purchase to assign contract question

I am a newbie. I have purchased 3 homes to hold and rent in the Fort Myers (2) and LeHigh Acres (1) areas. I am looking to connect and see if I can partner or team with others in this area. Any takers?

Miss Tish

i do not know how to confirm the appraised value

i think it can become a legal 2 family by going to the zoning board but if i am assigning, i figure the end buyer would do all that if they want the deal?

also do i tell the sellers that i am only buying the property with the intent to assign it?

Kitty,

you have to average several recent sold properties (not for sale) comparable to your property (proximity, square footage, number of units, etc.) A realtor can give you this information.

You should go for it if (IF) you already have a buyer who is willing to purchase the property as is; otherwise you will end up wasting your time and maybe money...

Always be upfront with the seller-let them know your intentions before you both sign any documents.

Wishing you great success,

Valerie

thanks for everyone's help! can i use the purchase and sale agreement on this site for what i am trying to do?

With the forms on this site, I called a real estate atty, or if you know an Realtor/agent, ask them. My atty told me which one they preferred for Wisconsin, though both were acceptable. And they told me for free.
But make sure you have an exit clause....I recently wrote up an agreement and put the and/or assigns, and have so many days for financing or assigning. And you can also put on the "based on inspection or even with approval of partner." that gives you a way out. Just be sure you have a way out if you can't do anything with it.
Buyers are vital. But I sold 2 houses already without a buyer,up front, but knew the deal was good. One sold the same day I advertised it.
But don't waste time getting it out there once it is under contract. Call all the "We buy homes" and ask them too.
The first step is scarey, but just protect yourself, and go for it. You have nothing to lose and everything to gain!
Sandi

i think this is great information for all us newbies! anyone have any advice on how to get the seller to accept my offer and sign the contract to purchase? also, in this deal, i do not owe any taxes or need to get insurance , right? i am just simply using a piece of paper to lock up the property and then another piece of paper to assign to end buyer and then they do all the taxes, insurance and such, right??

first be up front and tell the seller your plan and how the assignment will work. If he wants to let his atty see it first, that is fine. But let him know you are not an agent, but an investor, and he does not pay you for selling the house. Let him aware that the end buyer works that part out with you. Otherwise you can get in legal trouble representing yourself, like an agent.
But that assignment is only for so long, there has to be a date to do something with it. During that time you are okay with insurance, as it is still in his name. When you assign it to your end buyer, that will be the new buyers responsibility.
I am also a newbie, and did my first contract with a home with a REMAX agent, who learned so much, that he is now working with me. He never understood assignments. And wants to work with more investors.
Over a year ago I did 2 deals completely on my own. just talked with the sellers and they let me advertise their homes and I didn't even understand the contracts. But had a note between us that I had time to do something with it.
Now that I signed up with Dean I learned so much and the coaches are so helpful.
Do you have any of his systems. And where are you located?
Good luck
Sandi

you appear to be headed to jumping in head first with no direction

bringing a deal to an investor when you have no idea what you're talking about or cannot answer questions will

1. Get you no callbacks

2. Get the deal snatched from under you

Get to understand the property and the logistics of it so that you can answer the most basic questions, like the comps. If you can't answer that, see likely actions above.

Good luck to you

You might want to start with an option to purchase agreement and maybe for 30 days this way if you don't have or can't find an end buyer there is no harm.

Jay C

i know how to get comps, i just was unsure when the person above said "confirmed" the comps- i thought maybe there was another way to confirm value of property other then comps in the area.

i have been studying all of Deans books and this site for over a year. I just really want to do a deal so i can get the confidence to do this. I am more of a hands on person, but i do not have any money for the Dean coaching program. what confuses me are the different forms and different ways to structure the deal. Like if i did an assignment, do i need to worry about the lead paint and such? also, do i need to pay a lawyer to look over my assignment contract? what happens if i can't find a buyer in the "60 days" from assignment? do i just rip up the contract and tell the seller sorry for wasting your time? i do not want to hurt anyone in this process, especially the seller or other investors. I am a person with integrity and I have too much of a conscience to do anybody wrong. I would literally not be able to sleep at night!!! i guess i am "jumping in" because i feel it has been long enough to sit by while others make money after studying for less time than i did. i am trying to not let fear get in my way...

i have no money so i am trying to get money through assignments so i can get better at this REI game.

What Are you doing as far as advertising you business?

all i have done for advertising is put up some ads on craigs list "attention rehabbers or cash buyers" or "looking to be your bird dog"

i have a small list of buyers that i have yet to speak with outside of email because i feel i do not know enough to speak confidently with them and then they will just never call me back. i figure if i can get one asignment deal under my belt- i will be golden...

i would love to have a mentor who wants nothing more than to teach me how to do one deal or two, by being right by side evry step of the way though it. UGH....

You guys are great for helping me out with all of this. I am realizing that I might not be exactly ready to pull the trigger out of fear of someone getting a bad deal. i think I have found a great deal though so maybe I will bird dog the deal to someone for a fee?

Where are you located?

central new jersey

Don't get discouraged, this is what the posts are for, to ask and get help.
As for the buyers, call them and let them know what you are doing, because the ones I work with actually talk to me and answer my questions. That makes me better at looking for them. The worst that they can do is ask more questions, and you may have to find out. Just don't give out too much info until you have something in writing for bird dogging. I trusted one investor with the info and he went behind me took the deal and walked away with $14k, in less than one week, and then sent me a $10 gift card for gas.
So always protect yourself.
Sandi

Kitty,

Go to the search and enter box and type in how to make an offer, or assignment offer and maybe this will help. It is hard to tell someone a step by step formula because everyone is different in the way the approach things.
Keep your chin up and it will come to you, continue to educate yourself as we all need to continue to educate ourselves.

