need help please

First if you are creative, Don't e-mail go and set down and talk to them. I call no one are e-mail. If thy are going to tell me no Its going to be to my face. Their is a hot-line that you can call and use the coaches if you choose to. And they will answer any question you have. Remember their is no DUMB question. Now use your creative and go get it done. wish you the best of luck.

randy

First of all, the so called investor who told you it wasn't worth it is probably one of those people who went into investing with a negative attitude to start with, expecting to retire in 6 months, approached the entire process without the knowledge you have already from reading info in Deans books and info on this site. As far as finding an Agent to work with, try going and talking to one in person. Like my agent told me, she spends most of her days dealing with anxious and frustrated clients wondering why they are not getting any offers on their home.

Keep reading the info on this site, read through the journals. You have already done the hardest part, getting started.

Longhorn

Good Day to all,

I want to do contract assignments, but I have a few questions before I get started. I spoke to a coach already, but I believe if someone that has done an assignment already can answer these questions I would be ready to go - I live in the state of MD. My questions are:

(1) When I decide on the house I want to sell to cash buyer; I understand I must fill out the contract for assignment which is the "Assignment of real estate Purchase and Sale Agreement form" and the "Purchase Agreement form".

Which of the two forms do I give to the cash buyer and what other forms if any do I give to cash buyer? Along with the contract that I give to the Attorney - is there any other contract that I give to the Attorney?

(2) When I spoke to a coach I ask him to explain the process of the buyer sending the check to attorney and attorney writing me a check. He says the buyer writes the Real Estate Attorney a check, the Attorney then writes the seller a check and also write me a check after fees etc. is taken out.

This is the chain reaction in processing the check I believe he was trying to explain to me, or maybe I mis-understood him - Is this correct?

Buyer- Real Estate Attorney -Seller -Me

Why is the Attorney writing the seller a check? or maybe I mis-understood

(3)I read a real assignment deal that was done. Susie found a four-unit quadplex for $249,000; the after repair value is $439,000. She locked the deal and added $10,000 to the price and called her investor (cash buyer) and offer the property to him/her for $259,000;she then says "I know I will get a check for $10,000". She says the property needs $30,000 in repairs; after closing cost the investor would have approximately $139,000 in instant equity.

How did she estimate $139,000 in equity?

If the Attorney would give her a check for $10,000 out of the $259,000 -
to who does the $249,000 go too? and what other fees is taken out of this amount to the Attorney?

Call the coaches and explain your problems with understanding the contracts and doing the math, they will work with you and answer any questions. They can assign classes that cover where you feel you are having problems.

Here is another thought. You DO NOT need to have a specific agent to work with!! I did not. At first, just use the agent that has the listing on the house you want to make an offer on!

Work on doing deals directly with a distressed home owner. That takes no agent at all! Work on your marketing, that takes a creative mind! Market your real estate business to sellers and buyers. The academy has classes on those subjects as well as Dean's books.

Once you have done a deal or two, it will become a privilege for the agent to work for you, they will be a dime a dozen!

Tip: I always use the listing agent on an REO and never bring in my own agent. Why? The listing agent gets all the commission so they have a little more motivation to submit my offer and follow up!

Study, ask all the questions you can think of, you will make it! It takes a creative mind to make it in this business, don't be discouraged!!

Good luck,
Michael Mangham
MD home Acquisitions LLC

then i would suggest attending all the rei clubs in your area and let them know you are a rehabber/investor then network with other investors and ask them can they refer you a realtor that is investor friendly and if you begin to do a few rehabs for other investors im sure once you build some rapport with them then you can ask them to overlook parts of a contract you have that you may need assistance on.

>>> Where the Money Goes

The Attorney handles escrow for the transaction of closing. He's like the man in the middle who makes sure everyone gets paid properly.

a)The buyer pays the Attorney -> it goes into a escrow (holding) account.

b)You give documents to the Attorney the shows you are a lien holder to the sales transaction. ( You're like a contractor owed money for services ).

c)The buyer pays closing costs to the Attorney (in addition to the $259k *your selling price)

d) The Attorney will distribute all monies recieved and put into the escrow account.

e) The buyer get the deed.
The seller gets;
$249k minus sellers' closing costs minus Attorney's fee ($1k for example)
and minus any previous mortgage balances on the property (we'll use $0
for this example). The seller would receive about $243k give or take.

f) The Attorney then issues a check to the lien holder (you) $10k

g) The escrow account is now $0 and everyone has received the monies due them.

>>> Equity calculation:

The seller agrees to sell to you for $249k
You sell to your buyer for $259k
Repairs are $30k
The estimated After Repair Value (APV) is $439k

The final buyer(owner) purchases it for $259k (from your assignment agreement) The buyer puts $30k into the property to make repairs.
The property now is said to be worth $439k

Math:
$259,000 purchase
$30,000 repairs
$11,000 approx. closing costs
--------------
$300,000 final cost
$439,000 ARV

$139,000 gross equity