Contracts and Offers

This is a 2 house Deal I stumbled onto tonight. Am I being fair in my offer or is it too one sided?
-------Exeter Ave----- Fairfax Ave
Asking Price-----$20,500.00----- $46,000.00

FMV----- $25,000.00----- $48,000.00

Less 25%----- $18,750.00-----$36,000.00

10% Down----- $1,875.00----- $3,600.00

Amount Financed-----$16,875.00----- $32,400.00

Int Rate--------6%--------6%

Term-----180-----180

Payment P & I-----$142.40----- $273.41

Total Interest Paid-----$8,757.15-----$16,813.73

Total Earned-----$27,507.15-----$52,813.73

Current Rent-----$525-----$750

I may be paying too much ($17,500) and I need to bounce this deal off somebody ....a fixer upper 3 bedroom house county assessor says worth $25 to 35,000. Needs a lil work because 1 fire in a bedroom. I found a good carpenter. I need to put in a furnace and I wanna buy and hold. Seller agreed to a 3 year land contract with a baloon. $500 down then $100 per month ...deal or no deal HELP !

does any one know a good attorney in the San fernado valley Ca that does Assigment of contracts?

Since there are always a lot of new people on this website, one of the first rules when selling real estate is that it HAS to be in writing. Oral contracts or modifications are NOT binding. The New York Court issues a nice finding as it is being overwhelmed with people who are saying that they entered into a verbal adjustment to a contract. Read it here:

http://www.jdsupra.com/legalnews/new-york-appellate-court-enforces-no-or...

How is everybody handling their contract assignment fees?

Do you get paid at the time you assign the contract?

or

Do you get paid when the buyer closes?

Do you collect your check upfront or does the title company hold your assignment fee?

What's a good offer formula, or is this one still a good choice to go with:
- Profit of at least 10%
- Fix up costs
- Holding costs (value of the property x 1.2% x number of months I will hold the property to sell or rent)
- Closing costs (3% of the value)
- Realtor Fee (6% of the value)

Thanks!

Has anyone ever run into a legal issue when it comes to bird dogging? i was thinking about doing an LLC to get started in the biz to protect me personally.

If you are wholesaling it is vitally important to have an inspection contingency in your contract to use as an exit mechanism in case you cannot find any investors to take your wholesale deal.

The inspection contingency is the exit mechanism that we prefer to use because it is the mechanism that is least likely to be objected to by Sellers. We want to limit ourselves to one contingency or exit mechanism in any contract in order to keep our offers simple and attractive to Sellers. Sellers who see an all cash offer with only an inspection contingency are more likely to seriously consider the offer versus an offer with financing and multiple other contingencies at a similar purchase price.

Hello, everybody...
Working on my first deal and have an offer going in on a property with an out of state owner. I assume I can send her my contract to sign and fed ex back to me... (any thoughts / guidance?)

Then I'll need to either assign the contract or do a double close. Does she have to fly to Texas to be present or can she give her property manager power of attorney or something like that? Let me know...

Chip F

I have been watching a property for a long while
Synopsis: I've been seeking an investment to buy below market but I need to live in it for a while. This one has been inspected by previous parties who were going to buy but backed out. I know it needs a septic system upgrade and all the inspections came back fine. Started out at 380 then dropped to 350. Now at 335 but I'm going to offer . It's empty and the owners are carrying a mortgage for over six months now having already relocated and are ready to "move on"