OfflineHello DG family,
I have found an 8 unit apartment building, the owner is willing to sell it for $300,000 and will contribute to the closing. I spoke to the bank and they said they are willing to do something creative if the numbers work. This will be my first deal with out a real estate agent. What should i do? what process should i take with this deal?
which contract should i print to write the offer and signed it? should i take the contract to the bank or the real estate lawyer first and then the bank? also what should i include in the contract, since is a new aquisition.?
Thanks for your time, please help, i dont want this great deal to go away from my hands.
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Are you going to flip to a buyer or keep it for residual income monthly? If flipping , make sure you have a buyer lined up. If keeping, find out how much rent you can receive each month so you can pay the mortgage.
Get your comps! then if it looks good then try to get it under contract. If they won't give you the deed then have them sign a memorandum agreement because it will cloud the contract. You can use various strategies for an exit plan. please pm me for details, I'll do the same to help you out.
-Arnold
My goal is to pick myself up and get on solid ground so that I can overcome any obstacle or FEAR! And that I can Help someone else to do the same http://www.realdealcommunity.com/members/profile/10706
The owner wants to cash out due to a divorce, the rents are $5250 and the properties in the area, same buildings are going for 5 to 600,000. I'm planning to keep it for the cashflow and later on use it's equity to accumulate more properties.
If you have worked with the bank....make sure you understand what they are willing to do in order to prevent wasting your time or the owners time in doing your due diligence.
Ensure that you get all the expenses and calculate the NOI of the property;
Gross Rent - Expenses = NOI (Net Operating Income)
The NOI has to take care of all the debt costs for the property.
Once you have this info....then construct a P&S agreement and have lawyer review. (Get one from Real Estate Agent or online)
Just make sure that you have enough funds to cover whatever the bank will require for you to acquire the property.
Get the offer into the sellers hands and then start the inspections and get some historical figures from tax returns, remember this is an investment property, so comps is one way to value, but more likely it will be evaluated through the income approach.
Good luck.
Luck is when Preparation crosses paths with Opportunity!