OfflineSo I need help with this one DG Family. I just came across an opportunity from a friend and fellow investor, who knows someone that is selling their town home in Los Angeles, CA. The seller needs a buyer fast and has $30,000 in equity. This is a great opportunity for me to jump on and I would like to hopefully profit on this one!
What I basically need to know is how do I get this property under contract so I can get a buyer to purchase the property? Granted, I've never done an assignment deal before, let alone an actual one as well. Also, am I able to use the contract forms from here on DG.com?
I hope this isn't a complex process that would be too much for a newbie investor like me, and I hope I can take advantage of it while I still can. Any information, feedback and advice would truly be appreciated. Thanks so much DG Family and God Bless!
Andre
"You are who you are without a doubt...And what you put in is what you see out."
Andre,
As good as a deal may sound on the surface, always look before you leap. Make sure to do your homework. The 1st thing you will want to do is get a good realtor that is local to L.A., and who can pull you comps on this property. A good realtor will help you structure the contract so that you are protected and help you get the most out of this property.
Good job, and good luck!
Get your advice from good sources concerning L. A.
I know a successful investor there and he told me that "if I'm only losing a couple hundred a month on houses, it's a good deal!" that is a totally different market than most of the U. S. and should be treated as such. Run your numbers and see if it makes sense to your end buyer. There is still a lot of speculating done out there in L.A. and I can not understand their thinking process. Losing money every month is ok? If you can bring them 8% ROI, they may think that's great there.
Take action, get it under contract with a good escape clause. Learn on the fly! If the deal sucks, get out and learn from it. Use a local realtor to qualify it.
Real estate works...
Andre,
Find out why seller is selling fast? Have you seen the property? Does it need any rehab or updating work to it? Is it priced right? Do you have buyers that would want to buy this property? Doing a Assignment is fairly easy, but remember having a buyer for this is very important because you don't want to be stuck with this property.
1. Get town house under contract
2. Find buyer for it asap
Hope this helps.
Shah
First, of all, you need to know that"assignment contracts " are illegal in California. You need a flexible & fair California realtor who wants to help you and a California real estate attorney. Business methods are different in California.You should definitely find out why "the seller is so motivated to sell" because there could be major problems only a specialist can see; such as foundation situations occurring due to earthquake damage for instance... Well, Persevere On! Best Wishes to you in a harsh climate(business wise)on the West Coast.
anita Page
Forgot to mention a few things. The value price is at $315,000, but the seller wants to sell it quickly. Its a FSBO and so far a buyer placed an offer and it went from $285,000 to $290,000. And I unfortunately don't have any buyers on my list, so either I can try word of mouth or advertise it on Craigslist and see if that'll pull something up quickly. Thanks everyone for the input and advice. We'll see how this all goes for me!
Andre
"You are who you are without a doubt...And what you put in is what you see out."
Andre
What is the house worth? Do you know the FMV? What will it rent for? How much are taxes and insurance?
Real estate works...
If the property sells for $315,000 your or your buyers selling costs are around $25,000 = $290,000 How could this ever began to be looked at as a deal? You would have to buy it at $260,000 or so and have zero rehab/remodel costs.
Maybe I misunderstood the numbers.
I think I will go pound a round peg into a square hole for a little while.
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
$260k would be the MAX offer, IF there is no rehab needed. IF the value is really $315k. Is that quick sale value or full retail value?
Lots of things to consider.
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