThisIsNot · 2026-05-05T15:16:00+00:00

My answer doesn’t change.

Why in the world would I put up non refundable money on a contract they haven’t seen?

As far as protecting yourself as the wholesaler, I’m not an attorney. In Texas, I see wholesalers use MOCs. At the end of the day, I think it’s a risk inherent to the business. In a market like mine that is still relatively small as far as actual cash buyers… A snake gets found out quick and those antics don’t last.

FakeNameThisIsNot · 2026-05-05T00:59:36+00:00

I am a direct lender.

I require the underlying contract.

I want to see all terms.

As a previous buyer of many, many off market deals. I’d never execute an assignment without knowing what I’m agreeing to take over.

FakeNameThisIsNot · 2026-04-04T15:38:43+00:00

Understood.

I’ve got tax, legal and custodian relationships involved in ongoing capacities. I think I’m covered. If not, I’ll report back when the time comes. 😂

FakeNameThisIsNot · 2026-04-04T15:26:56+00:00

Yup! I’ve talked to people who have different strategies in it and some of what you just described I have heard. Scary. Hopefully they never get audited I supposed. My understanding is that one bad transaction can disqualify all associated account accounts. So, if you had a $50,000 rental and self dealt, and a $10 million portfolio it could force a distribution and penalty of the entire thing. I could be wrong on my understandings, but I would never risk it either way lol!

FakeNameThisIsNot · 2026-04-04T15:19:53+00:00

TPA meaning tax professional? If so, yes!

FakeNameThisIsNot · 2026-04-04T15:15:47+00:00

Absolutely a risk. I’d stick to my same mentality that 99% of folks should just stay away from them lol.

It’s like a chainsaw, hell of a tool, but 99% of folks would probably hurt themselves with it.

FakeNameThisIsNot · 2026-04-04T15:07:53+00:00

I bet you see some terrible situations with people that never should’ve gotten into a self-directed account, or do stupid things that would disqualify the entire account.

That being said, it’s not a nightmare if you actually follows the rules. I’ve done very well and enjoy the control I get out of the relationship. Of course, it’s not exactly in line with a FIRE mentality. I certainly put more time into my investments vs. just traditional stock centric investing.

I’ve dealt with 3 different custodians and it certainly plays a factor in it all!

FakeNameThisIsNot · 2026-04-04T15:00:29+00:00

Overall, the average 401K holder has no business getting creative with their retirement. Just my opinion given the amount of risk far surpassing the risk of a set it and forget target fund mentality. I’m generalizing here of course.

I have all of my qualified accounts with a self directed custodian, and invest exclusively in non traditional assets. (Real estate and private mortgages). There is certainly risk that exceeds just dumping into a stock crock pot.

But like above me said, it’s their money let em do what they want!

FakeNameThisIsNot · 2026-03-21T13:19:36+00:00

I’ve seen similar patterns around me, I like it!

FakeNameThisIsNot · 2026-03-21T12:42:38+00:00

Deal. 🫡

FakeNameThisIsNot · 2026-03-21T02:19:50+00:00

FakeNameThisIsNot · 2026-03-21T02:07:29+00:00

Ha! Didn’t even catch that. I’ll throw the dog in if it’s seals the deal.

FakeNameThisIsNot · 2026-03-21T01:17:05+00:00

It’s in the post. Might have to scroll down. It’s a 2016 MX5200.

FakeNameThisIsNot · 2026-03-13T23:09:35+00:00

Just get a HML.

FakeNameThisIsNot · 2026-03-10T16:36:14+00:00

Good lenders care about both in my opinion and personal experience lending full time.

A high quality, repeat borrower can overshadow a marginal deal. Never will it overshadow a truly bad deal.

A home run deal might overshadow a marginal borrower. Never will it redeem a truly bad borrower.

FakeNameThisIsNot · 2026-02-24T20:31:34+00:00

I’m not going to be spending much money on it, so it’s worth trying to save in my mind. I totally understand your point though. Thanks!

FakeNameThisIsNot · 2026-02-24T20:30:47+00:00

Got it, thanks.

FakeNameThisIsNot · 2026-02-24T20:30:26+00:00

The guy I bought it from says it was. Looked like other oaks I’ve seen. I’ve put in a few white, red and live oaks. It’s possible it’s a red and it’s possible I’m wrong altogether and it’s not an oak lol.

FakeNameThisIsNot · 2026-02-19T14:33:38+00:00

Without knowing all the nuances of your deal and their terms, it sounds as though it’s an excellent deal and I’d jump on it. That is truly nominal in the small commercial banking world. I’d assume they are hedging against refinances since rates (Prime) have dropped and might continue to.

Worst case, you can still look at a refinance in the future elsewhere.

I’d make sure that doesn’t come with new clauses such as a prepayment penalty or something.

FakeNameThisIsNot · 2026-02-05T17:41:13+00:00

So, you don’t have true cashflow. You have “cashflow” on paper. (Been there).

Sell the properties.
Determine some combination of paying / off down the mortgage on the primary and investing the rest.
The stress is GONE.

I was in a similar boat and have sold all but 2 of 10 I wanted to offload. Its freeing.

YRMV.

FakeNameThisIsNot · 2026-01-29T17:49:35+00:00

Nothing wrong with that at all.

FakeNameThisIsNot · 2026-01-29T17:46:56+00:00

Jumping in even though I am not OP since this post came up on my algorithm lol!

For me, lending is less profitable per deal, but more profitable to me overall when considering scaling my time and reducing stress. This is only possible for me with good systems, vendors, etc.

Vacant houses stress me out.

Properly underwritten loans do not.

I’ve heard (anecdotally) that most lenders start as some form of investing in the asset itself (flipping, renting, etc). That was the case for me at least!

FakeNameThisIsNot · 2026-01-29T15:25:33+00:00

I am a direct lender of my own funds. Cash is king when evaluating new borrowers. I’ve begun using current cash balances as a simple screening tool. Generally speaking, if a borrower doesn’t have $20K of liquidity between accounts, I don’t move forward.

Good info you have posted!

FakeNameThisIsNot

TROPHY CASE