Possible first deal!!!!

Can anyone steer me in the right direction on this? I am really unsure if i am doing things correctly. Here is a little more. I have found a real estate guy. He knows what i want to do. I have gone on craigs list and printed out all the potential investors info. I plan on calling them to see what they are interested in, area and house wise. do i need a real estate lawer or anything?
Like i said i plan to use cbrpowers advice on the double closing. So I think i have to find a title co that does the double closing and an investor to give me the proof of of funds. Or should i try to do a assignment deal? please advise wise ones.

Hey BC,

Well you are doing the right thing by reading all of the posts. That's where I learned quite a bit of stuff. In your situation, I would try and get ahold of who ever is selling it whether it be an agent or a son or daughter and just talk with them. I would set up a time to go meet with them, take a walk through and check out what needs to be updated. That way you have reason for your low ball offer. Also the 165 days is HUGE when asking a lower price. There is probably a reason why so make sure you find out. Other than that, you definitely need to start working with a title company before anything else. They are important. You could try and assignment fee if you like. The reason I like to use assignment fee's is they are easier but if you think you are going to make more that say, 20+ K on the deal I like to use a double close. Just so they can't see how much I'm making. It sounds like you know what you are doing so get a title company lined up, talk with them and make sure that they are cool with investors and double closing, then get ahold of the seller and take a walk through, and make sure you point out all of the negatives so they see what it will take to make it sell. Then you submit an offer. Good luck I hope it works out for you.

Kai

Thank you for the help. I really appreciate all the help i can get.
My real estate agent actually works for the company that has the house listed. I can ask him to show me the house. I did an acris search on the property but am not sure if the name on it is the current owner. But i should have just asked my agent lol.
I will keep you posted on everything.
Thanks again. Richie.

Ok I have a buyer who is actually a co-worker. He is interested in buying a home. I asked him what area and then found a forclosure there. I will have to use a double closing because i should walk away with 30-40k. He is going to see if he can get approved for a loan by the bank next week. I will call sistreats connection for the finacing and title co once i know he is approved and for how much. My problem is How do i go about showing him the home without him asking the realestate guy how much it is ?

After posting my question and then reading this post, I realize I have the same issue as you. I also want to find out how to do this without the seller(or seller's agent) and the investor finding out the amount of profit I will make? I thought about just showing the investor pictures of the property but this might not be enough if they are really serious about the investment.

I was thinking. Maybe when I go to look at the house first . I can ask the agent to give me the key to show my partner the property so he (the agent)doesnt have to come back with me.

Show your new buyer the home with your agent there with you. If your new buyer finds out the asking price it won't matter. You are selling the house for $180,000 and the asking price is $234,000. The new buyer is getting a great price.

This is actually a different deal that fell on my lap via a conversation i had with the co-worker lol. So i decided to go with this one first since I have the end buyer. I didnt look at the home personally yet but will do it asap.The good part is he just wants to be in a certain area (not house). The one i have researched in his area of choice is a 2 family which he would prefer. It sold for 350,000 in 2006.I looked it up on propertyshark and it says the home is only worth 106,000 today . the asking reo price is 69,000. So i expect something to be wrong. I figure i can sell it to him for 100,000 he should be able to live rent free and we both are happy in the end. if i can get it for 35 - 40k. Does that sound about right or should i go lower.I may have to put some of my earnings towards his downpayment if need be to get it done. He has exellent credit but only money in his 401k. so i figure if i have to put some of my profits up to get my first deal done who cares. I should still walk away anywhere from 15-20k and some knowledge and confidence to move foward.Thank you for steering thru this . I am sure i will need more advice as this unfolds lol. thanks all.Richie.

I don't have my agent involved in this. should I since it is a bank owned ?property.

Congratulations on taking action! That's the biggest step in this whole game. Sounds like you're doing all the necessary research and it's great that you're getting your buyers lined up. If you feel comfortable without your agent involved you could definitely go ahead without one, especially since your buyer is someone you know and is probably willing to work through the steps with you. But if this is your first deal, it might be to your benefit to have someone with experience walk you through it, especially dealing with the bank. And the seller wouldn't be out much with the agent's comission since the purchase price is so low (and they're probably wanting to dump it by now anyway). I guess I would go with the agent.

And definitely look at the place ASAP before offering, do a walk-thru inspection. Go look at it RIGHT AWAY because if it's a great deal you don't want to give extra time for someone else to come across it.

Hey, again, congrats. I'm impressed.

Rina

Call Sissy's guy right away, too, so you have all that settled before-hand and have an understanding of how they go about things and how a double-closing will work. They will also give you a proof-of-funds letter. You might need that to present to the bank, as well.

Good luck! Keep us posted.

I will include my agent as you said. I think it is the right thing to do. This way he can see that i really am pushing foward. I wasn't going to call Sissy's guy until i get my buyer's ok on the property. I didn't want to put them thru any unnecessary motions as well as having them look at me like im not reputable if the deal fell thru some how.

It wouldn't hurt to call Sissy's guy anyway. I know what you mean about not wanting to "put them out", (and of course it's what you feel most comfortable with), but it wouldn't hurt to get their information and have a connection and an understanding of it ahead of time. By reading your posts here, everyone can tell you're serious (and plan on more than one deal in your future?). So looking into all areas you might consider wouldn't be trivial at all, either for you OR for them. Just a thought.

Rina

P.S. if i seem pushy, just let me know.

Ok, I was in touch with the agent that is selling the property. He said the house needs a kitchen and plumbing.I have a feeling it was ransacked for the copper and stuff. It is not in a great neighborhood . But i am going to see it anyway. It won't be until next week. He is going away for a few days and will have to arange it for me to get in. It is actually in another state too.around 1hr away not bad

I am waiting for the selling agent to set up a day for me to see the property. I am trying to think outside the box in order to find a way around the plumbing/kitchen problem. Here are my thoughts. Is it possible to sell the house as is to the end buyer with a stipulation that after the deal is done i will have the kitchen and plumbing renovations done within 30 days of sale.And will the bank still give the end buyer the loan with the renovations not done? Or should i show the end buyer the house to see if he is interested in that house, then if he is ask the bank to do the renovations before i buy it.

Hello everyone,

I am also just getting started. I have an opportunity for a short sale. Here is my scenario. First off I have no money but believe I could get cash and I also have bad credit. Now the owner has already talked with the bank about a possible short sale. The owner wants to stay in the house and says he would buy it back in two years. The comps in the area are going for 270-315,000. He has two mortgages and is behind on his payments do to health reasons. The property is currently listed for 259,900. He really just wants to get the burden off his chest. I want to know what you feel the best approach would be. My thoughts are I could probably get the home in a short sale at 175,000 then I would want to refinance it and pull some money out. He stays and pays the mortgage taxes and ins. for two years and buys at a price that I feel is fair for both of us. I think I am thinking in the right direction here. Then my next question would be how can I go about getting refinaced if my credit is poor. I would possibly be able to pay cash through an investor and pay him a small fee for letting me borrow his money to close and quickly refinance it.