First deal- need to take control

First deal- need to take control

I'm new to this, about 4-5 weeks, and I 've been studying and researching dilligently. I have no money or credit.I finally took action and put some ads out there, thanks to Rina and the others,and had a gentleman call wanting to sell 3- multi units. Being new at this, when I talked with him, I told him I would buy them for no more than 65% FMV/ARV.Fake it till you make it! LOL.

Well, he sent me back a comp value of the property-$460,700, a quick sale price of $300,000 (65%). They are fully rented- 2 leased- 1 not leased- with a monthly income of $3487..He also sent me recently sold comp properties.

I'm doing all this from reading Dean's book and mostly forum topics. I print out all the good topics and keep them in a folder to use them when I come across something like this.

I need to take control to assign.

Next time I talk with him I will ask all the questions about the property:How much do you owe, are there any liens, etc.

I told him I want to see the property as soon as possible. Then I have to lock it up. Here's where I'm intimidated. Do I sign a purchase and sales agreement, with and/or assigns and give a deposit? Which forms should I use, the one in the files section or a state P&S? It's all coming at me real fast! LOL. I don't want to mess this up. Contracts are the only part I get overwhelmed with. I read Anita's P&S, the one that's filled in. Should I use that as a template?

I can really use some help on this one. Then I'll know what to do on the next 2.

P.S. I have a couple of end buyers lined up.




Form your team, who is your Attorney going to be? You should have a Realtor file the Offer or the Purchase and Sales Contract. Then get a home inspection done by a licensed Home Inspector. Also, financials, anything that the owner pays for; trash, snow removal, upkeep.....


Agent Greg
Century 21 Franklin Street Assoc

Next step.

Thanks for getting the answers going, Greg.

Bob, you don't have to use a realtor if there is not one already involved. That will save the seller $9K-$18K, which he may pass on to you. (Is there a realtor involved on the sellers end? Do YOU already have a realtor you WANT to use?)
What state are you in? You can print out a state-approved purchase agreement online (I'll find the site if you're interested), or you can use the one provided in the forms and docs on this site. Make sure you include whatever contingencies you want to use. Sounds like they're already under the assumption you have partners, so that would be a good one. You can also use the inspection and financing clauses. Then (from what I've learned here so far) you sign everything and/or assigns, like on Anita's. Give yourself as much time as they will agree to for a closing date (45-60 days). Having your end buyers lined up already is a HUGE plus! Good job!

If you have a Real Estate attorney, you may want to have him look over the purchase agreement with you and give you any legal advice. (But you don't HAVE to.) Sound like you'll be buying from another investor, so you at least want to have enough knowledge to understand what HE might ask.

These are all just suggestions. Hopefully you'll get enough response, you'll have enough to map out what you will do.

Rooting for you on this!



"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

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Yeah Bob, you got it.....

You will want to have you and the seller of the multi's sign, like you said, a "PURCHASE & SALES AGREEMENT" that will do just fine. As for making the contract ASSIGNABLE, either attach an ASSIGNMENT CLAUSE or you can write AND/or ASSIGNS in the buyer field after your name, Then you WILL give a DEPOSIT but not to the seller, but to the TITLE COMPANY to "HOLD IN ESCROW"(you dont NEED a realtor to make your offer for you, or to file the purchase and sales contract for that matter) The DEPOSIT is what legally binds the agreement. Anita's filled out contract is a good template to go by(if you live in California) every state is different, let us know if you need anything else, SULLY



Got more info

Thanks for the response guys and gals! I live in Mass. by the way. I got more info after I left him a message to call me back.

I knew he was an investor, so I asked him if this was his property or somebody elses. He told me it is a short sale and he was trying to put it under contract and I could look at it by Saturday. I have an end buyer that says she will do short sales.

Now I'm thinking, what's going on here. I'm asking myself ,if he's an investor, ("----- R.E. Source", I'll leave his name out )why is he contacting my ad without having this under agreement or why doesn't he take care of it himself. I know I do the same thing, contacting end buyers. I thought I had a good hit here for a moment. I'm not giving up! I have my fingers crossed.

So now I have to go back to the drawing board.I'm scraching my head on this one.It's a challenge, I know it!

My question is: How do I go about this? This is a short sale that may go under contract and will be negotiated at 65% of FMV/ARV from what he says.If he's dealing with the bank ,how am I going to assign this? How will I put this under contract?

The other question I 'm thinking is, why is this a short sale if the 3 units are rented? $3487. seems to be more than enough to cover the mortgage, but then again I don't know the specifics.

What questions would you pose to get all the information I need from this deal? Why can't my first deal be easy? LOL



So, you are looking to assign his assign?

If you have a buyer and your are his buyer and "The bank" agrees to the short sale and there is enough equity/profit to pay all parties, it should work just fine. I have been in that spot twice but never had a bank agree to the short sale.

Keep pushing forward!!!!!!

DeJor Properties, LLC

Wanting to assign

Doing my homework, I found out that the property was sold on 6/30/06 for $480,000. He sent me over comps at $460,700. and told me he was trying to put it under contract for $300,000.(65%). He's an investor looking to assign, I didn't know this at first. Boy do I have alot to learn.LOL

How would you deal with this?

I have an investor who only deals with short sales and wants to "reward me accordingly". I hope he doesn't mean a cheese sandwich!

My first end buyer (investor)knows that this is an investor I'm dealing with and is a short sale, but doesn't know he's trying to assign it to me. I told her I'd keep her posted.

How can I make this a win/win situation? I not giving up on my first one !!



This thread is going to teach me alot about this subject! I cannot offer one stitch of advice, but am anxious to keep reading to see how it all works out. Learning through each others experiences here is invaluable!