I have the deal, money will follow?

Looking for a partner and a private lender. No comments to my post of late yesterday. Any suggestions?

Do not give up but every deal will not work for everyone. I hope you can find a deal soon that will work out the way you want it to.

Steve.

Thank you for your encouragement and hope for a deal that will work.

Try giving more info about the deal (not the address) and maybe you will tweak more interest.

Numbers, type of prop, etc.

Good luck!

and put its a cash offer, contingent on inspection and partner approval, then write up a full prospectus on the property; comps, repairs needed and get estimates from a contractor or use the SFL hammerpoint if you have it, ARV, and about the property and area. (Once you have it locked up you can put the address in it the lenders to see)

Then tell about your company, your goals, your experience, yourself, and send it to all the HML you can find at your local REI, from other investors, people from auctions, or some online (but that is not the best place to find lenders, they are usually much more expensive and end up costing you more). Send it to people you know with money to lend and you can even post it here. This is how I purchased my rehab property, and the funds DID follow. I have lots of advice of what NOT to do with a HML as I got burned because of the urgency of getting the loan. BE CAREFUL who you deal with; don't trust all the posts by funders on this site as they are not all legit, and get EVERYTHING in writing and a GFE even if they tell you that's not necessary with a HML.

I think your L/O will work out better for you if you find FSBO properties instead of listed properties through an RE Agent.

Tammy's got the right approach here. Better than right. It works time and again. Typically, an all cash offer is NOT a full price offer because they close faster. Karen's right, too. post more info. good luck, and, peace,

Karen,
I do have more info now to post on this property that interests me. My L/O buyer is unique in the fact that not everyone needs a 7 bedroom SFR. As for the numbers: 11% CAP, Cash on Cash Return Estimate 17%, and the irr is 27%. Thanks for the comment.

Tammy, the realtor will not put in an offer without a conventional loan in place. It is an REO. I am sure your advise to be careful is great and if I can get that type of deal, I'd love to have more of yout thoughts. Thanks.

Mike, I am sure you are right, but how many times have you come across a 7 BR SFR that is affordable for an average income? Hey, I'll keep looking! Thanks.

Dana Leigh, I agree with you. I'm sure you, Tammy, and Karen have the right ideas.Thanks.

The advise given is abosolutely right. In order for you to market any property you must provide info, pics and as much detail as possible. Cash investors are swamped right now and they are essentially buyers who are able to pick and choose. With the limited, general info you have provided your chance of finding funding is near zero. I can tell ur excited and that is a good thing...I just hate to see you wasting your time if not able to follow Tammy's advise.

Best of luck girl.

to prevent you from putting in an all cash offer, NOR having the loan in place BEFORE the offer. Maybe she means a pre-qualification or a pre-approval, but if you are making an all cash offer, that is a moot point. People buy REOs all cash all the time, using HML and PML with a POF from your end buyer or even in some cases, a transactional funding letter will do as POF. That way you don't have to show that you are qualified for a conventional loan at all.

You probably don't come across them often. But you also need to consider how many people are going to be BUYING 7 BR SFRs?

You don't want to get stuck with a white elephant!

Not all deals are really deals.

$5 million home for $2 mil sounds good and looks good on paper, but, what size group of ppl do you have to buy it. Even a $40k home doesn't work here for me in my area, median priced homes are $325k-$350k, so thats the market I target.

You have to focus on the LARGEST number of buyers and try to get those properties that they are interested in. This will give you a better chance of selling the house quickly if you don't already have a buyer.

Of course if you have buyers that are only interested in certain price/types/areas of property, go there.

You mention L/O...as in lease option? Being an REO, the bank probably requires proof of funds. Not impossible but a difficult way to do a lease/option deal. If you do find someone to fund it, realize you will be responsible for the payments if the tenant/buyer flakes...no giving it back to the owner after the lease period expires.

Lots of agents are doing this to cut down on wasted time. What she should do is have the buyer pay for everything or buy directly and then get paid at or after closing.

