Offer Approved, Now What?

MJ, What are you planning on doing with property once you have it? Rehabbing or reselling? If you are reselling, who are you planning on selling the property to? Do you already have a buyers list? The person you are selling to would want to do the inspection etc. So you don't necessarily need to worry about it, but you can't close until you have this figured out. The transactional lender cant help you they are assuming you know what you are doing. When you are offering on properties, have an exit strategy/end game in mind. In other words before you offer what is the plan, if it is to rehab and sell get that lined up. If it is to hold and rent, find some. If you are planning on flipping or wholesaling to another person, you should have the person lined up before hand. Believe me I know, I had to back out of deal because I didn't have my buyers and what they were looking for before hand, and I couldn't find any buyers for it when I needed to. I was out the inspection money, but a much bigger lesson was learned that was worth more than the money. GET A BUYERS LIST.

Cathy

Be careful what you wish for---You might get it. You have had the material for over a year, you should know the book by heart. Do you have a buyer list set up yet? Do you have an exit strategy in place in case you can't go through with the deal? Don't worry about inspection fees, they are your option. Appraisal fee can be rolled into your mortgage. I have a feeling you are about to learn a lesson. Be ready at all times, and stay on this site. There is a ton of info here all for the asking. I am curious as to how this plays out. Good Luck and don't give up....Jan

The only thing I have filled out is the offer forms. I haven't had a chance to fill out a contract to put in an exit strategy and from what I've been told, I'm not going to get that chance until closing. I feel like I'm on the down hill slide and picking up speed heading for the edge. I wasn't expecting this and now everyone seems to want things to be done right now. Oh well, what can you expect when you get bits and pieces of information and try to make since out of it. Just because something works in one place doesn't mean it will work everywhere. It would be nice if someone could have all the information ahead of time then you would know exactly what the process was specific to the area you live in.

MJ

Hey MJ,
I think you are unclear what is meant by an exit strategy. That has nothing to do with contracts. It just means - how are you going to get rid of the property? You have to know this before you make an offer. The basic choices are: 1.) to assign the contract to a wholesaler - generally they want 30-50% off the fair market value. You need to have a list of buyers put together before you begin making offers. You can find buyers at real estate investment clubs and at auctions. You can also search on line with "I buy houses - your city name" and your get a bunch of hits. Call them, ask what they are looking for and then find the homes that match and put in offers.
2.) Keep the house and rent it for a positive cash flow
3.) Rehab (if necessary) and resell the house.

All of these things are layed out in detail in Dean's books. You don't have to operate on bits and pieces of information. You have to take this seriously and do your homework and study to succeed.

Where you live has nothing to do with this. The process is the same everywhere and there is a market everywhere - you just have to figure out what types of properties and deals work where you live. But I repeat - the process is the same.

MJ, what was that last post all about? Let me start by saying WE are here to help and support one another, no one can physically hold your hand! You did the right thing by posting your situation and asking for advise. It was answered. Read through whatever chapters you need to and listen to the advise of the members that responded. Look at their badges, these two members have earned their "DEAL MAKER" badges and I would expect rightfully so. Now is not the time for self pity, now is the time to dig in and "MAKE THIS HAPPEN". Fear is nothing more than a feeling. You feel hot, you feel cold, you feel scared. Use that as the motivation to keep moving forward. If you need to write out on paper what you've done and what you need to do. The prize is right there in front of you, reach out and grab it, it's yours. I look forward to reading your next post when you tell us how good it feels now that you've got through this deal. Take care and happy investing.

lbrown

Hi Cathy,

I'm a new guy here. I have a question for you. Where do you get or find a "BUYERS LIST"?

Regards,

Mike Phillips

Hey Mike
Dean gave us a step by step process to make a buyers list in October send me your email and I will attach a copy of the pdf file I have.
Donna

I've had my two books from Dean since Oct. and a common theme on this site from people is to ask simple questions. We all need to read and become educated on what we are doing. Everyone on this site is more than happy to answer questions but first use the search / and read up a bit.

MJ I think that its really cool that you were able to get an offer accepted but it sounds like you need to take a breath and dig in and make it happen. Like lbrown said. All the answers are on this site but its up to us to follow them and make it happen.

Good luck, you can do it

Lance

MJ
When u placed your offer what contingencies did u have in place? Did you state it was a cash deal and you could close in 10 days? If not just go back to the seller and tell them you can close in 30 or 45 days, then get to advertising the house like crazy to find an end buyer. The funding you have in place is only a one day deal on a double close you have to have an end buyer to pass that on to. Craiglist, Back Page, postlets, For Sale by Owner, pennysavers, hand written ads in grocery stores, laundrymats, walmart, truckstops, bandit signs, 5day auction open house, lots of possiblities. It all depends on how the offer was worded. Grab your copy and PM me with your phone number I go through it line by line with u tomorrow if u would like and see if I can help you. Just need to know what time zone your in I am in MST is 11 pm here.
It's all good.
Donna

Hi I am not sure why it is being blocked would you be yahooing or gmailing catch my drift.
Donna

Hi,
I also wanted to get a buyers list if you can email me at bariafl@****. I really appreciate your help.

Baria

I am not getting the extensions via PM's or on here look at comment #10 just say the intension only and add ing after it I will understand because I have the rest. OKAYDOKAY.
Mike on the PM is posts it '''' never heard of that one LOL
We'll get it sooner or later.
Donna

Hi cathy.

