OfflineWell, I finally did it. I made my first offer on an REO with NO MONEY DOWN! Unfortunately, I had to bypass my friend the realtor because she was holding me back with a bunch of excuses of why my offers wouldn't be accepted. I went direct to the listing agent. We did everything by email. Here is the run down...
3/2 SFR 1226 sq ft
ARV: $124k (conservative)
Repairs needed: $20k (on the high side)
DOM: 111
Asking: $104,900
My Offer: $60k
My plan: To wholesale the house to another investor for $10k. I will be surprised if the bank accepts my first offer, so I have a max offer of $70k. Even if an investor socks the $20k into the house, they'll still have $25k in equity plus their payments will be around $800 a month and the rent is $1300. So, they have good cashflow with the property. Ohhh, I'm excited!
KimmyJ
Kimmy, we used the land trust method on the first offer, and we are going to try your other idea (quick claim) on the other house. We thought we would try some different ways and see what kind of responses we get.
Since my deal didn't go through, will you please keep us posted on your offer with the land trust? I'd like to know how your buyer received the concept of the land trust, etc.
CONGRATULATIONS!!!!!!!!! WOW ! 1st Deal ! This is so Inspiring! Keep us informed! ~Bob
Hi Kim. Of course, we will keep you updated on our offer. We were gone for 4 days and were hoping to have heard back when we got home, but no word, yet. I guess it takes a little while. I've been reading alot of posts on this site that I hadn't had a chance to look at before, and it seems like quite a few people are still using and/or assignee. I think we will try that on our next offer and see how it goes. We have another house we want to make an offer on tomorrow, but our realtor is strongly suggesting we don't use and/or assignee. I think it's worth a shot. If they come back saying they don't like it, can't we re-word the offer? I wish you could make it to the REI Club meeting! Talk to you soon!
Try putting the and/or assigns in the addendum and see if the bank pays attention to it. I'm going to try making offers in my name, then add the end buyer to the title, let them close with both of our names on it and then quick claim the property. Believe me... I let the guy hang on the phone for 3 minutes deciding on whether I should accept the meeting time or decline and go to the REI Club meeting. Unfortunately, it has been hard to nail down this guy, so I had to take the appointment.
I think that strategy seems pretty clean and simple. I like it!!
We'll both get an offer accepted one of these times! It's great being able to bounce these ideas off one another. How would you word the and/or assignee clause in the addendum? Something like, "Buyer has the right to assign contract to assignee..."? How would you word it? We'll tell you all about the meeting tomorrow. Talk to you soon.
As KimJ said before (and from Sam...Northwest as well)in her land trusts threads, you can consider using the verbiage "exact funding TBD at closing". The worse that could happen is that they will not allow it. This might be a way of going around the assignment clause.
Neil
Yes, I like that verbiage. We put: "Dom and Kim, trustee, exact vesting TBD at closing" on our one and only offer. They haven't responded, yet, so we are anxious to see how they liked the wording.
Of course, they may not like our offer amount and we'll never know how they felt about the verbiage! Guess we'll see!
Thank you for the links guys!!!
You don't know how long I have been trying to find REO listings. Finding a good agent is very hard this days.
Thanks again!!!
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Could someone post that list again. I missed it somehow.
Thx a mil+
The links are back in this thread - scroll back and you will find a post with three awesome links in it!
Thanks again - great resources.....
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404