OfflineI am about to make my first offer on a Bank owned property. I am offering them a multiple choice offer. Two of the choices are tied to 100% financing. The other is a cash price.
The first is lower price with higher rate of interest and the second is with a moderate price and a moderate interest rate.
My quesstion is when offering 50% of value as a cash offer what outs do I have if I do not infact have the cash right Now?
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We purchase and resell Homes. We also buy mortgage notes. We also take some debt takeovers.
First I would ask why are you offering cash if you don't have it? Do you have a buyer's list and feel extremely confident you can wholesale it? Put in an inspection contingency you can use as an out.
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
How long would it take for you to get the cash? I've had credit card convienience checks be available immediately and also in 10 banking days.
A contingency clause could be:
Subject to whole house inspection with results satisfactory to buyer.
You want the results to be a "yes I like them", or "no I don't like them" otherwise if it's just subject to inspection, you pay for the inspection, and (if accepted) get to buy the house regardless of what you found.
The more thorough the question, the more thorough the answer.
Please fill out your profile with as much info as you're comfortable with.
Thanks.
I was just wanting to stucture the offer as a three choice offer and thought that if I leave an out, I would be secure. I also fealt that at 50% equity someone on my buyers list might jump at it. However I was concerned that they may not and I would be stuck.
Also, another question.
I have always gave an earnest money check when making an offer, however how does using a Promisary note with an offer work?
Brian
We purchase and resell Homes. We also buy mortgage notes. We also take some debt takeovers.
Brian,
Banks are not going to accept promissary notes. You can definately do that though when you find an unlisted property. When you bid on REO's give your agent a copy of an EM check which he can use for multiple offers. I don't even date mine so my agent can fill it in as needed. He just attaches a copy of the copy!
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
Banks are not going to accept promissary notes. You can definately do that though when you find an unlisted property. When you bid on REO's give your agent a copy of an EM check which he can use for multiple offers. I don't even date mine so my agent can fill it in as needed. He just attaches a copy of the copy!
I did not mean to imply that I would use a note with a Bank, I was then refering to all other offers.
Thank You and lets stay intouch, It is always great to network.
From the St. Louis and Southern Illinois area, Thank You very Much!!!
Brian
We purchase and resell Homes. We also buy mortgage notes. We also take some debt takeovers.
mainly the 50% proposal. The others seem more realistic.
Better to go with an offer(s) that have the best chance to get approved than one you're throwing at the wall to see if it sticks.
And like Gena said, don't make offers for cash when you dont have any