Hey Everybody,
I’m brand new here and I’d just like to see what you all thought of those buying and selling home infomercials for no money down. I recently went to one of these conferences near my town out of curiousity. It was free so I figured I’d check it out. In a nutshell one way they explained buying homes and selling them was to find an abandoned home and get in contact with the owner. Since the house was obviously doing nothing but costing that owner money the conference speaker said to get a contract with the owner stating you could sell his home in 60 days or less, if the sale didnt happen each party would walk away from the deal. The idea with this was to get the owner to sell at a price as low as possible. The next step was to put an add in the paper for somebody who fixes home. While negotiating with the home repairer the idea was to get him to offer a price for the house higher than what the original owner was willing to sell it and also get the home repairer to assume closing costs and then have him sign a contract also. Finally the speaker said you do something called a simaltaneous close??? and he said it would be possible that money would exchange hands without the original owner or home repairer ever meeting.
My question to you all is have you heard of such a method? Is it legal? If so any suggestions on how to go about making the contracts and what should be on it. He also mentioned you should have a third contract a CYA (cover your @#$) just incase there were some unseen debts associated with the property.
Anyway any advice you could give me would be greatly appreciated
Thank you
Chris
What you are talking about is called flipping or wholesale and it is done all the time. A double close is that both closing happen at the same time or day where you buy with your buyers funds and do not use any of your own money. I have seen it where you have your seller in one room and your buyer in another and there you are in the middle going from room to room to get the deal done asap. It can be profitable. Now for the bad news. Hard to find owners of abandoned houses, hard to get them cheap, hard to find a real buyer with cash that can close quick. 60 days is a long time to close too when you find an eager seller. They want money in 24 hours. Your buyers too want to take 60 days to close where they can raise the $$$. They are trying to sell you books and will fill you up with all kinds of hype. Quit you day job and drive a Rolls tomorrow and live in a mansion and only work an hour or two per day. Ba hum-bug. Most know some about real estate and some are very good. Stacy has a website that helps folks decide which are worth while realestatecoursereviews.com
I do not know what you mean by a third contract. It could be a back up offer from another buyer. Or It could be the fact that your contract is subject to a title company inspection of the title to the property.
The contract forms are available here in Texas and in most states on line. They are available too at title companies. You may want to get a friend or someone to help you make your first offer when you get ready and hopefully they can help you learn the forms etc
Hope this helps a bit
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile