Setting Up A Deal

I want to first thank all the educators out here. I really appreciate the hard working knowledge you have given us all. You were the ones to motivate me to get off the computer and start rehabbing. I found a new world. Thanks again!

Now the question. I am looking at my first FSBO. He is coming to town this weekend to show me this home and already from the outside appearance it looks like a wonderful deal. Here are a few of my questions:

  1. How do I make the offer and get the ball rolling?
  2. Will he have all the documents ready or should I get them ready?
  3. Should I ask for owner financing (how do I do that) or go through my typical mortgage broker?
  4. Where do we go when he accepts the offer (title co.)?
  5. Should I pay my realtor a few bucks to get the whole thing rolling?

If you can’t tell I have a lot of questions with this and I would appreciate all the info you can give me.

Thanks again for all of your help.

Hey monnchew - looks like a start for you - congrats!

1) How do I make the offer and get the ball rolling?

Obviously in writing. You note some Realtor involvement. I would see if I could get a NAR blank form from him/her.

2) Will he have all the documents ready or should I get them ready?

The seller may have a contract, but be prepared with one of your own – see my comment in #1.

3) Should I ask for owner financing (how do I do that) or go through my typical mortgage broker?

I would try to get the seller to finance. That is always a great going-in position…I would also be ready with your own lender (if you need one) if he says no. If he says ‘no’, see if he’ll finance a part of it…

4) Where do we go when he accepts the offer (title co.)?

Depending on your state, I would close with a title company or a lwayer. Some states (like Georgia) require a lawyer some states dion’t care…I had several properties in Louisiana and you can close at either one there. If you find a good closing attorney, they’re usually RE experts in their state’s laws and can be worth their weight in gold. The attorney that I used to close would give me free advice on lots of stuff (RE law, establishing an LLC, etc.) because I closed several deals with him.

5) Should I pay my realtor a few bucks to get the whole thing rolling?

Has your Realtor helped in any way? If so, a payment may be in order…if not then try to swing business his/her way – either thru your own dealings or thru referals. Realtors live and die by reputation and referals.

My two cents – hope it helps,

Keith

Keith,

Thanks for your two cents…it seems more like a pound of gold.

You mentioned a NAR form. Does that cover all aspects of the offer, acceptance, etc.? How difficult are they to fill out? I believe Michigan can use a title company without an attorney. Is there a way to find out…call a title co.?

If he does accept to finance it, how do we establish terms (length, monthly pmts., interest, etc.)?

Thanks again for your help,
Brian

<<You mentioned a NAR form. Does that cover all aspects of the offer, acceptance, etc.? How difficult are they to fill out?>>

It covers most everything, the NAR = the National Association of Realtors. A local Realtor will have the forms that are used/approved for the local market.

<<I believe Michigan can use a title company without an attorney. Is there a way to find out…call a title co.?>>

In a lot of states, you can do it either way…there are a lot of folks on these forums form Michigan, so maybe they will weigh in on what they do. Usually, the cost and the services are about the same. Call the title company and ask them the salient questions – Hom much? How long? etc.

<<If he does accept to finance it, how do we establish terms (length, monthly pmts., interest, etc.)?>>

It’s a negotiation process…you want things in your favor, he’ll want them in his…you’ll settle in the middle somewhere. Make sure what you settle on is clearly stated in the contract. When you give the contract to the title company, that’s what they’ll use to draw up the requisite documents and the closing details.

Keith

I’m a newbie from North Little Rock, AR
And I have kinda the same question?

There are several FSBOs here in Arkansas
How do I actually get started?

Make them an offer…put it in writing…in between, study some more!

Keith

Here in Michigan you can use a title company.

mon,

here is an easy way to get the correct info: go to your local title co and tell them this: “i want to sell my house without a realtor. How do i do that in MI and what paperwork do i need?”

Thank you so much for your info. I feel more confident meeting the seller tomorrow.
You know, this is how it all starts. Put one foot in front of the other and learn as you go. Thanks for the support.
Brian