OfflineToday I spent an hour or two in the library. I looked at tons of newspapers in search of finding investors. Today my buyers list started off with 1 investor and now it has 6. Im working on assigning a contact on a property I found today. I found a 3 bedroom 2 bath no garage fixer upper. Correct me if Im wrong but the golden part about this deal is that its 125,000 for 14 acers of land and the house. The owner explained to me his wife dies 1 month ago and he wanted out of the house mainly for that reason. He told me that the property had no deed with the city (I dont know if I said that right)so you can have animals like horses and cows on it. One downfall I believe is the properties location. The ower told me there were no other houses around it. Also he said it needed a paint job and a few other things done. Should I get the rights to buy with my contract saying and/or assigns and then present it to all my investors on my buyers list? Or should I tell my investors before I draw up a contract? Should I go see the house? The owner also said hes willing to negotiate and lower the price from 125k. Thank you for your help. God Bless
My First Deal
Posted on: Mon, 01/12/2009 - 00:09
Go look at the house sit and talk to the owner. write down the repairs needed. estimate what it will cost to fix them and come up with a price. Then explain to the owner the reason for your price. I don't know what the going rate for a house and 14 acre's where you live But it sounds like a great deal for a house with 14 acre's. don't forget to and/assign on your contract. I would get it under contract before offering it to any investors.
Good luck!!
Isaiah,
good job on all you're doing.
There is a great checklist SOMEWHERE in here that I'm trying to find for you. (I can see why it takes some doing for the new people to find stuff. wow)
Anyway, first get your comps (comparables of other similar homes in that location that have sold within the last 30-60 days). Then go see the house. Do a walk-thru with the inspection checklist (in your head, if possible, with maybe a little notepad). Talk to the owner. Build some rapport. See what kind of deal you can negotiate. Maybe with some good old seller-financing involved once you get to that magic number.
You could give your investors a heads-up and find out if they would be interested first (give them the details without revealing the address at this point), but if I were you I would still go check it out. Good practice for one thing, and it might turn out to be a great deal.
If you won't be working with a realtor, have a RE attorney to draw up the contract for you. I have bought places on my own FSBO, but I probably have just been "fortunate" not to have run into any troubles.
Also you will want to do a title search (and have the seller provide title insurance) once you decide you want to go forward with an offer. I'm sure the attorney will advise you in these areas, as well.
Excited to hear the outcome,
Rina
P.S. And yes sign the purchase agreement with your name plus and/or assignee (that is the most recent Dean has told us to use). A private seller should have no reservations about this. If he does, just tell him you are not sure if you will be buying it yourself or passing italong to someone else. OR if you have an LLC already you can say you're not sure if you will be putting it in your name or your company name.
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Thanks B.C. and Rina. As of now I am trying to figure out how exactly to go about doing this title search and also how to get comps.
The property was sold to the owner in April of 2007 for 85,000. The own has it on the market for 125,000. Zillow.com estimates it at 177,500. What number should I offer the owner to settle and sign my Agreement of purchase? Then how much more should I sell the rights to purchase to my investor?