OfflineOK, so I'm a rookie at this.. I've been an insurance agent for almost 7 years, and a family member of mine has talked me into real estate investing. I have very little money to throw at this and know it would be tricky getting a loan being self-employed, so I've decided to start learning this by wholesaling.
I have a deal I'm working... I've negotiated a purchase price of $145k on a property with a ARV of about $290. It needs about $40k in repairs. Should be a fairly easy deal to move and I have a few investors that are clients that I will talk with about this property once it's under contract.
I understand the concept, but I'm a little nervous about the purchase agreement, title company, and assigning this contract.
What documents do I need and where do I find them?
What about escape clauses?
What's the smallest amount of earnest money I can get away with using?
Is a repair estimate from a contractor enough to show to an investor?
How does the title company come into play? Are there fees that I pay?
Does the end-buyer pay me a down payment? Or, do I get paid at closing?
Sorry for all of the questions... I am a detail freak. Any help would be appreciated.
Thanks!
I am sure that you will get some wonderful responses and lots of great advice from the members of this site. What I can tell you is that on the left side of this site there is a Student Resources section, under which there is a Forms and Docs section, click on it and I am sure that you will find what you need. At the top of the page there is also a Search/Enter tab try that too and always re-read the book.
What documents do I need and where do I find them?
What about escape clauses?
What's the smallest amount of earnest money I can get away with using?
Is a repair estimate from a contractor enough to show to an investor?
How does the title company come into play? Are there fees that I pay?
Does the end-buyer pay me a down payment? Or, do I get paid at closing?
Thanks!
If your numbers are on, should definitely work. 63% of ARV works.
All you really needs is a purchase agreement. Just fill in the blanks. Under buyer put .
For escape clauses, all you should really need is inspection. That is a catch all to get for any reason. Just make sure you have a long enough inspection period.
Technically 10.00 of earnest money I believe. But really anything of value works ie a promissory note.
You probably wont be dealing with title at all. Just sign over the contract to an investor, take your cash and move on to the next one. But you might want to ask your invstors for a decent title company. Title is typically decided by the seller anyway.
GL,
Mark
Great info...
Quick question:
What do I put under buyer? The agreements I have seen give a 60 day time-frame to close. Is this standard?
Do I require the buyer to pay anything to me or do I get paid by the title company?
Do I need to have an inspector or contractor look at the property?