Jay C

Hi everyone,
I have not been able to continue the dean's membership stuff, but have learned a ton from his two books.

I have found a duplex 1955 never updated rustic apt on the lake. The owner is facing foreclosure and is motivated and has said yes to a lease-option to buy contract with me for 8 years. He has arrears of about 6k that he didn't even realize. I told him i would try to find money to help him not to lose it to foreclosure if we could settle on a price together and lock it in. I have found it very difficult to find comps that are even close to this one, because it is unique both apts have 2 bd/1 bath; but it is no basement on blocks. The comps that are anything close from a realtor are between 154k and 190k.

the owner owns 77k plus around 6k in past due so 82,350 to keep it from going to the steps Dec 7th, 2010.

I verbally offered 112k because that is around what he originally paid for it 10 years ago. He said it was too low.

If we can settle on a lock in price more around 120's it would still be a cashflowing property; either my wife and I would move in or get two renters. it would easily rent with some tlc.

contracts i believe i need to have signed.

1. Agreement to lease with option to Purchase
2. Authorization for Release of Mortgage Info
3. memorandum of option - this is for the provider of the 6k money so it can't be sold around us

I plan to go to a real estate attorney and have him notarize and make arrangements; title search.

So anyone tell me how am i doing ? ok?

the payments mo. including taxes and insurance are 900.00 mo. easily two renters could pay 800.00 mo.

any input from you would help this newbie out?
i figure in a down market settling on a discounted from fmv price is a good opportunity.

*otherwise I might just sign it and or assigns and flip it for a very low price from this motivated owner.'

so do you have to put money out before you close? i am confused on this myself. i guess for the title search and attorney , right?

Kitty,

For someone that has had Deans book and studied for over a year, it baffles me that you have little to no idea on how to proceed. This is in no way a dis to you

I honestly think that for the time being you should read the book(s) again, go and look at some of the previous posts on subjects you have questions for, and then once you have a basic grasp of this, then plan a strategy on how to proceed.

I just think that you asking these questions shows you dont have a grasp of the concepts and procedures and jumping into making offers and such will prove to be a not so positive outcome. I don't want you to get burned and lose interet in this earlier than you should

Hi Miss Tish, I live in North Port, Fl.( about 20 Miles south of Sarasota ) and i'm interested in teaming up with you if your interested ? I have all of Deans books and CD's and i also am a member of the Real Estate Success Academy. I'm a newbie also and want to get my First Deal under my belt . I feel that i have so much knowledge available with the DG Family , Books,CD's and the Academy that i'm just soooo excited to get going. Could we talk and could you show me how you purchased your 3 homes ? You could be the one to kick start me here in Florida. I have been here in Florida a little over a year now and love it here. Also, if there is anyone in the DG family that would like to work with me down here in South West Florida , PLEASE ....let me know !

it baffles me too! i am trying so hard to understand but i always learn better doing hands on than any reading I do. but yes, i do not want to get burned and then lose interest too soon. thanks for the advice. i did not take it as a dis at all!

Hi,
First, don't think of yourself as a newbie, your a real estate investor!!! I live in the Northeast US, in NJ. When I was starting out, I used to invest in residential deals, 1-4 family, in NY, NJ and Philadelphia.

The one thing that concerns me is the non-legal 2 family. From a stand point of renting the second unit out, you may eventually run into zoning problems.

This would occur in the instance of doing a rehab. In my part of the country, you need to obtain permits for any work you do and if it is for the benefit of renting the property, the property must be zoned as a two unit.

The other instance is if something ever was to happen in the second unit of a personal injury nature, meaning you were to be sued.

I would begin by calling the building department for the city or county you live in and find out what you need to do to make it a legal 2 family.

I would proceed with the deal. You need a purchase agreement or what I use is a LOI, which is a Letter of Intent. In this, you could put in a clause that says, seller must file and pay for the cost of making the property a legal 2 family.

Good luck to you.

mlaurita,

thanks for the advice- i live in NJ also. have you been doing assignment deals here? if so, PM me and I would love to pick your brain! i will even bird dog for free if you will walk me through the whole process of the deal i find for you!

i personally do not want to hold this property, i just want to assign it for quick cash and do a few of those deals first to have some capital and then move on to bigger and better things

A non-legal 2 family thats set up as a 2 family is a 1 family. if you try and finance or get a buyer, they will comp it as a 1 fam which will be considerably less than a true legal 2 family because of the extra income factor

The seller is not going to waste their time changing the zoning if they're trying to sell it as they would have already done so beforehand. That will be on you when you buy it.

Move on. There are other houses to find, but first you've got to actually know what you're doing.

can i do a deal with no money down with a bank?they want $55,000 for a 3bd 2b 2cg.nice home value $79,000.if i cant do no money down?what should i offer them if i do cash.thank

get comps in the area, ask local realtors

I can understand your not wanting to holds the property and wanting to assign it. There is a guy named Glenn Galucci who does joint ventures in NJ and NY. I will look up his contact info and send another reply.

This is a guy you may want to look to for doing deals. I will also look up his website and post that as well.