Contracts and Offers

Thought I would share this about 1 of my Latest FSBO Deals I was working on:
Had a Couple call from my Moving Bandit sign
"We Buy Houses" & My Number,We Put on the Rear window of my Car.Which is generating some good leads already:)
I met them at the house, talked with them about their situation & of coarse did my inspection.House needs about $15-20k rehab ( Mold in sub space under house, Termites,Dry rotting etc.By the way her 3 other sisters who are the beneficiaries of the Trust assigned to the property/Trust want to just let the bank take it!
Their(Adopted) mom did a reverse mortg. on property for approx $200k,(ARV Approx $285k conservatively)& also Recently moved out 2-3 months ago & was now living in a care facility ( Shhh Bank does not know yet)

Keys to More Deals--Be a Great Communicator!

I have just finished another phone call where I struggled with every sentence to understand the party on the other end of the line. I must have asked them to repeat themselves 15 times during the conversation. The problem was partly a result of speech patterns and partly a result of substandard phone connection. So, of course, you know things like this are going to show up in my posts.

Let me ask you an important question. Do you think that you will have better results if you are a great communicator?

I'm beginning this posting string to discuss the importance of asset protection and the mechanisms to best protect your assets.
I frequently speak with people on our training line whose question is: "Do I really need to form an entity right away?" The answer to that is: "No, BUT. . ."
Let me cite some reasons why you want to form an entity right away:
1) You have worked hard to create the assets that you own. I promise you that they are already more exposed than you think they are, which creates a high potential risk of loss should someone decide to sue you. If you start promoting the fact that you are a real estate investor, as you should, people will automatically perceive you as a target for lawsuits. It's simply not good to raise high risk to even higher levels.

I cannot take credit for putting this together, but I didn't see it on here and thought it would be of benefit for any investor thinking about Seller Financing:

Dodd/Frank Act Summary for Real Estate Investors
Overview—(Note: The following information is a summary of the Dodd/Frank Act, (Reference: http://www.gpo.gov/fdsys/pkg/PLAW-111publ203/pdf/PLAW-111publ203.pdf ), a U.S. Regulation that is in initial implementation as of this writing. Note that there is no case law precedent to reference, so investors are encouraged to be cautious and thorough in dealing with the tenets of these regulations.

The "Non-Circumvention, Non-Disclosure, Non-Competition Agreement" Form
This form has been promoted to be used when bird-dogging properties to a seller as a way of securing their agreement not to circumvent you in buying the property.
There is a more universal usage of such a form. The version that I would recommend is a reciprocal version of the form, that equally protects both parties to the agreement.
In essence, what the agreement states is that each of the parties to the agreement may share valuable information with the other party, and that the receiving party may not use that information for profit or share with anyone else without either a written approval from or compensation to the providing party.

I get asked all the time about Earnest money when making offers on properties. It's a great question. How much do I pay? How much do I HAVE to put down? I was doing some research and found a great article that confirms what I do and teach. I hope that you learn a bit from this article like I did. Get out there and make offers, protect yourself, and get making money!
I hope you enjoy.

The Earnest Money Deposit: What You Should Know
By: Angela Colley
The earnest money deposit is an important part of the home buying process. It tells the seller you’re a committed buyer and it helps fund your down payment.

Here is a simple outline for those that are trying to get in their mind the assignment process.

1. Have a good buyer's list.
2. Find a good agent or agents.
3. Find properties that have repair needs, a motivated seller and are vacant.
4. Make your offers in the name of your LLC and/or Assigns.
5. Get a house under contract.
6. Contact your buyers with the info on the house.
7. Schedule your buyers to see the properties during the due diligence
period.
8. Sign an assignment contract with a buyer.
9. Get all paperwork to the title company.
10. Pick up your check.

This list is a general outline. There are other details within the steps. However, this should help give you a better understanding.

I have a property under contract right now. The closing date was 60 days from the date we signed the contract. The house was occupied by tenants when we signed the purchase agreement. The seller agreed that he would evict the tenants within a few weeks. It has been close to 30 days now and the seller and I have agreed to sign an addendum changing the date of closing to 30 days past the date the tenants vacate.

What's the best way to word the addendum?

Hey guys so I have a quick question, was dreaming about this stuff last night and wanted it to be clear from me before I start placing all my offers and doing the formula.

So in 30 days to cash program Matt talks about his formula which is

.85x (Includes all fees)
-$20,000 (profit)
- $xx (My assignment fee)
- $10,000 (rehab costs)

Where I get uncomfortable is let's say I place 5 offers a day, do I need to go out with my agent and inspect all these properties before doing this formula? What if rehab costs would be more, or even lower than the $10,000? Seems like a lot of work for my agent to have to meet me at all these places to make offers which only 4/100 would probably get accepted.

So I'm putting out bandit signs like a mad man, got a property accepted at a good offer from a seller. But his attorney reviewed the contract and said he wants $1,700.00 EMD and not $10.00 lol
The seller asked, "how do you expect to pay $100,500 cash for a property by Christmas if you are not able to pay $1,700 now?"

He only asked this in an email cause I said I wanted 7days to inspect the property first to get another buyers EMD.

Any suggestions on what to say?