Contracts and Offers

Every day I have the great opportunity to deal with many of Dean's students. It is a priviledge to get to know many of you and your stories. Many of you have overcome great obstacles on your road to success.

I would like to talk about something that keeps some from tasting the success they would like. Just today I had a guy tell me how none of his offers were being accepted. He said he wanted to do well, but that he was not getting the results he wanted. I asked him how many offers he made this month and he said "two".

After a pause I asked him if he realized that two would not get him where he wanted to be. He said that he did realize it.

Hello,
I recently did a deal where I had no earnest money. I went to someone and told him I would pay him back half the profits. I do not remember the exact words I used, but I know what my intent was 50% of the Net profits.

I intended to wholesale the deal for a substantial amount more than the earnest money expecting to give my partner a nice return on his investment. But I told him upfront he may lose his money if the deal couldn't be wholesaled.

I did end up wholesaling it for a nice amount. I paid back half of the profit I promised giving a return on investment of over 300%. He looked at me as if I'd given the wrong amount.

I have a friend in Orlando Florida has some land for sale it's 2 & a 1/2 lots in port Charlotte ,he wants me to get it sold for him ,is there anyone who would like to partner up with me down there and shop this opportunity to their buyers list hit me up let know......

Here is an example of how to calculate an offer for a buy, fix and hold investor.

The first thing we need to calculate an investment property is the Net Operating Income (NOI). The NOI is determined by taking the gross rental income and subtracting all of the expenses from it.

Here is a way to calculate the NOI. Please note that different investors subtract different things.

Gross rent

- management (10%)
- maintenance (5%, if applicable)
- taxes (use actual numbers)
- insurance (varies, use actual numbers)
- utilities (can be from 0-something, if applicable)
- vacancy rate (varies from 0-5%, if applicable)

= NOI

Every property I've been coming across lately has been owned by an LLC (bulk investor). 5-8 other nice homes I would stumble across would be owned by this same LLC investor. Simply put, the best properties available to me are owned by bulk buyers/sellers. There are alot of forums out there on negotiating price BUT they only appeal to FSBO's. There's is no motivation from an investor other than to make a profit. Wouldn't it be a waste of time trying to find their motivation? How would I negotiate a good offer with these guys?

http://www.biggerpockets.com/renewsblog/2013/03/20/amortization-schedule...

Can someone help answer this for me??? I am purchasing a house under my LLC's name and this is what I guess Freddie Mac is asking for

"The title agent said if you don't have an operating agreement you can supply this:

If you do not have an operating agreement the buyer will need to state that in an email and provide a letter of authorization for the person who signed the contract package. This letter will need to be specific to this property address and signed by all members of the LLC."

I have never seen or ever had to do this before. I also thought that the members of an LLC do not have to be disclosed, but yet they are requiring all signatures.??

Any thoughts?

Thank you. :0)
Tonia

In a New York Times article this week, it was suggested that borrowers of modest means should be considering commuting costs in determining if they can afford to buy a home. This is because lenders do not take commuting costs into account, and some borrowers are finding out too late that their budgets are strained in getting to work and back.

A study published in October by the Center for Housing Policy and the Center for Neighborhood Technology looked at transportation and housing costs in the 25 largest metropolitan areas. The study found that transportation costs rose faster than income in every one of these areas over the last decade. The study reported that transportation consumes 30% of a moderate earner’s income, and added to housing costs, the total is around 72%.

Home Sales Rise to 2nd Highest Pace in 3 Years

In January, the sales of previously occupied homes rose to the second-highest level in three years. The National Association of Realtors reported that sales rose 0.4 percent in January to a seasonally adjusted annual rate of 4.92 million.

Active Adult Communities for Boomers are Growing

Over-55 communities are changing with the new influx of baby boomers. When these communities first came on the scene, they provided more sedentary activities, such as craft studios. However, today’s new active adult community resident is more tech savvy, and is still working or looking for work. These residents also want to be active in their communities and do volunteer work.

Home Price Activity Normalizing

I found another wholesaler who has a property under contract with alot of equity in it and wants to flip (not assign) it to a buyer (double close). I have a buyer looking for this exact kind of property. Can I enter into a contract with the wholsaler to buy the property that he has under contract with the seller, and assign my contract to another investor? So essentially there are two middle-men between the seller and end-buyer.

Or perhaps I should steer clear of anything too complicated at this point since I'm just starting out and don't yet have an attorney on my team, only two people on a buyers list, and have never done a deal?