I'm so lucky to know you have a list Buyer, If you don't mind can you send me a Buyer list, Because I'm new babie on this Dean Network. Thank you
My email: van2ngoc@****

Kind Regards

van2ngoc

Hi Donna

I'm so lucky to know you have a list Buyer, If you don't mind can you send me a Buyer list, Because I'm new babie on this Dean Network. Thank you
My email: van2ngoc@

Kind Regards

van2ngoc

I have got done reading "PFRERN!" and have learned a boatload of info that i never knew i would know! But what my ? is
what do i do next? Do i look for a real estate agent before i do anything? Do i find buyers before the deals? i have never bought property before will the real estate agency even take me seriously? This is what i feel was left out of the book on what to do first. So anyone with info to help me start my empire i would greatly appreciate it! Thanks for ur time and reading this!

First of all lets slow down a bit we are giving MJ shell shock!

First of all you need to get your contract in place. Now that you have your offer accepted it is time to lock it up. Visit my blog for a contract that you can use to get this deal locked up. http://wholesaleagreement.blogspot.com/

Was your offer directly with the seller or with an Agent? Either way you must stay in control of the deal. You are "the buyer" you do things on your terms or there is no deal. You are not obligated to this property until you have a contract (Agreement of sale) in place with your signature... so relax!

Your terms are...

#1 You will need at least 30 days to close on this property. (put the closing date on the contract whatever the date will be 30 days from now.)

#2 you are putting no money down.

#3 If you are dealing with the seller directly the contract will have contingencies on it that says...

1) Offer is contingent upon suitable home inspection. 2) Purchase contingent upon ability to re-assign this purchase contract to another buyer without penalty.3) Purchase contingent upon partner’s approval.

If you are dealing with a Real Estate Agent than I suggest Matt's Instant Equity Exchange contracts which can be found in Dean's book "Profit From Real Estate Right Now".

Once you have the contracts in place you will need to find a buyer ASAP. But relax because if you don't find a buyer within 30 days you have "Exit Strategies" in the contracts that will let you out of the deal. The "Exit strategies" are your contingencies because they "Partner that you are referring to is your end buyer and if you cannot find one than he cannot approve so you are out of the contract.

Once your contracts are done begin advertising the property everywhere you can. Craigslist, flyers, put an add in your local news paper etc...

Now take a deep breath and exhale

You can do this!

"Dean gave us a step by step process to make a buyers list in October send me your email and I will attach a copy of the pdf file I have."
Donna

To those seeking to establish a buyers list, Donna is suggesting you use the tools provided by Dean for building a buyer's list. You will be responsible for finding the buyer for your list. Hope this is all clear now.

Sandra

Hi Carol Stinson

I'm read your article is very good to learn, also it make me feel more confidant. I hope you have very well healthy and good life.

Kind Regards

Van2ngoc

Hello Carol, i have read your posts and i think you can help me get over my hurdle in my first deal. I am currently looking too place a bid on 2 properties inherited by out-of-state people. The houses have been empty for years and the owners have been paying taxes on them. They want to get some inheritance money soon so this is a opportunity to make money and help them out. I plan on placing bids that are 1/3 of the value of the home due to it has been empty for some years. Both homes have had utilities on since been empty! One of the homes are fully furnished with antique furniture which will provide funding for carpet,paint, and repairs! Both need very little repair money.
My hurdle here is that the seller is being rep by a realtor and im not sure if the IEE strategy will work with the realtor in the middle. But i could be wrong because i read in one of your posts that if your dealing with a realtor then use Matt's IEE contracts (which i thought were deans IEE contracts) in the book. So before i place the bid what should my offer include to make the system work when buyer is dealing with a realtor so i can assign the contract to a buyer i have lined up? The book really only described dealing with the seller only. Any info you can provide me will be priceless and help me close my first deal since finishing the book a week or so ago! Thank you for your time and knowledge!

Andrew

MJ..........Another suggestion for you to consider. Get another investor to partner with you on this one just to get through it. Offer them a split or just assign the contract to them for a fee and watch and learn from them. This is the best way to learn in my opinion. All the books and tapes and courses in the world are useless unless the info is applied.

Don't panic. Be proud that you took action and made an offer. Just caught you a little off guard that it was accepted. I think it is fantastic. That's what it takes to be successful in this business - action. I have been doing this for nearly 18 years and I must say I am proud of you for trying. It takes guts to do what you did. Some take years to make their first offer. Don't be afraid to make mistakes. I make them every day.

A lot of "you should have done this and you should have done" that flying around here. Don't let that bother you, you already know what you should have done. We can work on that later. Let's figure out a way to make some money on this deal. What you really need is some good advice on how to make this deal work, not a bunch of criticism.

In addition to an investor/partner, you may want to contact your attorney, if you have one. If not, get one right away. Preferably one referred by another investor. Take the offer/contract to them and let them offer some guidance.

Also, don't let the sellers push you around. You take control. Chances are, your offer already expired anyway, as long as you put an expiration date on it. You did say the offer was made in November. That may definitely work in your favor also. You might be able to negotiate a better deal since the sellers have obviously had no other takers. Regardless, they need you more than you need them, especially in this market. Buyers are golden these days and we need to remember that.

One more thing. Since you made your offer back in November, double check the comps to make sure nothing crazy has happened to the values in that area.

Hope this helps.

Thanks! Carol for The step by step on closing with assignment of contract. I'm fairly new as well. This gave me a better idea of how things work. But I do have a question? when your signing a contract directly with seller do you have to have a third witness like notary public, I'm not clear on this. What about when your signing with an agent would it be the same or is it different, please make this clear for me. Who all needs to be at a signing of contract.Thanks Maria

when you sign a purchase agreement with a seller that contract is between you and the seller. There really is no need to go to a notary the only people who need to be at the signing of the contract between you and the seller are you and the seller.

When you sign a contract with a Realtor that is another story since the Realtor is the middle man between you and the seller. However your agreement is still between you and the seller (not the Realtor) the Realtor has another contract or listing agreement which they will get paid from.

Hope this helps