I have finally got a FSBO to work with me giving me a contract to purchase with addendum stating I dont have to buy until i have a 3rd party buyer… Does this sound right… at least i can getout or not have to purchase… however i dont have a large enuf buyers ist to put someone in this nice house…
Am i doing this right ? Is this how it suppossed to work ?
I understand creative offers but dont know any other way to go about doing this so that it all works out at the end…
What do I do with these deals/ houses once i have had an offer accepted so i dont have to purchase personally… I think im missing a piece of the REI puzzle…
Once i get the offer accepted - what do i do to make this all pull together?
Any suggestions as to what to do once offer is accepted… and what to do with these motivated sellers homes…! I guess ill need it spelled out for me…
Your suggestions are really appreciated… Thanks in advance…
so you have a signed contract with assignment rights. i’m sure there must be a deadline of sorts. who’s going to sit around and wait for you to find a buyer, unless you’re paying them 50% above market value or whatever.
the key is to find a buyer - you’re going to need to advertise, network, get out there and find a customer.
technically, if you’ve never done this before, it would be smart probably to find a few prospects BEFORE you offer/sign any such contract or at least have a game plan in place of where/how to market to get’em.
I have it under contract for two weeks… not really long enuf… This is a FSBO who has been tring to sell for the past 5 mo. @ 235 and i got him down to 220… so i can try to market for more higher attracting buyers with signs bad credit, owner financing, no bank signs… Do i have something here… I am tring to build a buyers list… and am using a fellow investors.list . but his prospects are a lil far away from my area… on this house we got a few leads of people looking to buy for list… anyways if we get nothing a all at least we build list… am i crazy…? am i not doing this or getting it right ? like i said Im a noob and am tring to figure this all out and put ll pcs of this rei puzzle 2gether! Does it sound as if im on to something here… or am doing this right … i mean if there are motivated they will come dwn and sign… This strategy im using is what i guess forquick cash
this is a owner who’s selling for 235k and you got him down to 220k
you’re margin is small man. i mean, we’re talking less than 10%.
i mean, unless the market you’re in is ultra hot, for me, if i were to utilize assignments for “quick cash” - my margin would have to be more like 30 - 45%. no what i mean?
so, if the value is 235k - you should be picking this sucker up on assignment for around 170k at the most.
this doesn’t sound like you’re dealing with a truly “motivated seller”.
you sound more motivated. good to be motivated to make money, but bad for being motivated for buying.
let the two weeks run out and move on. you have any earnest $ at stake here?
This is a purchase contract which can be assigned… I know the price is a lil higher then id like but i fiure if i can sell for 225K i just made 5k with no money of my own… heck give me 222k… Im not actually purhasing it until i find a buyer… they cannot sell until 2 weeks expire( i will probably up this to 4 wks in a slow market ) I see your point but want to make quick cash so i can work other aveenue of rei investing… It doesnt look like this wil sell it two weeks but worth a try… and get to build my buyers list… I got 9 calls all together…
So for other methods like offering 170K what will i have to do purchase ? How would i get out from doing so if i dont want to tie up my funds… What would i do with property… I wouldnt want to hold or incurr any expenses… Whats my exit plan for these… The way im doing it has easy out & lil risk on my part with poss. of QUICK Cash.
So if he can’t sell it at $235k what makes you think you will? If you come down only $10k you’re cutting your profit to only $5k…as I heard someone here say that won’t pay a bar tab. You’ve gotta find them more motivated than that or you just wasting time.
i’m talking about doing the same thing you’re doing - assignment.
make an offer of 170k, same as you did for 220k and do it the same way you’re doing it now.
the only difference is, if you get someone who’ll accept 170k or 30% or so below market for their home - you’ve found a truly “motivated seller”. you’re signing the same contract, it’s just that you’re doing two things:
offering the original seller - less money.
increasing your assignment fee to the buyer/assignee that you get to purchase the property.
now, at 170k, or heck, 180k, you’re margins are much greater. NOW, if you sell it for 222k - at 180k contracted price - you’re making 42k, not 2k (2k is just not worth it, on a contract price of 220,000)
a 2k assignment fee is more like in the area of a 15,000 contract price.
know what i mean? i understand you’re thinking if i can make a quick 2000, that’s good. but that is NOT good real estate investment and a terrible business proposition.
now you’ve said repeatedly, that you entered this deal with no money and no obligation to buy…i’m wondering what seller would sign anything that does not hold a buyer/assignor to a purchase contract. are you SURE, you have two weeks with an option to increase the assignment period to 4 weeks, WITH NO OBLIGATION TO PROVIDE EITHER SOME FORM OF EARNEST MONEY OR AN OBLIGATION TO FULFILL THE CONTRACTED PURCHASE?
On the other hand I have done deals for less so it can be done the only OUCH about it is the two weeks deadline and the whole I finally got a FSBO to work with me. Don’t get me wrong 10k or 5k or 2k is still more then you had before. On the other hand I would be doing 5 a month at least at 2k per deal to make 10k a Month. The sad fact here is you would be better off going and getting your Realtor Lincense and making 2.8% on the listing. And I am not a huge fan of Realtors.
On the other hand for everyone that knows me I met a Realtor I really like.
I guess your right … this is my first one… I just dont kow how to go about getting out of a deal i dont want to buy… having a good exit stratigy. This is why setup this way… Reguardless what he wants it didnt cost me anything really with a chance to make anywhere between 220-235 ( 235 is fair market value all rennovated ) What seller will accept what im offering… one who is somewhat motivated in hopes of utilizing by buyerslist and marketing… Eitherway if i sell or not at least i get some calls from buyers to add to my list…
I will try to get 30% below once i build my list and figure this all out…!
Thanks for feedback everyone… If you have some better plan or ideas please share em… my fear is in having to actually purchase the deal… if im giving em only 70% of value they want to close… and im tying up property to purchase sell and or assign to third party buyer when and if i find one… does this make sense… ? dont forget this is my 1st deal under contract… I need to refine my system while keeping my risk low… with easy exit stratigy… thanks all !