SO, MY FIRST OFFER WAS ACCEPTED.....

congrats!!!!!!! Good luck.

thanks man

Wow - sounds like you really found a great deal. I personally have not heard of an appraisal clause, but of an inspection clause. I'm sure you will get other feedback about that here. If you didnt already - run the comps for the neighborhood - thats always a good indicator of value too. Use the Total View Tool from DG, zillow, electronic appraisal.com, or even better -the listing realtor you are working with. They can do it in a flash. But unless you find something major wrong in your inspection sounds like you cant loose! Good luck and keep us posted!

Hi Larry!

Congratulations! What a great deal and great job on taking action and making it happen!

Before you sign a contact, you can essentially add any addendum you wish to the contract, though that doesn't mean the other party will sign off on those addendums. Just like the price, everything is negotiable. My past experience has been that if I'm using a loan (mortgage) to purchase a home there is usually standard in the contract a clause that the sale is contingent upon being able to secure a loan for the property. If the property doesn't appraise for the sale amount and the bank won't give you the loan amount you need because of that, then that means you haven't been able to get the loan and that is an exit strategy from the contract. In turn, any money you may have put down should be returned to you without penalty. If the contract doesn't indicate or say any of that, then you can write it in as an addendum and see if the seller agrees to it.

Now, a couple more things. Since you went straight to the listing agent keep in mind that the agent is actually working on behalf of the seller and will first and foremost "watch out" and "take care" of the seller, not you. Be careful of the things you say to the agent...don't disclose too much that the agent doesn't need to know as the agent will use it to the seller's advantage (in other words, a saying my mother use to say "don't show your underwear in public!"). The real estate agent's main goal is to get the deal done so that he or she can get paid and for the biggest commmission possible -- which means, she's not working to make you the best deal, that's up to you.

Also, even though it's long and seems complicated READ the entire contract before signing it. Don't let ANYONE hurry you or tell you "this is just a standard contract; no need for you to read the whole thing." WRONG! This is a legal document that you'll be signing and obligated to. You must be sure you understand it and not be surprised by anything. It's best if you can have a real estate attorney look it over first and advice you---they are worth the money every time--but if that's not possible, ask as many questions you need to ask and take as much time as you need doing this until you are completely satisfied with the answers. In my opinion, nothing is ever standard. I've written things into contracts that aren't standard or I've crossed out some standard words and sentences because it didn't favor me.

All my best to you. It sounds like you have a really great property and I believe everything will go smoothly for you! And enjoy the process because it's a lot of fun too!

Nancy D.

I sure hope all works out well for you. If all is good with the inspection and you close on this property with no problems I wish you luck in creating a positive cash flow for you and you family to enjoy. Best of luck!

Very glad to read of your first deal !! Let the adventure begin..

Randy

Fantastic job! You wasted no time, thats what I like to see!! See how far (and quickly in this case!) determination can get you? Laura and Nancy have provided you with some excellent direction. It sounds like you're doing great tho!

I can't wait to hear how everything plays out! Be sure to keep us updated on your progress with this deal and continuing on to many more! Good luck!
-Mike Hutchins

Congratulations on taking action and getting your first deal. Sometimes the first deal can be the hardfest one. It is true that dreams can become a reality with effort and consistent hard work. It sounds like you are well on your way! Please keep us posted on your progress and continued success on all your real estate deals! Way to go! Believe and Achieve! - Joe

Job well done whit that attitude and action you will be on the top of the hill really soon.One ? where did you go to get a listing agent and how did you whent about asking him/her to give you the info on the propertie.Thanks olot and best of luck to you.

I've often told people that thet 1st deal was the hardest to close. Now that you've done that...you're on your way...much luck and success in the future.

Regards,
Nick

Glad to see you taking action even without a REA on your team. Keep those deals coming!

Amazing how a little knowlegde can make so much difference in our lifes.
Keep it going.
Daniel

Nancy D certainly did a great job explaining the details. Larry, you said you will do it and you did. You acted on your plans and acquired results. For this you must be commended. Lubertha and I celebrate this success venture with you. May you continue this journey to your next deal. God Bless.

Sandra

Just wanted to congrat on your first deal and future ones! I just finished reading and looking...praying its as good as yours!!!!!! It feels scary but can't wait!!!!! see ya around.

