assigning a deal

That information was VERY educational!! Thank you very much... You answered all of the questions I had about the subject to a T...

So, with all of this being said... Do banks give out lists of these people facing "pre-foreclosure" to the public??

Thanks again Dallin...

Thanks, Matt, for your positive comments.

Banks do not give out lists of information, in fact they are very restricted in only being able to communicate with the property owner about the loan, and no one else, unless that other person has a release of information or power of attorney from the owner.

However, when a legal action is filed by the lender to recover the property, that information is public record. These actions, referred to as Notice of Default, Lis Pendens, Notice of Sheriff's Sale, or Notice of Trustee's Sale are published by the County, either through the court system, or the recorder's or assessor's office. In many counties there is a website to look up that information, but in some you will need to visit the courthouse or county offices. Calling the county offices to find out how and where they post this information would be a good starting point. A general receptionist should be able to identify which department you should direct inquiry to and be able to transfer you.

Nice...!! Thank you very much for the information... I will be calling them definitely today....

Hopefully I will be able to start sending out some "yellow letters" (or whatever they are called haha) next week....

Thank you very much again Dallin... Your help is very much appreciated... If you have time.... Stop by my sight sometime and take a look at my blog...

Glad to be of help, I hope that you will take some solid action to contact owners of distressed properties.

As investors we can provide a genuine benefit by helping people to remove some of the weight of their financial troubles. We must, of course, realize that we are dealing with a very emotional situation, and many sellers are in denial about their circumstances, or react negatively to our best attempts. The most important thing in initial communication is to assure them that we are not creditors, that we are private real estate investors, and that we are here to see if we can help them out of their problems with their property. Open ended questions to understand their situation and what actions they have previously taken to solve the problem can be revealing and helpful. We also need to let them know that bad things can happen to good people, they will not deal with someone who looks down at them and their situation.

Interestingly, our greatest competition for these properties comes from attorneys who offer them the Chapter 13 bankruptcy alternative. This is a "repayment" bankruptcy. Since it allows them to keep their property, it actually sounds better than what we have to offer. Unfortunately for those who "bite" at this solution, over 90% of those who enter into Chapter 13 bankruptcy lose their protection within 18 months, and will end up losing their property through foreclosure or reverting to Chapter 7 Bankruptcy. The attorneys are really not doing a service for them, except delaying and giving false hope.

If we go into every situation with intent to provide a legitimate service in alleviating the burden of their home payments, we can assist people to move forward in their lives and re-establish their credit as they go.

Spoken as if the words came out of my own mouth....!!

This is one of the main reasons I decided to get into RE investing... I mean other than the fact that you can make excellent profits in investing... I like the fact that you can help out TONS more people who are in bad situations... Every deal I look for and research... I shoot for those that are a win-win-win situation for everybody effected by the deal... I look for the BEST possible outcomes for everyone...

Also, the information you stated about the different types of bankruptcies and options for homeowners facing foreclosure... That info is very helpful and will definitely help out when speaking to these people in the bad predicament....

Thanks again Dallin...

Matt, I think that informing any people in pre-foreclosure of what may lie ahead if they opt to go the bankruptcy route is a service that we should provide to them.
I mentioned above that most of these people fall out of Chapter 13 protection and will lose their home either to foreclosure, or to a Chapter 7 filing. If their property goes to foreclosure, most people consider that to be the end of the story, but there are things that lenders can do that go on beyond foreclosure.
1) They can go to court to obtain a deficiency judgment, which would continue to show that there is a debt owed, although it is no longer secured by a property.
2) They can deliver a 1099 form to the borrower, which essentially shows that since the borrower did not pay off the debt, it is now considered as income. That helps the lender's bookwork, but it then requires the borrower to deal with the IRS in regard to thousands of additional dollars in "income" on that 1099.
In other words, it can be a nasty, ongoing problem that can far exceed the limits of what appears on a person's credit report. Note that I am not saying that these things always do happen, I am saying that these are within the rights of the lender to make life miserable for default borrowers. I think if these pre-foreclosure owners knew the full story, they would always opt to work with us.

Hi there

I wonder if anyone know the best source to find comps. From 30 day cash, it is finding a few similar properties then calculate average value. or ask agent. By reading the message thread, I also learned eppraisal and find comps link but their result for the same property can be very different. For FSBO, realest agent can't give comps. So my question is what is best or close to best, accurate source to find comps so that I can calculate the property?

Thank you very much

Fugui

Thanks for the GREAT information on the gastople clause. I tried looking it up on Google with that spelling and it didn't work. I tried to find out more about this clause. I guess I'll try the dictionary next. Thanks for the info. Have a great day.

Is MI a non-recourse or can you tell me where I can find this out? Thanks for the info.

