OfflineHi Everyone on the DG site. I have been standing in the shadows watching for a long time. I have read both of Deans recent books along with a lot of rich dad stuff. DG has finally given me the guts to go for it.
So here is my first deal. I found a house for 460k It's value on trueview is around 560k . Its a FSBO. His mother owned the house and passed away a few months ago. It's been on the market 2 months. It has a new kitchen. It is 3 bd split with 1 bath . In a great area.
I know 1 investor that may buy it . I know I need to build my list.
My question is how do I structure this. Do I ask for a % or tell the investor 500k and take a 40k profit?
Please help!
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Congrats on getting in the game and deciding to change your life. You can do an assignment of contract. I would build a bigger buyers list, but if you are very confident you have someone that will buy this house, then lock up the house on paper from the owner. You need to put an escape clause in it. After this, ask your buyer if they want the property, if they do then assign it to them for a fee, if you can get as much as 40k then go for it!
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
Hi Jeremy,
Thanks for the comment . When I assign though should I say the price is 460k with my ?% fee or 500k and just take the difference?
Be sure you get good comps as well, don't rely only on trueview. Find out what like properties have SOLD for in the same area. If you think you can get $40000 go for it, just don't get too greedy & he'll come back to you for more deals!
Just my 2 cents...good luck!
Dawn
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
What are some best practices for getting comps ?
A realtor will get you the comps if you are working with one. these are for houses sold in the last 6 months only.
On your sale price, I agree, don't get to greedy, not that greed is bad. if this investor is savvy street smart, he will be doing the same thing you are, GETTING COMPS. Better to start with a little profit and have this guy come back to you for more deals. If you blow him away, you could nix it for more deals down the road. just my input.....Jan