Alright guys, im still new to this, how do people get all these properties so cheap? People are saying they’re getting properties for like 40,000 dollars, is this by doing subject to? and can someone tell me what a wholesale or contract assignment, and a double closing is, and how i might set them up?
thanx
beaver124
Howdy Beaver124:
I currently have a duplex under contract for $12,900. I saw another seller for $4900 but I missed it. The $12,900 could use some $10,000 in work but it could be rented for a few grand in repairs. This one is a Fannie Mae foreclosure and is all cash. Even though it is cheap it will only appraise for $30,000 after rehab which is too low to buy and redo and flip but is going to make a good rental deal at $250 per side. I have others that are VA foreclosures as well. These are located in Killeen, Texas and what I consider a City on a fast rebound. Values will not be this low long with rising rents. I would like to do 100 of them.
Contract assignment is where you gat another buyer to assume the contract and buy the property instead of you. Wholesalers do this as well or actually close the purchase and resell. A double closing is where you buy and resell at the same time without the seller and your buyer meeting. You are usually getting a lot more than a few grand for doing an assignment. Some use $5000 as the cut off between assignment and double closing. Your title company can help you set up a double closing or assign the contract in most cases. The actual assignment is easy and can be done in one paragraph. Make sure the contract you sign to buy the property is assignable…
thank you, but i still dont understand how the prices you get are so cheap…is this just because they are apartments, not single family homes? i mean ive seen people get single family homes for lik 40000. can you tell me why that is?
thank you
beaver124