What to do? What to do? Scared and excited at the same time. A newbie needs help.

I would first find out what the taxes owed are and if there is a mortgage on the home. If there is no mortgage and it is going to tax sale, you will only need to pay what is owed for taxes. All other lein holders, if my knowledge is correct, will go away since taxes take precident over all other leins. Be sure to go onto deans site www.totalviewrealestate.com to check value there as well.
It might be to your advantage to use the listing agent since they will get both slices of the pie if your offer goes through. If the owners are back on a mortgage, you may want to bring them current and take over the payment if it is low enough for you and lease to purchase the property creating a cash flow. This free's your cash up for other deals.
Very important you know what the repairs are. You may also be in a strong position to pay cash if the property cannot be conventionally financed or you can use it as a negotiating tool bring in a lower offer and close fast. Be sure to have a full title search done to be sure that the leins are not excessive. Hope this helps.

Whew! Sounds like a can of worms. First find out Fair Market Value through another agent. Subtract liens, repair costs from a reputable contractor. Use contingency clause such on approval of finance, or partner. Read Deans books about how to make a offer. I personally wouldn't touch this one. Keith Success be with you!

Thanks Mary-Ellen and Keith.

More info. No Mrtg. County tax is about $1,400. I will find out how much the other liens tonight. Btw, the offer on the table is cash offer also.

I've read Dean’s books few months ago...but definitely going to re-read some chapters tonight.

Thanks again.

I am not sure what your financial situation is but I would highly suggest that you join the academy if you are able. They can guide you through the best way to approach this deal and offer insight to your approach with an offer. It sounds to me that if they have no mortgage and it is going to tax sale that there must be a desperate situation here. I would suggest you ask the realtor what the sellers hot button is. Find out what they need or want and this may increase your chances to get your offer accepted if you choose to make one. Make sure you make it subject to inspections if you are not sure of the rehab. costs involved. No deal is a good deal if you don't have all the facts so you can determine what your profit will be. I would also call the tax dept. and see if you can purchase the tax lein prior to auction. You may want to ask them for a list of delinquent tax payers if they are a county that auctions and find out when their next one will be or if they do it on as needed basis.

I've read DG's book BARM...I was compelled to take action. Just a little background...I am a recent college grad who has always interested in Real Estate. But not having the time and money to dedicate to it I placed on the back-burner. After readind DG's new book I felt totally inspired to act now! So here I am! I would appreciate it if anybody could let me know the best way for me to complete my first deal. I honestly have subpar credit and and no money due to college loans. All advice will be much obliged.

Or rather, advice on the best way to get started...

We all have to accept our circumstances good or bad and start where we are. I would suggest if you have no credit or money that you do lease/option or assignment. Get Dean's newest book and look at Greggs contributions. He started with nothing working a full time job doing lease options. I am personally working on assignments to get cash. It all starts with passion and breaking through fears. We all have them. Thats the so what about life. Just keep yourself around motivated people, don't watch the news, stay connected to this site, join the academy and never never settle or give up.

This is my first time taking the first step looking in local news papers
for foreclosures I have poor credit no money in my account and I'am un-
employed if there's anyone that would'nt mind telling me what they did in
this situation please tell me what to do. This I'am ready too be a blessing
to other people other than myself so thanks befor hand for responce that
i will be recieving.

GOD BLESS YOU!

I would probably get your own Realtor. They would represent you and your best interests as oppsed to the sellers which the listing agent is going to do especially if hes related to the Realtor. The numbers don't seem like they make sense though. And please don't use zillow, eppraisal, cyberhomes or any of those other **** sites, they clearly are not accurate. the best way is to have your realtor pull comps. And make sure he is pulling within the past 60-90 days not within the year.

Chad

Raymond,

Alot of people are doing assignment contracts which require no credit, no job, and no money! I'm sorry a deposit in the amount negotiated between you and the seller. You can borrow this money from a person and either split the profits or give them double their money back or whatever you decide. You find a property assign it to an investor and charge him an assigment fee.

Win win for everyone

Chad

Alot of people have been assigning contracts to make a few extra bucks. they find a deal and assign it to an investor for an assigment fee. Look in ads for potential buyers and ask what hey are looking for. find it and make $$

Chad

I checked your profile but there's no info there. Which state are you located in? Some states are Tax Lien States and others are Tax Deed States. Is the property itself actually going to auction (Deed) or is the Lien being auctioned off? I don't believe most people are going to be in a rush to sell their homes if it is a Lien sale, since even after the lien is bought the seller has a set amount of time to pay the Lien-buyer back, with interest. Especially if the home is mortgage-free. But as someone else suggested, they may just be at a point where they want to walk away from the house for some reason.

Assuming it is a Tax Deed state, the County's lien on the property takes precedence. If there are other liens, there is nothing to stop those lien holders from bidding on the property so that they can recoup whatever the amount of their lien is after they fix & flip the house. However, you, as the winning bidder, are not obligated to pay any liens other than the tax lien.

They do seem to be asking alot for a house that the RE sites value at little more than the asking price. It could be a house in their neighborhood has recently sold for $90K and that is what they basing their price on. Check out some of the sites and look for comps in the neighborhood that have sold recently. I think Trulia gives you this info when you enter in the prop's address. Redfin and Zillow are also good for this purpose.

Find out if you can have a look at the house before making your offer. If yes, make a checklist of EVERYTHING (windows, roof, air conditioning, floors, interior/exterior paint, gutters, siding, plumbing fixtures, appliances, etc.) before you go and check everything off as you go through the house. Hopefully, the place doesn't have it's original plumbing and electrical. Then go home and figure out how much all the repairs are going to cost you. Start at what they want and start subtracting to come up with your offer. Use your homework as backup when submitting your offer.

The house is 100 years old and only has one bath. Flips sell best that are 3bd & 2bth. Be careful with this one. It has the potential to be a major money pit.

You may just want to go in with a low offer, say $40K. That will still give them $38,600. If they reject it you can always counter with a best and final.

Thanks Mary-Ellen for the great advice. Would Greggs contributions be in DG's new book? I think the lease/option idea would be a gteat starting point. I'd like you to know I'm not fearful of RE investing anymore...I just don't know the first step to take. Regarding lease/option should I began by looking for foreclosed homes?

There is a whole section where Gregg explains some of his deals. There is also information on this in profit from real estate now. Regarding bank owned properties and lease options. I have found, thus far anyway, that the banks will not allow and or assigns in the contract. I am looking at homes on the market for more than 90 days and motivation in the ad. I check Craig's list, realtor.com and rental ad's in the newspaper. I hear the penny saver is great for advertising as well but have not done this yet myself. Best of luck and success.

Thanks Chad, Cindy and everybody.

Thanks.

Sounds like a good plan. I have been working on the lease option approach of Greg Murphy. I use the preforeclosure list on 4closurealert.com to find perspective sellers. Look for ones with low default amounts and the amount owed is FMV or less. Keith Success be with you!