Might have my first deal!

General Real Estate Investing
1

Hi,

I might have my first deal under my belt, but I want to make sure I’m doing this right.

I ran across a fixer upper in a decent but older neighborhood.

The gentleman lives in another city, and is unable to look over the property.

Asking price - 50K
25-30K in rehab
ARV 100K

Now I want to assign my contract to an investor. Here’s where I’m not too clear.

I know I have to get the title work done myself, but do I also have to get the inspection and/or appraisal done, or is that done by the investor?

I’m sure they’ll be more questions within the next couple days.

Thx! :slight_smile:

2

You know it really depends on how easy or hard you want to make it!

Here is how I do it in a nut shell

After my company finds a property below market

  1. get a contract

  2. get good comp’s (from our appraiser)

  3. Pull a basic ownership and encumberance from title company this will show all liens

  4. find a new investor that want’s the deal in your deal there is about 30k after repairs So I would charge 3k transfer fee up front.

  5. Call seller and tell him everything is the same except buyers name and get a new contract after you recived your $$$. And check cleared the bank.

6.Find 10 more if you can do 10 a month at 3k each you will be O.K.

Notice I never got title work or appraisal done not even a property inspection. This is Robb’s simple way to bird dog! Most make it to hard!

Everybody please note I never ever thought Robert Keyosaki would be asking me for advice LOL

3

Howdy Robert:

I would not get the appraisal done for sure. The buyers lender will order this and will have a list of pre-approved appraisers or even do it in-house.

More than likely the buyer will also have their own inspector they like to use or do it themselves. Since the inspectors charge at least a couple hundred it would be better to wait.

You may want to offer $40,000 to get the ball rolling or even $37,500 and try to buy at $45,000 or less. You need to be around $70,000 total including rehab if the buyer is using a hard money lender.

4

;D LOL…Thanks REO. I really learn a lot, and get a lot of motivation from all your posts. I’ll be calling him back this evening to get this rolling

Thanks again ;D

5

Hi tedjr! I am going to try to negotiate from 40, and see what happens. I didn’t make an offer yet, he just gave me his asking price when I called him today.

TY!

6

Robb’s rule of thumb never offer a even number offer something like 37,856.25 that way human psych kicks in and they come back at 38k and you say great where as if you offer 38k they come back harder like 45k it seems to work also by doing it this way people think that you really did your homework as far as what the property is really worth! Hope this helps!

7

I don’t know if this deal’s gonna happen or not. They said they have someone else intersted in the prop.

They’ve accepted my offer of $46,382 (Thanks Tedjr and REO) ;D , but haven’t gotten it under contract yet because of “other interest”

I balked before because I think I under-estimated the ARV at $100K, but after discovering DITECH just yesterday (which seems to be VERY accurate), the average ARV would be 132.5K (106-159 comps)

ARRRRRGHHHHH!!!

So hopefully I can lock it down.

As soon as I saw this, I called them back and said it’s best to get it under contract (didn’t come off as anxious) , and they said the they will contact the RE attorney to set up a time. We’ll see what happens.

Thanks guys! This business is FUN! :smiley:

8

are you using the free “e-appraisal” on ditech.com? What are you using on Ditech to get your figures?

9

http://www.ditech.com/calculators/appraisal/form.do :slight_smile:

10

Much thanks!