Made 1st offer today on a REO

I don't know, could be any day!!! I am helping my mother right now work up a SFM with a rental property she has. Does anyone have a great one or two page contract for this? Is it cheaper when you go to the lawyer to close if you already have a contract filled out? What would you all recommend as interest rate for this and any other things I may need to know for my first SFM?

Thanks,

Brian

Thanks Sandra and Joe, I really appreciate the encouragement and all your information. I'm hoping to get into some student rentals soon. I live within 50 miles of 5 colleges, so I think that would be a great cash flow business. If anyone wants to invest feel free!!

Brian

Congrats on your 1st offer! We all hope you get it.

I have found a nice little house in a nearby college town.
1100 sq ft
2/1
Large L/R
Kitchen

I called the owner tonight and spoke to him for a while. He is anxious to sell. Is asking $59K, but has had since Jan 2009. The great thing about it is: He INHERITED it!!!!! Then he informs me the 2 car detached garage and the house next door to it was INHERITED also!!!! The second house needs alot of repair and has a renter that hasn't been paying. He's very frustrated with that. He's retired. I'm thinking very low offer for all. Maybe $35K?
The nice house just needs a cleaning and can be rented to students for $600-700 per month. Give me your thoughts on this and of course wish me luck. I am hoping to work out a no money down land contract where I would pay him 10% interest or so. Hey, good interest income on money that you are not even really loaning!!

1900 sq ft
2 story
4 BR 1 1/2 Bath
Enclosed front porch
back deck

Thanks again,

Brian

Brian good luck with your first deal. On the next one where you need demo work done. Call your local fire department. They may be able to help you. We do quite a bit of that where I work. We call it training and then all you have to do is get someone in to pick up the mess. You usually pay by the pound for pickup, so if most of the weight goes up in smoke you save $$$. Regulations are different everywhere. The fire guys win, you win. Win-win just like Dean said.

PS. Sorry Brian, I had not looked through all the posts when I sent this. Repeat info sucks. Sorry to all.

Does anyone have a good short (1-2 pg) IEE contract. I am either going to pay cash or find buyer to pay cash. Would like to have no earnest money down, just have possession of to clean and show to potential renters or buyers. If you have such a contract could you post it or PM for my email address.

Thanks,

Brian

Well, I went and looked at the 3 properties and talked with the owner. He wants $79000 for the 2BR house and the garage. The third property is tied up in courts. The lady who lived in it came up with a notorized paper stating that the deceased man wanted her to have it upon his death. The will had left it all to the man I am talking with. He is asking the $79K because thats what a REA told him he should ask for it. I have offered him $40K for it and it won't cost him another penny for anything, providing that I can close next week. I am wanting to rent to college students starting fall quarter next month. I tried to explain to him that by not selling now and putting it into realor hands that he might get more money but it may be next year before it sells. Hope that helps him to make up his mind.

Brian

Great strategy Brian. Something all of us should consider when placing offers. God Bless.

Sandra

Great strategy Brian. Something all of us should consider when placing offers. God Bless.

Sandra

WOW that so great to hear, working on my 1st deal right now but keep at it strong!!!!

peace & love
Always keep at it strong
Every Day

Hi Brian,
Everyone is entitled to their opinion. They speak out of fear. Fear is only the absence of knowledge. But it doesn't have to be your reality! You are correct to not respond to her negativity. But I would send her or him a quick note to let them know that you hope that somewhere down the line they could see the missed opportunities all parties would of had. And move on. I wouldn't allow them to think they created self doubt or fear any step of the way in me. And then move on to the next realtor who can see potential. But end it on a positive note. Continued success..........Lubertha

Well, the house with unattached garage fell thru. I made offer of $35,000 and take over all costs from that point on. The man was very insulted at the offer and said he would just keep it and maybe rent it out himself. I thanked him for showing me the property and wished him luck. I guess I did good on the offer since he was insulted and I was embarassed to make it. LOL!! I saw a post where someone said that if you weren't embarassed then offer was too high.

I have been looking at a couple of condos in another college town near here. I have yet to speak with owners. So, maybe in a few days I'll get to make offer on them. My offer was accepted today on the Freddy Mac house that I put offer on a couple of weeks ago. The one that had the leaky basement and some mold. Offered $45K and they provide water tap and allow $3k to fix basement. They came back and countered with $40K and I accept as-is and pay all costs for anything that needs repaired. I have 14 days to get inspection and back out if I want to.

I'll let you all know what happens with it.

Brian

First congrats on your offer being accepted. To move forward you have to decide what you will like to do with the property; fix and rent, assign, do a double close or keep as personal property. Your decision will determine the income potential of the deal. As always Brian, we support whatever you decide to do. God Bless.

Sandra

Thanks Sandra for your support. I am going to have to get leaky basement, mold and water tap taken care. We will be painting the whole house and if we rent it, will the leave the hardwood floors as is. They really need refurbished or carpeting put over them, but with renters I don't think it would be worth the investment right now. I hope the leaky basement doesn't cost over $3K to fix. We will find out Friday about that.

Brian

I just finish reading the chapter on FMV you did a good job. Congraziosi!!!

Well folks, I got my inspection on Friday. It's not as bad as I thought it was. There is mold in the closets, but only on the surface. So it can be taken care of easily. We will then paint the walls and have new carpet installed. The leaky basement can be fixed for around $2500.00 (that's a relief). I'm not even gonna put in the water tap because the place has its own well. I have even better news!!! I've already got a buyer!!! They are a couple with two small children and they will be getting the firt-time home buyer credit. I am selling for $80,000. My total cost should be between $45-$48K. Over #35K profit. Not bad for a first deal, huh? Now I've got to find my second one. At least I'll have money to work with now.

Brian

Way to go|! That all happened so fast. Did you have the buyer lined up, or just happened to run into them? Good luck on the next one.

Cathy

No, I didn't know if I would sell or have to rent it out. As soon as my offer was accepted, I put ad in paper and for sale by owner sign in yard. I received about 10 calls on it and had 3 that were very interested. I got to show it to them the same week. They all made offers and the ones that are buying was already approved for loan of $150,000. They are going to give me $10K down on Tuesday, which I will be using for the repairs and such. They have already told me what color paint they want in each room and will be picking out the carpets this week. I am closing on the house Wednesday. I will have the painting done by weeks end, I hope! The workers will be there Thursday to start work on the basement leaks. We are scheduled to close with them on the 24th of Sept. Then on to the next big deal!!! I have 3 other offers in right now that should bring another $20-$25K each if I get for offered price. I couldn't have done it without Dean's books and all the help and encouragement that I have gotten from all of you!!!!

Thanks,

Brian

congrats on your offer accepted and on already getting your buyers.

You are an inspiration to us all! That shows all of the naysayers that this business can be done. Great job and see you at the top!

They say when you complete your first deal they start coming faster so get ready to do one after the other!