I have a question regarding resale price and sales tax. Once you get a good deal by Dean's 30 day cash formula or by carol's formula(i.e Fair Market Value times (.70) equals 30% of FMV.
Minus repairs and rehab
Minus your fee (profit)ie 20k
Times (.97) for holding/closing costs
equals Maximum Allowable offer (MAO).

then if you resale right away by double closing, what is the approprite selling price(so that buyer willing to buy? is it 70% of FMV?) and do you know the percentage sale tax to pay after resale the property?

anyone can help me with answer to my questions, really appreciate. thanks

Rebecca

First of all, I see that you are relatively new in the DG family, so welcome. Second, you are already aware of the formula that Carol Stinson uses regularly to get great deals all across the country. Her formula is what she uses for wholesaling and to date she has done over 600 wholesale deals. So she is the MASTER from whom we can all learn. In some parts of the country, the initial formula (multiplying the Fair Market Value, FMV by .70) is the starting point of her calculations. Then there is the repair and rehab costs that must be subtracted from that number. But those two numbers are just the starting point because your fee must be subtracted (often a wholesaler will choose a small fee to allow their buyer to see a good profit since they will be doing all of the work and taking the risk as well). Depending on the part of the country and a variety of other factors, the $20,000 fee may be too high, too low, or just right. If the numbers make sense from the buyer's point of view (a killer deal, as they say) he or she will buy the property. If the numbers are not there, they will pass. As Dallin Wall, one of our premier coaches on DG site, says in an earlier part of this thread, we are there to help solve problems.

Getting back to Carol's formula, which you correctly shared with your question, what comes next? The holding/closing costs (multiplying .97 from the remainder). Here's where a double closing may be appropriate: if your fee is very large and you would prefer not to disclose this to the buyer. The reason the buyer is there at the table in the first place is because the numbers make sense to him or her. But that original 30% reduction (multiplying the .70) is for the buyer. But in the assignment fee you are making, say $3,000-$10,000, and a larger profit is left for the buyer and the numbers make sense, then that buyer may be ready for any new deal you can bring to them. But every day that a buyer does not show up is part of the holding and closing costs. But on a double closing, those holding and closing costs may in fact be double (multiply by .97 twice). These may be fees added on at closing from the county or other fees that are a natural part of closing on any real estate transaction.

And that, to answer your final question, depending on the state or other government entity, may also include sales tax. A double close that did not follow Carol's complete formula would be a very risky situation for you financially, as I see it, because you forgot to include several important steps in the formula. The nice thing is over the next few days or so, Carol has offered to come here to the DG site to teach us what she is doing with wholesaling and how she is doing it. This will be up to the minute ideas and training of what is working for her and her partners right now. I am really looking forward to that.

I hope this has been helpful to you. You are doing the right thing by asking questions and being part of a larger discussion. I wish you great success in your RE investing.

Be your very best always-Judy Williamson

What you focus on is where your energy goes-Kristin

With gratitude,
Patrick

Hello Dallin,
Thank you for sharing your knowledge. I keep putting myself in a dilemma by wanting to wholesale out of state, yet, not sure of the order of the steps that I should follow. I have found some properties worth bidding on, but since I do not have a buyers
Iist of any investors in those areas, I am not sure where is the best place to star; Placing ghost ads on craigslist and other websites? If and when I do have them on my buyers list, how can I offer the property if my offer is yet to be accepted, and ensure that the investor (buyerC) does not push me out from the middle ( as wholesaler)? I've been asked by investors for me to share the address so they can do the due diligence, yet, the home is still offered on sale in Zillow, Trulia, and other sites? What do I say or do to not loose the potential end buyers interest without disclosing the address and loosing the chance for the closing profit check?

Best thing to do is read Dean's "30 days ... cash". I believe it is still being offered free on this website.

Actually you don't offer to sell a property that is not under contract. You need to lock it in first then offer it as an assignment to your end buyer.

Hope this helps.

Dan

I think Carol has contract ...

look on here d g .com

student resources

forms n docs

Kel

Is there anyone in the Waltham, Watertonw, Somerville, Lynnfield Massachusetts area that's assigning right now? I want to see one done live from start to finish, It would be extremely helpful. I've literally spent 2hrs reading and its not clicking in, I learn best by watching and then doing. If so please PM me if you wouldn't mind getting together and going through the process. We can work something for your time and teaching once I place my first deal! Already excited about this

Does anyone know where I can find step by step on what to do or procedure in order to buy a property from sales by owner (without agent)? the property is in New york state. Do I need an attorney or title insurance closing is good enough

thanks

Rebecca

Read this thread Gilberto!

Wow! Kathy M, thanks for alerting me to this thread. I have been reading for the past few minutes and I can see there is a lot a lot of good solid information here.

This is exactly what I needed as I go forward in my wholesaling attempts.

Thank you.

