I did it!!!!! My first $10,000.00 assignment!

But the realtor does not do as much work as we do on the deal. The research etc...

If the Realtor is working with an investor, he will probably search MLS, prequalify the listing, pull comps, check rental rates and vacancy rates, write offer and addendums, negotiate the deal, and oversee the closing process. The buyer is still a part of all these things and they make all the decissions.

Al

Carol I'm happy for you, congratulations,
We are all waiting to hear about the next one !

Regarding the purchase and assignment contracts:
Did you use the DG Site assignment/purchase contracts ?
What did you use for closing dates and contingencies in your contract with the seller - or how did those negotiations go ?
Thank's for all the extra info!

-Brian

Contracts:
I used the DG Purchase agreement and assignment contracts.

CONTINGENCIES: 1) Offer is contingent upon suitable home inspection. 2) Purchase contingent upon ability to re-assign this purchase contract to another buyer without penalty.3) Purchase contingent upon partner’s approval.

The closing date was 60 days.

Here's how the deal ended up.

$130,000.00 cash ($10,000.00 of that was my assignment fee)
$129,000.00 owner finance with a 6 1/2% interest only and a balloon after 15 years.

So basically the buyer got a no money down deal( because he got a commercial loan for the $130,000.00) with $150,000.00 instant equity and the owner will get more than he asked for the home in the long run. AND I MADE $10,000.00

Not bad for my first deal!

I am new to the website but that is a very motivational post i hope to do my own soon. just wanted to ask a general question- is it difficult to find buyers for foreclosures that are high? foreclosures in my area are 200K or more.

Angel

When you say foreclosures that are high what do you mean? Foreclosures will go for various amounts depending on a particular Real estate market. If the houses in an area are selling for $300,000.00 or more and there's a foreclosure for $200,000.00 then it is obviously a good deal.

Don't only look at the price of a foreclosure, evaluate the market in the area.

well in my area the houses sell in the 400ks to the 600ks. so when i see 299,000 it makes me think that it is to high. i guess i am so used to hearing people outside of new york city finding foreclosures for 40k or 50k that it makes me think it is too high. the reason i asked is because your deal was similar to what any of mine might be like? thanks for the reply.

angel

Since I have posted this first deal I have gotten many PMs from those that are new to RI and this site saying how much my story has encouraged them to keep going. I am so thankful that I could somehow encourage others to push forward and succeed.

When I first came on board I did not think I could do this. I was scared and doubtful too. I am a mother of 7 children and have spent my live accepting poverty as my only option in life. But when I read Dean's book I was inspired and I decided that I was going to do this and change the future of my children so they did not have to accept poverty as a way of life.

This deal has also encouraged me. Now I know that it can be done. I did it and so can you!!

Thanks for the inspiration Carol! I'm just taking some notes from this and take action very soon.....Thanks agoin to all the investors in the DG family.

Jeff(Eagle Invest. Props., Inc.)

This was a question that was asked previously(i think by Al?) Well, i base my ASSIGNMENT FEE off of a couple of different factors: #1 How much gross profit the deal will hold, #2 How desirable is the property that i have "UNDER CONTRACT" and, #3 How quick or long am i willing to hold the property for? My ASSIGNMENT FEE's are NEVER a set FEE, they fluctuate depending on the type of deal and the 3 factors i just talked about, SULLY

Your story is truly inspirational and thank you for sharing the process with us. I just know you are going to exceed even your own expectations! I tried to PM you about your realtors name and contact info, but for some reason it didnt work. Can you either PM it to me or post it on this thread? Thanks a million,
your fellow Jersey investor!
Laura

carol on what page in the book is the cost evaluation at?

Angel

Angel, You would be better off getting it from the forms and docs to the right that way you can print it out.

Congrats Carol. You made my day. Keep on keepin' on.

And thanks Sully. Is it possible to please clarify with numbers. For example, with your formula-60%-70% x ARV -REPAIRS, -ASSIGNMENT FEE= MAO- would the numbers look like this:

ARV=100K
60%=60K
Repairs=10K
Assignment Fee=5K
MAO=45K?

BTW, what is MOA? Thanks.

Mark B.

after you got the owner to sign and got an investor to sign another contract where did you take the forms to be finalized? And how did you get your money from the investor?

Carol,

What do you say when you call the for rent ads?

Jason

YES, Mark B., that would be Correct, that's the formula that i'm using in my current local market, as for what MAO means? MAO=Max Allowable Offer, SULLY

Thanks, Sully. I'm committing to making at least ten offers this week and getting at least one property under contract. Mark B.

Sounds like a plan there Marky Mark, lol, No really, sounds good, SULLY

Welcome to the DG family, glad to have you here. I enjoyed your profile, that would explain the great picture! Most of ours are blurry at best... LOL! Well, I wish you the best in your rei journey and look forward to seeing you achieve your goals and dreams!

Good luck and God bless,

Your question about where do you take your contracts after they have been signed by both parties, take them to an investor friendly title company. They will be very valuable in REI. Look in your phonebook and call around and interview the local Title Companies. Make sure they are Investor Friendly and do double closings and are cool with assignment contracts. It's easy to talk to them because you will make them money so they will want you to be partners with them. Hope that answers your question.

Carol,

I am new in the area of real estate but I am getting better every day. I can not wait for me to make a deal like yours but it is for sure motivating me. Thanks to you I am going to start picturing a $10,000 check with my name on it for doing an assignemt of contract. I already have the list of Investors and will continue to add more. Now I just need to find the deals.

Thanks

Carlos P.

Someone posted this old thread regarding my first deal in 2008 on face book and It actually brought tears to my eyes. I will remember that deal for the rest of my life!

WOW congrats, hope to be in your shoes soon enough ; )

You are an inspiration!