OfflineHello ALL!!
Obviously one could tell Im a rookie by the subject headline. I've been reading the Profit From Real Estate book nonstop since it came in the mail 2 weeks ago. Best thing I ever did! Im almost about wrapped up with it and already I have 2 potential deals on the table I need questions answered on before I move forward and start making my offers. Anyone who chimes in with input would be GREATLY appreciated!!
1st Deal question
I have a friend who is moving and wants to be out of the home by July. She is working with an agent/realtor to assist her in selling the property already. I told her about what I've been doing & how I could help with selling the property Jimmy Johns FAST. lol
MY QUESTION(s) IS.....Could I still do the assignment deals to assist in selling the property even though she is already working with a realtor?? Would I be stepping on the realtors toes in any way? Couldnt the realtor still get paid her commission off of whatever the home sales for at closing AND I still get my fee for assigning the equity in the contract to the buyer at closing? I am all about good business and a win win situation for everyone in involved. Id like to get my cut, the realtor get he/she's cut & my friend gets her property sold before she moves in July.....please advise!
2nd Deal question
My mother is in pre-foreclosure status on her townhome! She owes about 139k to the bank but the home is valued at 100-110 range. Is this a perfect short sale option?? Are these types of deals worth pursuing. Home is in good shape and I think would be a great deal for an investor to rent out for positive cash flow if sold at the right price.
Thanks for all your help in advance and I will be around the site often!
Yes, you can still do an assignment. You would put an offer in on the property and sign it as Stormin and/or assignee. Your friend would have to accept an offer low enough that you could do an assignment. Also, your friend is still going to have to pay her realtor.
Short sales are great if you can get them cheap enough. I would find the lowest recent sales for townhomes in your mom's area. They're going to need to be below FMV. You're going to want to list everything wrong with the property to show the bank that it needs repairs. Use retail repair prices. The bank doesn't need to know that John Doe will do the repairs for a $2k, but the contractor wants $5k.
This is what your offer may look like...
ARV 110k
most recent lowest sales $80k
retail repairs $5k
minus your fee $2500 or more depending on how much you can negotiate
offer $55-75k max. It is really going to depend on cash flow and how much equity your end buyer wants. Some investors are okay with 20% equity, but a good cash flow of $200+ per month.
First, thanks for the quick response Kimmy J. You pretty much confirmed what I already knew regarding the 1st deal. Sometimes as a newbie you just need that "yep you got it" just to reassure that you're on the right track.
As far as the short sale deal, I think I forgot to mention in my original question that I would NOT be purchasing the town home myself due to my poor credit. I would be moreso pitching this below market value home to investors as an monthly cash flow rental property
EVERY BODY!! NEEDED HELP/ BUT NO GOT TIME; TO HELP!!!(PROVERBS 3:6)in all my ways i acknowledge him;and he shall direct my paths.(Psalms 138:8)The Lord will perfect that which concerneth me.
I was told to do FAQ's.
Randy
2for1!
Not sure exactly what this means or what to look for. If someone purchased a home for 100,000 made some payments now owe..95,000 , but the house is now valued at 75,000 do you try to buy it at 10 to 50% off the 75,000? So If I tryed to purchase this at 50% off or 37,500, what happens to the 57,500 that is still owed to the bank?
Not sure about the equity either, ex:
somone bought a house at 100,000.. now owes 50,000... has 50,000 in equity, the house value now due to the market is now valued at 75,000 does that mean they only have 25,000 in equity now or 50,000 since the house was purchase at 100,000.?
thanks for any help.
1anna2004