Offers Coming In At or Above FMV - What to do!

I just recently received Dean's new book--less than 2 weeks ago. Before I even finished reading it a pre-foreclosure lead fell into my lap from a friend.
Needless to say, I am excited and nervous.
Where do I find the form to make the offer?

You guys are terrific. Thanks for the great info.
Corvett

Doe you have a pre-approval letter for all of your offers?

I dont usually attach one unless specifically asked to do so.

Hi guys

I just recently got my book in the mail. I found a great property that's going for less than 50% FMV and am planning on submitting an offer. I contacted my new realtor and he is asking me for a pre-aproval.If I'm going to assign the property what do I tell him? I do have at least $2,000 in the bank I could show as earnst money. But I'm stuck about the pre-approval letter because I have bad credit. Please help me overcome this hurddle.

Thanks.

There is a Forms and Doc resource in the left hand panel of the home page here is the link:

http://www.deangraziosi.com/resources/real-estate-forms

Angela

What a thread! I can't believe these realtors!

Find a new relator. I put an ad on craigslist and have had several realtors ask for my business. I know I've heard this before on here, but you should pre-qualify them first. Let them know what you are going to be doing and ask them if they are comfortable with it.

Hi,
I just got Dean's book Profit From Real Estate Right Now. I think it is the best book I have ever read. I need to re-read it of course, but I think the book, this website and all Dean offers is wonderful. I am ready to change my life with Real Estate! I do have a question, can anyone tell me what our responsibility is when it comes to title work. I haven't seen anything on title work here or anywhere. If we find a great deal and are going to assign it to another investor, how do we make sure it is a good deal title wise? If the title is full of liens, obviously it wouldn't be worth it to another investor. Thanks for your help. I have found this forum very insightful.
Amy Jo Strom

Find yourself a good title company and let them do what they do best. Sistreat just posted on one called Old School. Look it up on here

Thank you for posting this letter. I have not found a realtor this way. I have been contacting the realtors on the houses that I looked at when attending open houses. I have been taking my own contractors to the homes with the agents present. On one property I will be going back a third time. Is this an unusual way of doing this? I was under the impression that the realtor had to be present when you looked at a property?
Kat

I just have a simple question. I understand when you purchase a house, lets say with cash, that the realtor receives a percentage of the total sale price. What happens when you use a realtor to find properties to assign or wholesale. If I never actually buy the property, but instead sell the contract to another investor, how does my agent make a commission? Also how much of a commission is normal? Thank you.

I didn't even think about the buyer trying to get rid of my realtor to save $. How is the clause worded?

"Assignee must use assignors realtor to complete purchase of said property."

Does this mean that the realtor representating the assignor get 3% commission not only from the assignor but another 3% commission for representaing the assignee? Or the realtor only get just the 3% commission for both the assignor and the assignee?

LS

If your realtors commission was originally 3% then thats what they will get, if it was 6% then thats what they get. If you assign it you are out of it. But the person you assign it to MUST use your realtor and they and/or buyer are responsible for the realtors commissions. That way you have collected your assignment fee and your realtor is paid and the new buyer is satisfied with their purchase and the seller is counting his money!

CLASS DISMISSED...lol

Thank you there my friend! The reason i've asked is because i haven't used a realtor to do any of my closing. I've used my RE attorney in all my closing but now i'm moving into a phase where i need to utilize a realtor on more deals. Yes, class is now dismissed, lol

LS

Just curious. With the investors(my end buyers) that I am looking to assign deals to haggle over just what they would pay me as an assignment fee. If they are already "squeezing" me on my fee, it is unlikely that they would shell out another 6% to pay my realtor.

How do you get your end buyers to pay both your fee and the realtor. My end buyers are looking at me as their "realtor" since they are paying me.

Your thoughts?

Neil

Hi,

The way it works with an assignment is that you and/or your agent are writing up the contract and submit it to the seller. When it is accepted, you assign it to your end buyer, and the original contract transfers to your end buyer. The seller of the home (if listed with an agent) will be the one paying your realtor their commission not your end buyer so all you have to do is make sure you add the clause in to your assignment agreement to cover your realtor and she/he will be paid.

You just make sure your endbuyer doesn't have a Realtor.The Seller is Paying the listing agent and your agent.

Anita,

Thanks for the great original post. You make an excellent point and observation. With lenders now very afraid of, and running from subprime lending practices, using your strategy of listing every known defect and potential problem, it seems that they are willing to short sell some of these properties to REI's. Therefore, not offering "subprime properties" to the average home buyer and reducing their exposure to risk down the road.

Excellent strategy and thanks.

just a refresher

Anita - great help here thank you!
About finding a good realtor for us investors - network at your REI Club. More of them will understand the game.

This no longer works with REO's, they are requiring 10% down as earnest money, no exceptions. Why they don't allow the $100 or even $500 for earnest money and then a deposit of some sort is very puzzling to us. Any ideas on how to finance earnest money?

We make offers on REOs all the time that do not require 10%. These must be Fannie Mae properties you are looking at. And you are making a CASH offer right? OR you might need a new agent.
However, if you want to be taken seriously on any offer with a bank, putting up $100 to $500 is a JOKE. Unless you are offering on a $15,000 property of course.
You can get deals with very low earnest when dealing directly with UNLISTED motivated sellers. Just like Dean teaches. No banks or agents involved.
What did you LEARN after $50,000???

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Hello~ and welcome to DG!

Earnest Money or "EMD" is a Deposit!

If you're shopping off the MLS, that is, dealing with institutional sellers (banks, gov't. owned, & retail seller properties) you will need to play by those [their] rules. They require traditional EMDs of $1,000 or better. Period.

(Not only will a lowball EMD lessen your credibility, it will insult them to some extent).
Remember you are COMPETING with multiple buyers.

OFF MARKET MOTIVATED SELLERS are your BEST bet!
~Look for the "hidden" treasures! ---Individual Sellers vs. Institutional Sellers

PS. Comb through the "Real Estate Forums" here. There's plenty of FREE information, content, suggestions, instructional how-to's, & personal success accounts, as well as, blunders, etc. in the DG.com Archives.
Right here under our noses. For free. :]