OfflineI have found a house that I think is a good deal, but don't know exactly what the right approach is for it. I found a house that the owner has 2.3 million into it, it appraised around 1.8 million and is listed at 800,000. The agent I talked to said there are no banks involved, so I take it the house is paid for. She said the owner is desperate for an offer and said he would probably accept 600,000 for it. The problem is I don't have any investors interested in something this big. Do I try to get it under contract and then get busy and try to find an investor to assign it to or is there some other approach I should be looking at. Any advice would be greatly appreciated.
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You could still go ahead and get it under contract and try to find an investor after, but try to get it under contract for at least 90 days or more. That way you'll have more time on your side to hand it off to an investor...or when you get it under contract, you can also auction the property "As Is". That way, hopefully you can get a quicker offer. Say you pay 600,000 for it and auction it for 900,000...you may not get the full amount but if you get even the original asking price which is 800,000 - you'll still make a HUGE profit. Chapter 11 in "Profit From Real Estate Right Now" explains the Auction method thoroughly. Hope that help and Good Luck.
D'Angelo
"A Winner Never Quit And A Quitter Never Win!"
I think it might be a little difficult to get the contract for 90 days but I will see what I can come up with. Thanks for the info.
I agree Lock up on Contract even if its only 30 Days. At that point you have control and no one can come claim stake on your property! Then run ads, post on Craigslist, kijji and who knows maybe someone bites. The trick is you wont profit if its not in contract by you. You may be able to get two or three investors to come in on the deal with you and split it. Now i know thats not the goal to give slices away of the pie but id rather get a bite then nothing at all and thats one big piece of pie lol. So my advice is see if you can lock it up and go from there remember you have ways out and even nothing else you gain experience in talking, and contracting, and promoting your business so when it comes to another flip you will have more confidence in yourself to go for it!
Not really much advice but i feel experience is always nice even if i dont buy the property.
Shawn
Promeric Properties
if you cannot get it under contract, find investors who will give you a finders fee for it.
Mention this to whomever you speak with but dont give them addresses; just give descriptions. Mention what they're asking what it appraises at, and what its selling at. that alone should make them interested enough to sign an agreement with you. If this deal falls through, at least they know you can find good properties
Hello,
Get a hold of Parkergavin0608. He has a long list of investors he`s willing to let you use.
Are there any specific contigencies I should put in when I lock this up. I know I have to put some in so I can get out if I can't find a buyer, and I know everyone uses different ones, but I thought I would just get some ideas if anyone has any. I was thinking I could use something like " upon partners approval" not sure if this will work, but if I say my partner is the person who supplies the money for my deals and then can't find an investor to supply the money than I guess my partner does not approve. Let me know if you think this will work or if I should use something else. Thanks.
Once I have it under contract with and/or assigns does this give me permission to advertise the property however and as much as I want? Can I put adds in the paper and put fliers out or do I have to be carefull about what I do.
Google "We buy Houses" or I buy Houses". You will find investors online willing to buy your properties after you lock up a deal. Try to lock up deals for at least 60 days so you can find an investor.
Say I lock up a property for 50k and assign it for 55k. Does the 5k assignment fee come directly out of my buyers pocket or does my buyer get a 55k mortgage and then the money is paid out of that at closing. I have a buyer that is looking for a house but she wants something that is zero down. I told her how the whole assignment thing works and she said ok. I am just trying to figure out if she needs to come up with 5k to pay me or if its figured into the loan.
Isaiah,
As far as advertisements, you need to put a contingency in the contract allowing you to advertise the property before you close on it. As far as assignment fees factored into a loan, I'm leaning towards "no", but I would recommend you call the advisory line and see what they say.
Vincent
"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53
Thanks everyone this helped me as well probably go the deal hunting route and try to earn enough extra cash to shop for my first property.
http://www.jasonbaudendistel.com/blog.html
Hey guys Im very fresh at this! What forms exactly are needed to go over there and lock that property up? Which ones???
Demetrius,
You need a Purchase and Sale Agreement. You'll see it here on DG.com under the forms and docs section.
Vincent
"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53