OfflineGuys, I was afraid, I was scared to death when talking to agents, title company, buyers, etc. It was out of my comfort zone when I first talked and got denied by a lender. I thought it was the end of everything. Thanks to Lloyd's, and other DG family members' inspiration and encouragement, I just kept doing and learning from mistakes. I spent a ton of time looking for deals, learning how I could structure a deal and what works and what doesn't work in my area. Not to mention a ton of money (for me it's a lot as a student) for phone (my bills got tripled last 3 months), letters, stamps, fuel, etc. A lot! That I thought of giving up so many times. But this is what I'm interested in since I've chosen it my major at college long ago and I always wanted to open a company working on things that I'm passionate about. So I didn't give up. Right now, still not sure whether it works out but if it does, it would mean so much more to me than the amount of money. I ran an ad and I got a call from a man looking for house that could be seller-financed - 2 bed/1.5 bath for less than $150K and would like to close fast. Also, he is willing to put down 5% to 10%. I did some search in my area and went around and found a good place for him. The asking price is $129,900 and seller accepts seller-financing. It has 3 bed/2 bath and looks great! I was thinking about having him pay the full price with down payment 6% and since the seller gets full price and get a motivated buyer fast, he would need to give me 1% back but still count 6% toward principal for the buyer. I would like to hear from you guys what you think. Am I doing ok? The buyer also asked me if I do legal paperwork as well. I told him that the closing title company usually has an attorney to look at the paperwork for him. I will also send him a copy of a Purchase Agreement that agents usually use to have an idea of a contract that he should write to the seller. The seller then just needs to sign if he agrees. DG Family, please please let me know if I'm on the right track, and whether or not there is any legal problem that I might run into? Thank you so much...
Good job on your persistence! Here is where you need to be careful... since many states have laws that are designed to give certain groups and lobbies a monopoly over the average private citizen, you have to make sure you are not acting in the capacity of a realtor if your state prohibits it without being an actual realtor (some may not, but I know some do).
This means merely being an agent for selling the house is being a realtor. However, locking up the property into a purchase contract is what we do. We become the owners of a contract on paper to buy the house at a specific price, and we can option our interest in the property to someone else at a premium if we so choose.
So you need to get everything in alignment on both sides. First step is locking up the property with all the terms, price, financing amounts and rates, everything - including the ability to assign.
Since it is owner financed it makes it a little different than your typical assignment, but I'm sure someone has done this here and will chime in.
Good luck!
Congratulations on your first potential deal, this must be a very exciting time for you. DG Admin already gave you some great advice above. Keep up the good work and keep us updated on your progress. Good luck on all your future deals! Believe and Achieve!
- Joe
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I am happy to hear you are going for it. I haven't heard from you in a while and thought to check on you here. I hope it works for you if it does I would like to celebrate with you for you. I am still working at it all myself and wait to see if this strategy will work here in utah. All my best. lets do lunch again one day. I will come to Provo.
I am watching you grow.
The greatest three letters in the English alphabet are N-O-W. There is no time like the present. Begin now!" - Sir Walter Scott
Love and Blessings to all.
Sherri
Thank you very much, dgadmin - Joe - and grams_gold (I just called you by nickname for fun
). I will keep in mind all of your advice and keep you guys posted. At least I'm trying and doing what I learn so everything would be just meaningful no matter what!
I'm so glad you kept going even when it really seemed difficult. When you had to spend money, put another tank of gas in your car and even when you were denied a loan, you KEPT GOING. Great job and go get this deal locked up.