Hello All. I contacted a fsbo at the end of August 2006, built rapport, and was able to get the asking price down from 327k to 303k (Northern, Ca). However, that wasn’t low enough, so I wished her luck. Just last week, she contacted me, and is now willing to accept my initial offer of 270K on a 4bd/2ba. Comps between 320k and 350k (I think). I say “I think” because this house is newer than others in the area. It’s like someone took two empty lots and built two new houses (this one and the one next door) in 2004 in a neighborhood with houses built in about 1993. The house is a minor fixer (needs yard maintenance/paint).
The problem (or maybe not a problem) is that the house is now advertised for sale by a realtor. I guess my question is does the realtor still get a commission even if the homeowner found me and not the realtor?
Also, if all goes well, this will be my first deal. I plan to ask the homeowner to take $220,000 at COE and $50,000 in 36 months, and try to get the owner to pay all the closing costs. And I want to assign the contract… so would I simply see if the realtor is wiling to accept a $10 deposit?
Next question is how exactly do I build a buyer’s list?
And… if I get this property under contract, who takes care of getting the fire insurance and other things? Do I need to have that in place before I contact a hard money lender to close this deal incase I cannot find a buyer?
sounds like you need a plan “B” and an exit strategy. FIRST.
Okay. But even with a plan B, I still may have some of the same questions. So even though they may not be grade “A” questions, is anyone willing to provide the answers?
i mean this in the best way. you’re all over the place.
what mc is suggesting is
know what you want to do.
from your post, it doesn’t seem you know what you want, or how to do it.
you’re talking about making a 270,000 purchase and it’s clear you don’t have an exact plan of action.
if you want to assign the contract, then you will not be making any repairs - if you assign it - it is up to the assignee (buyer) to obtain insurance, financing and the like.
it helps if you, the assignor, can assist the buyer in getting financing and the rest of it, to make the deal happen.
it took me a while to realize that many investors have all the corners covered. not only do they have the property, but they’ve got all the options and referrals to MAKE THE DEAL HAPPEN.
this and other things like your own financial backing and VISION are necessary BEFORE you even consider attempting to contract a property.
you’re already “investing”…because you’re putting in the time to figure this out. that’s awesome. seriously.
just hammer out what you want to do, exactly - step by step with the contract clauses that support it and financing to BACK IT UP.
and heck, if you want to wholesale the deal…with the right clauses and sellers agreement to them - maybe you don’t need financing.
if you can’t assign, you walk…or extend the assignment.
Thank you for spelling it out for me. I appreciate it.
In the future I would look for the buyers before you look for the houses, great deals come up all the time but great buyers are not always easy to locate. Once you have strong buyers the world is your playground.
If you have a strong financial backing then you have a good deal from what it appears.
Can you afford to make the payments on the property for the next 6 months?
Have you considered doing a lease option on the property?
Do you have any buyers in mind with the ability to purchase the home?
Have you contacted the owner to see if they put you on the realtor contract as a reserved buyer, or do they have a clause in the contract that if they find the buyer they can get out of the contract?
If the realtor needs a high deposit write in the contract that the deposit money is to be put into escrow after all contingencies of the P/A have been removed.
What is the home currently listed at. If it is listed close to the price that you are offering, is it really a good deal?
Why is nobody else buying the deal if it is listed?
No need to answer these questions in the forum, they are just a few of the questions that I would be asking before I did this deal