Buying Foreclosures, REOs. Short Sales, FSBO, MLS and More

I have been getting calls concerning Option Contracts so I thought I would address this issue for some of you in the DG world.

An option contract is defined as "a promise which meets the requirements for the formation of a contract and limits the promisor's power to revoke an offer." Restatement (Second) of Contracts § 25 (1981).

An option contract is a type of contract that protects an offeree from an offeror's ability to revoke the contract.

Consideration for the option contract is still required as it is still a form of contract. Typically, an offeree can provide consideration for the option contract by paying money for the contract or by providing value in some other form such as by rendering other performance or forbearance.

I found a home that is in foreclosure but its owned by
Freddie Mac....should I try to get them to lower the asking price? what should I do?

Good Afternoon:

I just had a real estate agent tell me that wholesaling properties is flopping.

I thought flopping was when a non-arm's length buyer and seller collaborate on a short sale to profit from the bank's decrease in principal?

Are we flopping real estate -- she said the IRS was coming down on this practice...

Thanks!
Sean

So Locking up a deal on contract was the Easy Part, it's the Title company that is taking way too long to
do a Title Search. So I din't know that 5days would turn into 5 wks. Apparently the seller didnt record the title when he purchased and paid off his loan to the original owner so it posed for problems, of which I am learning all the lingo to boot! Not sure if it "conveys", my broker, "yes it does convey", Title Co, we need to order a survey of property and "metes and bounds".....and the terminology goes on and on.

Yet it posses a great deal since it is a C-4 zoning and I already have an interested buyer, hope he holds out for the long haul! If he does we will sell at 75k
I have it locked at 53K and my broker and I share the profit (he brought the buyer)

I got an email response to one of my absentee-owner letters. The guys starts out asking 100K for his 3/2, which is about 5K over FMV. He has a renter in place paying $1100 a month, and he owns it free and clear, according to public records. He says he's firm on his price.

I email him back explaining that I'm a wholesaler looking for bargain properties, and that I can't pay full price and remain in business. I ask him, "Since you obviously do not need to sell your house, would you perhaps be interested in buying another income producing property in this same area? " I really thought that would be the end of it.

How do you get on a list from banks that will sell to you before they list with a realtor?
How do you find a list of toxic banks that are carrying to much debt?

ok so the first wholesale deal i did last month was for a landlord and it was a try out. he said if you sell this one ill give you everything i have to sell. so now I have $600k of wholesale inventory. it will only be sold as a bulk deal. does anyone know what bulk buyers are looking for any info will be helpful as i work this load of inventory. is there a certain ROI they expect every year?
the seller is stuck at his price and says if they don't sell oh well but i think they are sell able. anyone who has delt with bulk maybe you could answer a couple questions

How do you go about showing a property to potential buyers once you have a contract accepted by the seller?

It seems a little awkward to me to ask the seller to make the property available once they believe they have sold the property.

Any hints / suggestions?

Thanks!

Hi DG Fam

Just want to keep u posted on 2012 progres, So far im averaging 1 - 2 deals a month. All of them have been through mls reo. I just got one today that the bank is giving me a 30 day inspection period. Now that is what I call a motivated seller

Never give up. Keep pushing forward, I promise you that it gets so easy after a while

Just closed on a L/O and the seller gave us a check for $24,000 to take over the property. We are L/Oing it for 10 years and when we exercise our option we will pay whatever is owed on the house only.

We are planning to option it with a $4K option fee and should cash flow $175/mo.

Out of the $24,000 we will paint, put in new carpet, landscape and do a few repairs that should all come to about $5,000.

This is really FUN!!!

Karen