NEW TO THE GAME NEED HELP!

Hi Charlie! Happy Birthday.
I am very very new too so not sure if I can help much. But just from reading a bit I would think you would want to get all the information about that property before you do any kind of contract or offer.

I think you would want to know if it is going to be a property that you are going to profit from if you buy it.
You saw the outside of the house and from what you said you felt it did not look like it was worth what the seller is asking. Can you ask to see the inside? It might be a gem inside and just need to spruced up on the outside.
I also think you would want to know if it is in a good location ("location, location, location ")
Then I think you would want to find out the Fair Market Value- FMV. Look at comps- what comparable houses in that neighborhood are selling for.
What sticks out in my mind from reading is "do your homework" on a property before making any deals.
Try to find some more info here on this site on similar subjects. I just started by clicking on the links on the left of this page and found a lot of valuable info, guest blogs, forums etc.
Well, I hope I have helped a little. I am too new to give advise but being scared myself I sure would not want to draw up any contact util I knew I was going to make a profit from my investment.

Here is a post I read on this site. I don't know if it will help answer any of your questions but if not, you will still learn some valuable info as a newbee like me
"How to Accurately Estimate a Property's Current Market Value" by Anita
To find it, on the links, top left on this site, click on "Real Estate forums" then click on " Title Searching and Other Research" scroll down and it is the second one after the "sticky's"

I wish you luck and hope I helped a bit.
Regina

Happy Birthday CHARLIE

I am also very new to the game and get your scared feelings completely, actually I am terrified! Everyone is right what stops us is us.

So here is an idea. Contact a Realtor to show you comps with the same criteria to get the idea, inform them you are an investor and looking for properties. Tell them that you want to find deals and find out their rate. Inform them that you also come across properties yourself and will pay less maybe 1% instead of their usual rate if they help you will the paperwork. This way you know that the forms are legal and they do this daily. A good Realtor will teach you. Sounds like the guy isn't going anywhere so you have time. Consider the process as a continuous celebration of your birth! Good luck.

Theresa

Hi Charlie HAPPY BIRTHDAY; and many more;

Yes I joined the Success team in January; I am very scared and new too...
I just found a Realtor that will work close with me and I also have a buyer on hand; I plan on putting my flyers and business cards and Bandit signs up soon too... I am reading Dean's new book out as well...
Remember we are all here learning from each other; just be careful if the deal don't sound to great then walk away;
REMEMBER THE NUMBERS GAME;
Know when to Hold
Know when to Fold &
Know when to run;
if the numbers don't add up or the property is not up to part
then walk you will thank yourself in the end;

Tee; Scott

Thank you all for the inspiration. I just spoke with the guy and he is going to show me the house tomorrow. I will continue to post my progress here. Thanks for the words of wisdom

I have seen on this forum,REA do have the proper paper work...Rememeber
you are new! You are saying everything correct...You know things about the
property, That you are interested in! Make your bid (hit any magic button
you can, to get your hands on it)...And after that...Go find the next bid!
By the way Happy B-DAY!!!

Randy
P.S. Lease/Option...NO money "DOWN"...(Please)!!!

Happy Belated Birthday Charlie,

I am EXTREMELY new as well, and have not yet done a deal. I have just finished reading the first book. But here are my thoughts.

I agree with TMO28, you need to get the comps from a Realtor. Don't forget that the people you will be working with are just regular people like us. Don't be afraid to just engage them in simple, easy conversation.

There is nothing wrong with asking them;
1. "I was wondering how you came to that amount?" (the value of the house)
2. "When was the last time you had it appraised"
3. "I see you have been trying to sell this for a while. What are your reasons for wanting to sell this property?" (Find out his motivation, hot buttons)

Also, don't forget, DON"T FALL IN LOVE with this one property. There will be MANY out there for you. (at least that is what I am being told/taught )

Remember, one of the first rules, find MOTIVATED sellers! You don't want to spend too much time trying to CONVINCE him his price is too high and needs to come down.

Due your due diligence. Get inside look at the property. From the outside in, find ALL things that would need to be "repaired" in order to make it more valuable, either for yourself, or your end buyer. Create this list and all costs associated with that.

I would, (and remember I have NO experience here), take the CURRENT FMV of the houses in that area, (using comps) and DEDUCT the "fix up costs, DEDUCT YOUR desired PROFIT, and any other related COSTS, and THAT would be the price I would offer. If the numbers don't work..... walk away. At least you "made a move" that many of us have yet to do! CONGRATS on that!!

I hope this helps. DRP

I'm curious of industry standards in regards to real estate agents percentages and /or commissions in an investor/agent relationship. I'm in the Pheonix east valley area