Making offer - need fast answers!

Yes you include the repair cost but most HML will only lend on the ARV or after rehab value. Which is the value after the property has been rehabbed. So that may be 60-70% typicallly. So lets say your property is 60K and you have to work on it but the ARV would be 110K once completed. You could tpically get a loan for 66K up front and some lends will even let you put rehab into a second rust account and draw from it for further repairs which are needed.

Okay, so here's my numbers:

offered $80
repairs $20

total $100k
ARV $150+

Does that sound okay? I haven't gotten the HML packet put together yet, that's next on the list.

So, in my offer, should I offer $100k purchase price and have the seller give concessions for repairs for $20k?

Also, do you know what I should do in the spots on the contract that require initials, when I am doing an "and/or assigns"?

THANK YOU!!!!!

Tracey

You just answered you own question. Just put it on paper and go for it

Okay -sounds good!

But, (not to sound like a broken record, but I know I do, LOL!) when I'm doing "and/or assigns" on the signature lines, do I need to do anything special on the places that I only initial? Or just put my own initials, and nothing else?

THANK YOU ANITA!!

Tracey

You will sign your name PLUS and/or assignees in EVERY spot thatrequires your signature.

Otherwise you, yourself invalidate it and you loose. Broken record fixed...lol

I put a call into my broker to get an answer to your question. He said to put "your name and/or assignee" in the buyer section on the first page. it is not necessary to put it anywhere else on the contract.

Al

Okay, sorry, I am dense today. So, I know on the signature lines.

On the Oregon contracts, there are places at the bottom of every page for your initials - not a full signature, just initials. What do I put in those?

Thanks for being so patient with me!!

Tracey

Just put your initials in those blanks. Sign the contract with just your name. You only put "and/or assignee" on the front page under buyer.

Al

GOT IT! THANKS!!!

Tracey

Okay, new question. My agent is telling me that there will be a problem with me trying to market this property before the close, because it is listed with an agent. Any thoughts on this before she calls me back?

Thanks

Tracey

Is the property occupied? If it is not occupied, make the statement in the contract that you will be marketing the property during escrow. If it is occupied, you will need to work that out with the current owner.

Property is not occupied. I know that my agent is thinking that it's something to do with the broker's listing agreement. Is there anything there that can prevent me from marketing the property during escrow? Once i have a signed offer, I legally control the property, right?

Tracey

Okay, talked with my agent. We're going to use some wording to the effect of "buyer reserves the right to market the contract and show the property toprospective assignees". Should work.

Now to start working on the HML packet. For whatever reason, that part scares me to death!

Thanks everyone for all your help!!

Tracey

Glad to have you back, haven't seen you for a while. I learned a lot from your previous posts. Hope everything is well with you.

So the HML lender will let you walk away from the closing table with cash in hand to fix the property if the loan is less than 60-70% of ARV?

I found an agent willing to help me find properties to assisgn. He said all I need to do is get proof of funds from the hard money lender and we can proceed. He told me of some homes we can look into. My concern is does he get paid through my cut. If so I will make sure to it that he gets paid. Or does the end buyer pay him or actually the seller.For hard money lenders I think I will use Coastal Funding or a local guy. But how does the strategy of refinancing hard money loans work. Don't Istill have to qualify for the refinance if I needed it. If were rehabbing the property to hold and rent out? Do I need to get proof of funds letter stating the specifics of that particular house I want to place the offer on every time. Or is it letter stating that the lender will loan me up to a certain amount. Sorry for all the questions people. A little guidance so I understand what I am to do.
Thanks

That is exactly what my RE agent explained to me this past Tuesday... DITTO!!!

Is actually not necessary in the state of Oregon. Here....UNLESS otherwise stated ....ALL CONTRACTS ARE ASSIGNABLE... But it doesn't hurt...LOL

Another way to put that instead of And/or assigns.... is to have a "closing" clause where you have the statement...."exact vestment of title to be determined at closing" somewhere in the verbage....Vestment being a word that you can slip by on someone that is opposed to assignments.

Sam