Contracts and Offers

How do you get a real estimate on repairs when the house has no power, water, or heat on? Is it just looked at for any broken plumbing or displaced wiring? Or do you just take the seller's word for it?

Shirley

Okay, so I wrote up a contract and now I have questions about it...whether I left something out or put something in I shouldn't have..

1. The seller has POA for the actual owner. He (the person who has POA) just signed his name on the contract. Should he have put his name comma POA for "owner's name"?

2. I did not give the seller a copy of the contract yet. Should I have? If I am going to assign it, why would I give him a copy if so?

3. I don't think I actually used an escape clause unless the earnest money clause (earnest money due at buyers approval of inspection) is the escape clause for the contract. Is it?

Shirley

Okay, so I wrote up a contract and now I have questions about it...whether I left something out or put something in I shouldn't have..

1. The seller has POA for the actual owner. He (the person who has POA) just signed his name on the contract. Should he have put his name comma POA for "owner's name"?

2. I did not give the seller a copy of the contract yet. Should I have? If I am going to assign it, why would I give him a copy if so?

3. I don't think I actually used an escape clause unless the earnest money clause (earnest money due at buyers approval of inspection) is the escape clause for the contract. Is it?

Shirley

1. If a person is POA for the owner who is selling the home, does the person selling the home as POA sign his name comma POA? Or does he sign the owner's name and then his name acting as PoA? Or does it even matter?

2. Do I give the seller a copy of the contract (after he accepts my offer) that I am going to assign... or do I take it to an attorney first? This is confusing. I am going to assign, but who takes the contract to the atty?

This was done through an agent. As she was emailing me that my offer was accepted. I was emailing her that I wanted to withdrawal my offer (2nd offer)as I felt after walking it w/contractor with was too scary. So I'm reconsidering. I have a potential end buyer who says if the rehab #'s work, he can move it. So my issue is: I need the buyer to submit down $ and POF as requested to put in official offer. (LOI was accepted). I contacted that end buyer this morning, no response yet. I'm waiting for the rehab costs from contractor. I contact him as well this morning...no word yet. Here's how the #s work out:
Asking $33,000
ARV $51,000
Rehab guestimate $12-$18k
Sale price including my profit $27,125.

I found this REO property: SFR $59,000 3 Bed/2 bath, 1,277 sq. ft.
Potential equity: $54,134. Zestimate $73,300. bank is selling as-is. the property has an illegal patio either needs a permit or tear down. (of course there are some more work needed to be done too! I haven't seen the house sticking to the rule of not seeing the house until my offer is accepted)

I offered $28,500. my agent couldn't believe what she heard and asked me twice, uttered "I think that's toooo low of an offer". I told her to go ahead and send in the offer, we can always raise the price if the bank reject us. She agreed but hasn't got back to me today as she promised.

So I have two questions for my veterans:
Did I scare my agent away? or was my offer outrageous?
This is officially my first offer!

This is a brick 3/1 with a full basement and double garage. 2095 SF.. Asking price was $105K. I could tell from the outside that it needed lots of work but didn't think it needed as much as it did. The owner gave POA to his son. They are Chinese and Owner is in China. He had been renting it to his "help". He owned a restaurant and it closed so it's been empty for 7 months. It is in a great location and a nice neighborhood. After asking questions, I found out that he owes $75K on it but was told payments and taxes were current. The basement has been divided into 5 rooms and there is 1 bath in the basement. All floors in the basement are still just cement. All floors on main floor are carpeted and it needs all new carpet.

For those of you that have done this, what's involved?

How do you structure the assignment aspect of the deal? Do you just keep adding another assignment agreement for each assignor/assignee in the chain or are they all covered under one assignment agreement?

I have a fellow DG'er that is working on a deal in which he would bring in his seller to my buyer. We know he has to lock it up under contract under his name with his seller, but how do we all figure in the transaction as far as paperwork is involved?

Thanks!

Hey DG family!(: I had a quick question on subject to's. Well Ive bought yellow bandit signs and business cards flyers and started marketing. Now ive got sellers calling but some of these leads are people that are over their heads with their mortgage. So is there a way to help these people by getting a "qualified" tenant in there to pay their mortgage? Or rent to own? Is this what subject to deals are?

Some of these leads weve got are sellers that are not behind on payments but are barely making them. so they really want to sell but their house is barely worth what they owe.. so is there anything we can to make it a win win? Thanks for any advice.(:

Robert.

I don't think I've seen how this is handled.

They want to sell the house and then take the proceeds to purchase another one. Catch is that they want to live in the house until they get the money from the sell.
How does one handle this?
I know you can do a contingent on seller finding a house but isn't there anything more absolute or structured?

To me this seems counter-intuitive to closing in 30days with a cash buyer if we have to wait for them to move out.

Save the issue that I could possibly find them a house to move into for another thread.

TIA!