Congrats on your deal like Nancy said you can add the addendum house must appraise for at least the agreed upon amount of sale. It is just another exit clause for you if it doesn't. Esp if you are in an area that your not able to find a fmv on total view, zillow or eappraisal. If you are financing it the bank u are using will require an appraisal if you are paying cash strike a deal with an appraiser to add to your team. IE your going to look at X number of houses a month and put in X offers and would like him to give you a general appraised value for X amount on each house these guys are making any money either if houses aren't saling so if you can offer him a steady income he maybe willing to discount appraisals if he knows he's going to get a certain amount from you each month. Just a thought.
Continued success
Donna

My topics on the front page??? Yayyyyyyy!!!

any way guys, So we just signed the papers, Altho we had to take a lil higher price to not pay closing, we settled at 126,000, As far as the aprasial contingent we get an apprasial in five days so around wensday i'll let you know. and if we are unsatisfied we can back out of the deal before 17 days.

Alot of people have been telling me that the banks wont let us take out the equity right away, which is kind of a bumer but we'll still ask anyway. if not we'll rent ona 6 month period, with a chance to purchase at 160,000 depending on the amount apprasied for.

we'd like to buy and hold, and pull equity out when ever a good deal come out so we can pay cash but, its all in good time, plus it just feels good to get a deal done...i mean REAL GOOD. Ive been on here twice a day sometimes no ones on and i just read every topic. and with deans books and some action thing happen.

thanks again guys. you rock. i couldnt have done it without you.

i'll keep you posted as time goes on....

TO any one whos just started......IF I CAN DO IT......ANYONE CAN.

Congrats!! Larryshouses on a job well done.

Brian

So glad to read your deals moving forward. Very exciting! As far as pulling out money - I dont know where you are located or if rules are universal, but my lender will allow me to pull out only 70% of my purchase price. That didnt allow me to hold either - so I am selling this one and plan on leveraging myself for buy and hold on the next. But however you work it you have a winning situation so congrats and enjoy the ride! Really happy for you!

Hey Larry,

I hope you got the stuff I sent you through PM. Keep up the good work on negotiating, and if you don't feel comfortable with price, negotiate some more! The worse thing the bank could say is "No." Remember if the appraisal comes in at your buying price you can still try to negotiate with the bank and tell them that you need to "fix" a few things and knock a little more money off the price. Keep us posted on your appraisal and good luck Wednesday!

KimmyJ
Press on...

Hey drew.

Ive actually been lucky to partner up with someone and were going in on everything together.

He's pre appoved for 160,000.
my exit stategy is i have seventeen days to back out after signing, with a five day appraisal as well. just in-case the house isnt worth what we bought it for.

as well as a re-inspection clause. so five days before the close of escrow if we re-inspect the house and it wasnt as before we can back out.

if its appraised for a lot more than we exspect than we'll flip it if not were going to rent it out.

thanks drew.

I bought Deans book well over a year ago and I have been scared to pull the trigger. I finally put a bid on a 4bdrm 2 bath hud home and won this bid. The price was 92.5k. It needs about 70k of work but when all is said and done it will list for around $290k which is a potiential profit of 127.5k. Not bad for my first house. I may even move into it and take the equity out to buy another one. (scared to do that also)I know their is a lot of money in realestate but its so hard to pull the trigger for fear of losing what you already have. I guess sometimes you just have to take a chance to better your life, although I didnt fully complete Deans book part of the book, Deans blogs, and reading these posts helped me take the step. Thanks to all!!!!

Rich

Did You join the Academy for additional help? I got the book with hopes of being armed with enough info and how to to get me going. Was it enough for you?
I am very motivated to get started but taking the 1st step is a little daunting. What was your 1st move?

tho the books alone was enough for me.

i would recomend the acadamy to anyone...i just didnt have the money to start..???

if i could get a deal done i would gladly pay to get the acadamy...

just follow the book and read up here...ive learned so much from just being on here everyone is helpfull.

its all about actions.....

make offers!!!!!!!!!!!

For next time:

“It is expressly agreed that notwithstanding any other provisions of this contract, buyer will not be obliged to complete the purchase of this Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless Buyer has been given, in accordance with HUD/FHA or VA requirements, a written statement by the Federal Housing Commissioner, Veterans Administration or a Direct Endorsement Lender setting forth the appraised value of the Property of not less than $____________
[The dollar amount to be inserted is the sales price as stated in this agreement]. Buyer will have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation”
You can always add more to the addendum, but this is the minimum, in order to allow you an out, and at the same time retain your right to proceed; your choice.

Thanks a bunch.

i knew it was around but never seen what it was, nor did i know how to word it myself.

i appreciate it very much...

Congratulations on your progress and for sharing this information. I wish you much success.

Congratulations Larry!!! This is truly a inspiration to those of us that are so fearful of just starting out. Thank you for sharing with us, you have given me hope!I wish you the very best!!!
Deborah Hernandez

btw....my last name is hernandez!!!!!!

Congrats to you and thanks for the inspiration.
-Scott

^^^^ thank you.

im glad i could be some inspiration.