OfflineHey Everybody...I want to start off first by thanking everyone whose posts Ive been reading & leaning so much from, There is a wealth of great information floating around here, So Thank You!!!
So to give everyone a brief synopsis of how I'm getting started. I am using no money & no credit & truth be told scared out of my mind... But highly motivated & not gunna let a little fear stand in the way of my goals.
Anyways I have decided to use a Realtor (Also An Investor) & seek out distressed properties that have been on the market for extended periods of time 300+ Days. For the last couple weeks Ive been sifting through the list to come up with 15 of the most qualified properties & heavily research them. My Realtor and I have gone through them line by line and done calculations to come up with the lowest possible offer that still has a very good chance of being accepted... This last Thursday he and I met up to put in offers on some of these. Now Because Im new to this process I had tons of questions, and ran into a few obstacles. I wanted to run them by everyone here & get some advice.
First: Going in I thought we were going to be submitting written offers in the form of letters of intent or some other similar method... I was told that in AZ they really don't hold any weight & typically get ignored. So we completed a few standardized AZ Purchase Agreement Contracts, each with an earnest $ check for $100 which I was actually quite uncomfortable with... I did however make sure to ask tons of questions to ensure I would be able to get back my earnest $ if the deal didn't go through.
Second: I was told that I Couldn't have "And or Assignees" on the contract for some reason... I would have to specifically list the end buyer by name... Otherwise I would have to just purchase the deal myself by qualifying for funding then re-sell it to my end buyer... I guess my question on this is, would I just be able to arrange a back to back closing with a hard money lender bridging the gap in between??? Is this common?
...Im also researching to find a company who will allow me to do this here in AZ because Ive heard most wont. Is this a good route to go or should I look into some other method?
Third: This is kind of relating to my second question ^ Ive read a little bit about getting a Proof of Funds letter, but should I go that route in this situation... Because as I understand it having that proof of funds would eliminate the need to go and get qualified for a mortgage on the property... Am I understanding this correctly?
Fourth: Some of the properties I wanted to make an offer on needed prior approval, and some prior approval with their specific bank or Proof Of Funds for cash buyers just to make an offer. Believe it or not one REO property has been listed for 3.5 years and they wanted prior approval through ONLY their specifically listed bank... That doesn't make sense to me, wouldn't you think they would be doing everything they could to get that liability off their books?
Anyways I welcome all comments and advice... And forgive me if some of this doesn't make perfect sense... Im still very new and learning
All the best
-Stephen
About 30 Min ago I just got another call from my Realtor asking me to either go through my mortgage broker or his for an "LSR"... As I said earlier I didnt wan to use any of my $ or CREDIT, Partially because Im still in the process of rebuilding my credit & not able /don't want to get a co-signer at this point.
Referencing back to my third question, Should I look more into getting a Proof Of Funds letter from some other source... I see some of the fees can be kind of steep.
Let me know what you all think.
Thx again
-Stephen
Im just getting out there and starting deals myself, so I cant help with most of your questions except number 4!!!
I had this same problem, but often times you dont need to get a pre qual from that banks... the Seller agent is the only one who sees the letter not the bank. So in most cases the seller agent just wants to see that you have talked to a lender before sumbitting an offer to the bank. Talk to your realtor, he/she may have come across this before.
I'm a Newbie in the investing in real estate with no money down, no credit etc..but it sounds to me like you need to talk to your Realtor again, because she isn't asking you to work your deals the way you want them done. You need to know why she isn't doing so. You may have to educate HER She has , apparently, worked with you to sort thru your expired or long term listings which is great so keep the relationship if you can get her to cooperate on your preferred method of putting in offers. ( a thought, a $100 deposit..as I understand it, may not be necessary...only $1.00 should make the contract legal..but check your state law.) There have been posts here re deposits..maybe someone else can give you better advise on this matter. But you absolutely have to get your realtor on the same page with you so you can be a dynamite money-making Team. Semper Fi D-LO
HI TO ALL OF YOU THIS IS THE MOST AWESOME THING IEVE SEEN YET IN TRYING TO GET MY REALESTATE INVESTING OFF THE GROUND IAM SCARED SOME WHAT BUT THINGS ARE BEING TO HAPPEN WITH ALL THE HELP FROM ALL OF YOU THAT SHARE WHAT AN AWESOME BREATH OF FRESH AIR AN IAM HAVING THE TIME OF MY LIFE . DEANS PROGRAM IS SOMEHTING COMPLETELY NEW AN IEVE STUDIED WITH SOME OF WHAT I THOUGHT WERE THE BEST IN THERE OWN WAY AN THEY ARE BUT DEAN REALLY PUTS HIS MOUTH WHERE HIS HEART IS AN I LOVE IT BEYOND WORDS . LETS KEEP WORKING TO GETHER MORE CAN BE ACCOMPLISHED BY A TEAM THAN BY ONE AN I THANK ALL OF YOU WITH ALL MY HEART FOR SUCH AN AWESOME TIME WITH ALL YOUR SHARING AN ONCE AGAIN IT IS AWESOME , THANKS SINCERELY , JIM AN IEVE GOT A DEAL IN THE MAKES THANKS TO ALL OF YOU !!!!!!
jbischoff
Welcome to the DG Family Network! lol If you haven't noticed by now, you will receive a response from many of us if not right away, soon very soon. We are here to support each other from day 1.
Much success, peace and blessings
Sheila
“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light not our darkness that frightens us. Actually, who are you not to be? You are a child of God. Your playing small doesn’t serve the world. There’s nothing enlightened about shrinking so that other people won’t feel insecure around you. We were born to make manifest the glory of God that is within us.”
- Nelson Mandela
Hi Steven,
I am anxiously waiting for answers to your same questions! I will keep checking back to see what people answer. I know California is a little different, but Realtors are saying I can't do this and that either. I hope they are just mis-informed.
I'll check back later,
AND GOOD LUCK! You will do great, so don't get frustrated!
Jill
"When we are grateful, fear disappears and abundance appears." ~ Anthony Robbins
"Do not wait; the time will never be "just right." Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along." ~ Napoleon Hill
Jill
Was the contract you wanted to put "and or assignees" an offer for a Bank-Owned property, or a short sale? I have been told that in Cali no bank will even look at an offer for their REO's that has that clause... still not sure if that is totally true here or not.
Jill
"When we are grateful, fear disappears and abundance appears." ~ Anthony Robbins
"Do not wait; the time will never be "just right." Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along." ~ Napoleon Hill
Jill