Gilberto

P. U. S. H. (Persevere until something happens, as you told me)

Hello Patrick

I am just reading your reply since I was off the site for a while. Thank you very much for your time to answer and explain the info

Rebecca

Can someone please respond to post #511. I've wondered the same thing.

waidef, please summarize the question I went to look for the thread but too much work & too long to read.

Hello

I couldn't find related topic in the forum, can anyone share some info what need to be cautious buying multi (more than 4 ) unit home vs regular home(or less than 5 unit home. Are there any additional mandated maintenance cost i.e. snow removal, lawn maintenance cost before resale?

or you know any useful link/URL site related, please let me know.

thank you very much

Rebecca

Wholesaling is dangerously close to the activities of a Real Estate Agent/Broker, which u need a license for. Read this post and tell me the difference.

Hello D.G Family. I am a new Investor as of 1 month and 7 days ago. I have been going over the information provided in the study material and have obtained a ‘Purchase and Sale Agreement’ and an ‘Assignment of Contract’. I have obtained an R.E. Agent whom to work with. I’ve explained my strategy and technique to my R.E. I had to explain to her the working of a ‘Purchase and Sale Agreement’ and the ‘Assignment of Contract’. Informing her that im not using the Purchase Agreement that a R.E. Agent normally uses, since I am not closing on the property nor am I representing anyone, that im no R.E. Agent. She understood and is now working with me. She gave me a copy of her the Purchase Agreement she uses for me to compare with my ‘Purchase and Sale Agreement’. I included a few bullets from her contract into mine. I gave her a copy of both my contracts so she could run them by the title company she works with. Both her and the title company, informed me that my ‘Purchase and Sale Agreement’ made me seem to be acting like an R.E. Agent (which is what I do not want to be). My R.E. Agent is still working with me, but I just need to fix my P. and S.A. I spoke with an R.E. Attorney and he too informed me that I was acting as a R.E. Agent by using the P. and S.A. contract. I also explained to him my technique and he said that my approach is legal, I just need to change the way my P. and S.A. is stated. He then gave me a 2 page print out of the Arizona Real Estate Law Book: Chapter 20 (Real Estate): Article 1 (Real Estate Department): Section 32-2101 (Definitions). One of the definitions is that of a “Real Estate Broker”. Stating…

"Real estate broker" means a person, other than a salesperson, who, for another and for compensation:
(a) Sells, exchanges, purchases, rents or leases real estate, businesses and business opportunities or timeshare interests.
(b) Offers to sell, exchange, purchase, rent or lease real estate, businesses and business opportunities or timeshare interests.
(c) Negotiates or offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate, businesses and business opportunities or timeshare interests.
(d) Lists or offers, attempts or agrees to list real estate, businesses and business opportunities or timeshare interests for sale, lease or exchange.
(e) Auctions or offers, attempts or agrees to auction real estate, businesses and business opportunities or timeshare interests.
(f) Buys, sells, offers to buy or sell or otherwise deals in options on real estate, businesses and business opportunities or timeshare interests or improvements to real estate, businesses and business opportunities or timeshare interests.
(g) Collects or offers, attempts or agrees to collect rent for the use of real estate, businesses and business opportunities or timeshare interests.
(h) Advertises or holds himself out as being engaged in the business of buying, selling, exchanging, renting or leasing real estate, businesses and business opportunities or timeshare interests or counseling or advising regarding real estate, businesses and business opportunities or timeshare interests.

(i) Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, leasing or rental of real estate, businesses and business opportunities or timeshare interests.

(j) Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate, businesses and business opportunities or timeshare interests.

(k) Incident to the sale of real estate, businesses and business opportunities negotiates or offers, attempts or agrees to negotiate a loan secured or to be secured by any mortgage or other encumbrance upon or transfer of real estate, businesses and business opportunities or timeshare interests subject to section 32-2155, subsection C. This subdivision does not apply to mortgage brokers as defined in and subject to title 6, chapter 9, article 1.
(l) Engages in the business of assisting or offering to assist another in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government.
(m) Claims, demands, charges, receives, collects or contracts for the collection of an advance fee in connection with any employment enumerated in this section, including employment undertaken to promote the sale or lease of real property by advance fee listing, by furnishing rental information to a prospective tenant for a fee paid by the prospective tenant, by advertisement or by any other offering to sell, lease, exchange or rent real property or selling kits connected therewith. This shall not include the activities of any communications media of general circulation or coverage not primarily engaged in the advertisement of real estate or any communications media activities that are specifically exempt from applicability of this article under section 32-2121.
(n) Engages in any of the acts listed in subdivisions (a) through (m) of this paragraph for the sale or lease of other than real property if a real property sale or lease is a part of, contingent on or ancillary to the transaction.
(o) Performs any of the acts listed in subdivisions (a) through (m) of this paragraph as an employee of, or in behalf of, the owner of real estate, or interest in the real estate, or improvements affixed on the real estate, for compensation.
(p) Acts as a business broker.

