Contracts and Offers

If you're using an LLC to purchase a property, Double-close, assign, or whatever strategy - do you have to use your name or can you put the LLC's name?

Hi guys, I'm rereading 30 days to real estate cash for the last time before I take some action, and I'm trying to create a cheat sheet.

On page 83 and 84 in 30 Days to Real Estate Cash, it talks about the difference between Buy/Fix/Flip investors and Rental Investors. For Rental Investors, it says that the typical 6% RE commissions and holding and closing costs on the back end wouldn't be applicable, which makes sense, because they're not selling it and paying the additional 3%.

Well, I was set to purchase a house in North Philly on 6/30/14 for $11K. I emailed the seller yesterday to inform him that one of my partners will be scheduling a walk-through with him this coming Monday, the 23rd. The seller replies to my email today and states that he was under the impression that there had been a lack of interest on my behalf, even though we had a signed agreement and I already ordered title work, by the way. Due to his "assumption", he tells me that he sold his property yesterday. Such a wonderful way to start off my weekend, lol. There are plenty of solid deals out there, so I will not fret over this one.

I am a buyer who loves full service wholesalers. But the one "contract" that seems to get ignored is the Scope of Work / Contractor Agreement.

I just had a deal with a DGer that fell through...
First, the rehab number on their site turned out to be $6k understated ($19.5k to $25.5k)
Second, when I asked for detailed explanation of quotes I was told "everything is understood under certain categories in the quote" WARNING SIGN! If they don't have a detailed quote from their contractor, run.

Looking for advice on this subject: Hud Homes.

I put in several offers on Hud homes and they are countering me.

When you put an offer on a Hud home you put in your offer and then there is a NET TO HUD!

So, when they counter is is NET TO HUD?

Thanks,
Jay c

I need help with this one. Situation; seller is downsizing closer to wife's work. Not ready to be dis-placed before neccessary. Need money from sale to finance new home.

Question: What instrument(s) would I use as they want to rent before new home is ready. House is free and clear.

My solutiion is to L/O back to sellers. I need your thoughts.

Rick.

anybody have a simple, subject to contract i can look at? thanx.

I'm trying to put an offer together right now and I'm using a formula dean mentioned in one of his videos which is:
ARV x 0.85
-Holding Costs
Taxes
Insurance
Maintenance
Money
-Rehab
-Profit
------------------------
= Max offer
x 0.85
------------------------
= First Offer

How do you calculate Insurance and Maintenance? Is there a good rule of thumb I could use?
And how much of a profit do you usually calculate? I was using 20% of ARV. Is that to much?

It is not uncommon for me to receive a weekly email from a real estate investor vexed with the problem of transferring encumbered real estate into a LLC. Many of these troubled souls have sought providence from their local attorney, CPA, or banker only to find their hopes of protection doused like a spark without the tinder to give it life.

The problem for investors is in not knowing that information can be pretty thin stuff unless mixed with experience. A JD, ESQ., CPA, or other professional designation following a surname does not necessarily translate into omnipotence. For those wayward investors adrift in their concern for the unknown and known liabilities associated with investing, staying afloat begins with the use of a land trust.

Exactly what is a land trust?

My favorite contingency clause is:

Buyer to have 10 days from offer acceptance to perform due diligence before earnest money is considered non-refundable and is releasable to the Buyer at any time prior to that date.

This completely protects you from loosing your earnest money and the seller attempting to make it difficult for it to be released for any reason.

Plus it helps me sleep well at night with multiple offers under contract at one time.

Cheers,

Dave