I always submitted a POF letter with my agent from a certain transactional funder who would verify funds if they were ever called (VERY important). Its a shame agents feel they need to do things one way and don't allow for creative offers. I understand there are a lot of investors out there that ruin it for others, but to punish everyone with the same requirements as a retail buyer is not at all fair and seems to be a disservice to the seller (just my humble opinion). If the offer is being made all cash, and the POF can be verified, why is it the agent is the one to allow that offer not to be made to the seller?

Also, on REOs most are not assignable, but if you have a buyer's POF with the offer, and you put 'subject to partner's approval', why wouldn't that be a legitimate offer? Also, you can offer in a name of a trust, include a copy of the 'direction to the trustee (you, the one who's acting as the trustee for the buyer) and then the name on the POF bank statement is irrelevant. This is how I successfully made MANY offers, and we got a proof of service to the seller in writing as well.

Spooky; it makes RE Agents sound like the CIA or FBI when they have the right to sift and screen offers and not allow the the seller to see them.

Its not just your office-

Here(Charlottesville/Albemarle VA) REA won't WASTE their time on anyone who has not been prequal/approved or has legit POF/bank statements.

I can see where creative investors can get upset.

However, the new 'investors' don't realize the time and expense that the REA have, and to waste time on someone who has no clue,credit or cash and is not going to happen. Give them a calendar and wish them well.

What I would like to see you list on your deal would be something like this.
general location, type of neighborhood, size of house, year built, condition of house, purchase price, ARV, cost of repairs, comps, taxes, all of the pertinent information it would take to see that this is a good deal that presents a great profit opportunity.
As for a POF you can get that from most transactional funding companies. Most of them will provide this at no cost. You can get one for any deal you are making an offer on.
Good luck on getting your deal done and I hope to see you posting many of your deals on here.

Just so we are on the same page, you are pursuing this as a lease/option deal, correct?

Hey Tom, how have you been? My understanding is Kathy wants someone to purchase a REO and the do a L/O with her tenant/buyer, with her getting a finders fee. Is this correct Kathy?

If so, does the REO need work? Most do. Is it listed on the MLS? Also, for the money to follow you usually need control of the property and make a professional presentation to your buyer.
Purchase price, repair/remodel estimates, amount of equity backed by a current and accurate CMA, local rental rates, taxes, utilities Etc Etc.
When you have an ACTUAL deal and present it properly, the money will find you.

Why don't you make an offer on this REO property yourself, double close to a buyer using transactional funding and then the buyer can do whatever he wants, in the meantime look for a distressed homeowner you can negotiate with directly and do a L/O that way?

Michael Mangham
MD Home Acquisitions LLC

You must understand this; investors like yourself are a rare breed.

Nowadays everyone and anyone who can read a book and post signs thinks they are investors and the truth is, they are not. My office's business is literally 97% cash investors, 3% end users/first time homebuyers. With that said, we are in a position to be very choosy and picky when it concerns perspective buyers.

Also, this saves all time and headache, especially when the buyer cannot close or even come with money at contract. I've always said my time is valuable and I just dont have the time nor the patience to write up agreements and order inspections and show properties to someone who doesn't have the knowledge and money to buy.

If you're experienced and can explain to me, i'll work with you, but I can afford to be picky because all the homes we get we sell. Monday my office got an inventory of 30+ REO's; as of yesterday, 17 are in the process of going to contract and can close this time next week.

Not a knock to you, but here in NY and i'm sure in Cali, there are too many frauds and there unfortunately will be collateral damage sometimes

I never expected to see such a great response from my original post. I was merely trying to get some brainstorming on how to buy and hold the 7 BR SFR and lease/option (rent to own) to my daughter and her family.

You are so correct, Michael Mangham. It is listed in the MLS and does need repairs. That's why the price of the REO seems affordable.$70,000 for a seven BR. Your suggestion "in the meantime look for a distressed homeowner you can negotiate with directly and do a L/O that way?" is the most sensible just as the other Mike's (reinvestor42)comment to search for a FSBO.