Offlineso as far as assingments go I have a couple of questions..
1. How much money do you normally put down? Will someone really let you put a 100000 piece of property under contract with 100 dollars down?
2. What if they have a realtor? Is the realtor going to do the same thing and let you lock the property up with that little of an investment? It seems the realtor would be worried about selling the property themselves and weary of letting someone lock up a potential money maker with a small investment for a down payment without credit checks, qualification, etc...
3. Do you have to pay for a home inspection? I'm thinking the buyer would want to know exactly what all was going on with the property in terms of conditon but wouldn't want to pay for that himself if he wasn't sure he would purchase it. This seems to leave that burden on you.
4. Where do you get the properties? Off the top of my head it seems like the MLS listings would be the place to find plenty of peoperties and foreclosures. Does that not work, because I rarely see many people talking about that.. Does this have something to do with an agent having the property?
5.. Last; may have been covered earlier, but how far down in value are you looking for in the property? I read 30% somewhere on here but is that of what the property is worth or what the properties in that area are selling for?
This is my first post and I'm new to the boards and looking to get involved in investing if I can get a solid grasp on the road to success. Any feedback would be appreciated. Thanks
yea im hesitant on that too, i dont see how a seller be comfortable accepting $500 as EMD when your buying the property for lets say 300,000.
$100 earnest money..?
You never know unless you ask. I can tell you that the last 8 properties I've locked up (they were FSBOs by three different sellers), I had to insist that they even take $100! They all were like "No, no, I trust you". But I said we need to have SOMETHING put down to bind the contract. They would have been happy with $1. If you are buying an REO, you probably won't get away with that, but you just never know unless you ask.
Rina
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I humbly tell you that I literally put my first contract deal with the seller with no money at all, I had an agreement binded with no money at all, honestly I didn't have any money at the time but the seller didn't know that, but he O.K. it. He really wanted to sell, and yeah I was a little nervous throughout the whole procedure but $10,000 later I felt a confident level that was indescribable.
Buy, Sell, Rehabilitate, and Manage Properties...
-PEACE OF MIND PROPERTY SOLUTIONS, LLC.
If they have a Realtor the majority of the time they have a legal binding. You don't know for how long but I personally find my owner properties driving around everyday after I drop off my last child to school and spend a couple of hours at least to 11:30 - 12:00 p.m. looking for distressed properties in different areas and write them down in a notebook, come home and find out who own's these properties. Contact them direct... hear them out!
Buy, Sell, Rehabilitate, and Manage Properties...
-PEACE OF MIND PROPERTY SOLUTIONS, LLC.
Haven't had a whole lot of luck talking with Realtors(yet).
Prefer FSBO's if at all possible(I drive quit a bit too).
Troy
When looking at placing your EMD, I normally go for 1% of the FMV of the property, sometimes less will be accepted.
Home inspections are always important especially if you are looking to keep the property for your own portfolio. If you are simply looking at assignments then the end buyer will be responsible for an official Home inspection.
I believe in bringing a notebook along to all properties and writing down my thoughts on the condition of it and and how much repairs would cost from my personal experience, but it is also good to bring a general contractor along for a walk-through.
As for looking at properties in the MLS, In my humble opinion, and experience that would be the worst option out there. The are literally hundreds of ways to find properties but I would never resort to hunting from the MLS. I do use multiple realtors myself, often playing them off each other on the same properties to see what info they can get me... (may not seem totally ethical to some of you) but I find that I get more info that way!
Look into pre-foreclosures and REOs as other options. I have tried many auctions myself and HUD properties are also available at great discounts in some states so take a look at them also!!
Jules