Questions about: making offers & contracts

General Real Estate Investing
1

I have a list of homes that I would like to make offers on. Most of them are bank owned foreclosures.

Some of them I plan to fix up and rent, some may be sold after fix up, some I plan to wholesale.

My plan as of now is to buy with little or no $ down. The houses I have found seem to be priced well under the comps. PLans are to get a 70% ARV loan and fix them up.

I have questions about making offers and the contracts. Most of these are bank owned. Do most of you use a buyers agent to make offers? If so how do you go about it? Does your agent have a format they use? do you use your own? what terms do you use on the offer? Do you make the offer to the listing agent or do you try to make it to the owner/bank? what “outs” do you create for yourself in the offer?
If your offer is accepted do you use your own contract for the sale or do you use your agents or the sellers agent?

I wanted to make an offer to a realator one one property and she said I had to use their contract and had to have a preaproval letter or proof of funds (if paying cash)

This is my first deal so I am learning how the system works, any help would be great

Brook

2

Brook,

If you are making offers on REOs you will need to use the standard realtor contract for whatever state you are in, or, the bank may have their own contract that they require you to use.

Most banks (if not all) will want to see a pre-approval letter from your lender if you are financing the deal, or proof of funds if you are paying cash. You will also need a deposit of some sort.

You can either make the offer through the listing agent or a buyer’s agent- it’s up to you.

As far as “outs” go, you can put as many contingencies in the offer as you would like (financing, inspection, etc), but keep in mind, the more contingencies you use, the weaker your offer looks, and the less likely it is to get accepted.

Hope that helps,
Steph