OfflineKinda of a newb question here, but bear with me cause i dont want to be unprepared. What can one expect when the seller and the buyer sign the purchase contract (where the buyer has the intention of assigning the contract). What happens now and what is the buyer supposed to do now? Does the sellers agent give you keys to the house? Do you take the copy of the contract and take it to your lawyer, do you immediately start marketing the property to your end buyer(thats probaly obvious), if your end buyer would like to see the house, how would you show it to him since you may or may not have the keys?
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Check out assignment in this forum http://www.deangraziosi.com/node/42 It should be able to answer all of your above questions.
KimmyJ
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got my offer accepted, and now about to sign the purchase contract with the realtor in a few days. Do i just print out the inspection addendum from this site itself and hand it to him and explain that i want an inspection clause, or would he have the paperwork for that? I've also heard of this "Earnest money will be due in X amount of days or this contract is null and void" clause which allows me time to get the earnest money from my end buyer to pay the seller. Do i just include that quote as is in the purchase contract under additional terms or is a seperate addendum like the inspection contingency? If and when i get the EMD from my end buyer do i have to open up an escrow account? or hand it directly to the seller, kinda confused on that part. if anybody can enlighten me on some of these points I'd really appreciate it.
Once the bank approves your offer, they will send you an addendum. You need to tell your realtor that you want him/her to add that your EMD is due at end of inspection period. You will give $100 now and pay the rest after the inspection. I don't know where you live, so I don't know if you have a built inspection law? In CA it is 17 days by law. I would try to get at least 14 days. If the realtor asks why, tell them your business partner is out of town and won't be back for another week or so. He needs to see the house repairs before you can go any further. At least that will buy you 2 weeks to find a buyer. Did you sign the contrat "and/or assigns"? Or are you doing a double closing? Also what are the numbers? ARV, Repairs, etc.
KimmyJ
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KimmyJ
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I live in NYC. I dont have a realtor, havent really found the right one yet, so im basically representing myself. I'm actually having trouble finding the inspection law for nyc, have no idea how long it is. I'm going to sign the contract "and/or assigns" because i plan on assigning it. i used the coastal funding POF letter so i guess i have to double close on the property? Its a short sale, im locking it up at 135, comps are ranging from 200-210. the house could use some tightening up, but no immediate repairs are needed, its livable, so ARV is not really relevant. do i need to do double closing or can i just take my check from the end buyer and walk away? If i cant find my end buyer, would i lose my hundred dollars? is there a way to not pay anything upfront and get all money due at the end of inspection?
ARV is always relevant regardless of repairs. Right now you're at 68% of FMV. What does tightening up mean? Does it need new paint and carpet? Personally, I would try to get the house at 50% FMV and work my way up to 58% MAO, if you plan on wholesaling it. End buyers are not going to pay more than 75% FMV in excellent condition. If the bank accepts the and/or assigns on the contract then you can just assign the contract to your end buyer and walk away. If not, then you're going to have to do a double closing. Your realtor should know the inspection laws.
KimmyJ
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I found a great home & the deal can be very profitable.
The home is listed thru a realtor. I got the info on the owner/seller. Do I
bypass the realtor or make my offer to the seller directly? What would you do?
thanks,
Serena
Did the owner contact you directly? If so, bypass the realtor and deal strictly with the homeowner. Alot times (in Iowa) realtors will reduce their fee with the homeowner if the homeowner gets the buyer. I'm working with a homeowner now, and he has to pay 1500.00 instead of 3600.00 since he got his own buyer if we get the contract signed and into closing.
Destrie
Destrie
Failure Is Not An Option