The 2 sections, *i* and *j* stand out because im using the ‘Purchase and Sale Agreement’ and they seem to apply. By doing a ‘Purchase and Sale Agreement’, am I not directly procuring prospects to the result of a sale of R.E.? Also, am I not assisting in a negotiation of a transaction intended to result in the sale of R.E. interest? I know im selling my right to purchase the R.E. property, but by selling my interest in purchasing that property, this will result in a sale of R.E. Per definition of (i), identifying what a R.E. Broker is, how am I not in breach of acting like a R.E. Broker?

Again, the R.E. Attorney I spoke with stated that strategy is legal and applicable, but it’s the contract that portrays me as an Agent/Broker. I was also informed by both R.E. Agent and R.E. Attorney that it takes 5, 6 or so years for lawyers to catch on what’s going on and see that some contracts were portraying an individual like a licensed Agents/Brokers (or other), and it takes them (the lawyers) that time frame to notice it then go after that person with a lawsuit. I live in the state of Arizona, and if any fellow Arizona residence have been using a ‘Purchase and Sale Agreement’ and an ‘Assignment of Contract’ for more than 6, 10 or even 15 years without any incident with the law, I would GREATLY appreciate the feedback. It's a lengthy post, and therefore thank you all for your patience, time, and response.

I am a new investor as of a month and 7 days ago and have yet to do my first contract. I have the drive and motivation to get out there and succeed, but I’d like to know that im doing it legally and not breaking any laws by acting like I am licensed or portraying myself like a licensed professional.

bump. Respond to previous comment Please anyone!

I applaud the fact that you are determined and taking action. There are several points here where you are confused.

1) If you are putting in an off through a realtor, you WILL be using their state PA form. Your PA is used when you are making offers to FSBOs and there is no realtor involved.

2) You DO NOT tell a realtor the technique you will be using! They don't understand and always tell you it is illegal. As far as they are concerned, you are a "cash buyer". Just always make sure that you make your offer in yours or your company's name "and/or assigns".

3) You do not say what you told the realtor you are doing (except not closing on the property). If you told them you are selling the property to someone else or just finding someone else to buy it, that IS illegal. You are getting the property under contract and then selling your position or your rights in the contract. EXTREMELY IMPORTANT to ALWAYS put it this way when you ARE explaining. This is legal.

Good luck!

Karen

Thanks Karen for your response. You always give great advice. However, in my previous post (#623), points a, b, and c, among others, sounds a lot like Wholesaling. In your response, you stated that "If you told them you are selling the property to someone else or just finding someone else to buy it, that IS illegal". Isn't that what we're doing? Point (c) mentions negotiating or attempts to negotiate the sale or exchange of business opportunities. Isn't that one of the main parts of Wholesaling? I'm not nit-picking, I'm just trying to obtain more clarity when the subject of legal/illegal may be an issue. For anyone who cares to respond, please refer to a few of the points in my previous post (#623) first, then explain the difference. I'm really ready to dive into this Wholesaling.

Thanks In Advance!

No, that is NOT what we are doing. It does sound like what we are doing. And in the A-B contract, we ARE negotiating the contract as far as the terms of the sale, but THEN we are actually selling our "position" as the buyer, NOT the property. It is a very thin line, so you have to get that clear in your mind, so that when you are challenged on the legality, you know that you are in the right.

Be sure to get it clear in your head that what you are selling is "your position or rights in the contract". Not the property.
Simple as that. And that is legal without a license.

Best wishes!

Karen

Thanks Karen. You're right, it's a very very thin line between Wholesaling and the duties of a Licenced Broker. So thin that it makes u wonder. But I believe in Dean's teachings and I'm ready to move forward.

Thanks again!

i am A REaLTOR and am learning for my own personal use. I have to make certain not to violate any of the ethical considerations I accepted when I joined NAR and don't believe that will be a problem. I also intend to become a very investor friendly agent but only when representing myself or the investor because it is my fiduciary responsibility to look after the seller if they are in fact and contract, my client. That said, when I have a seller-client whose primary consideration is timeliness of sale, you can bet I'll work with cash investor buyers to get the best deal for my client while still keeping the investors interest.

RJ

Hey,

we are a real estate service that helps people like yourself sell their house in 7 days or less, by buying it.

I'm looking for an agent who is working with real estate investors.

I want to buy, fix and sell. And I want to make a $20,000 to $30,000 profit.

Let's look at the listings that are "starter homes", properties that are listed "as-is", "vacant", and "price reductions".

Do you have a list of cash buyers of real estate within the last 90 days?

I'm happy to work with you together!

Please contact us if you need help with your house-selling.

Thanks!

Greetings,
Diversity Realty, LLC.
Udo Ginczek
biguseof@****