Contracts and Offers

Here are the contract contingencies I use:

Contingencies:

1. Buyer to have 5 days from bank acceptance to deposit earnest money in escrow.
2. Buyer to have 10 days from bank acceptance to perform due-diligence before earnest money becomes non-refundable.
3. Buyer to have 20 days from bank acceptance to close.

If you get countered on the earnest money going hard extension:

1. Seller to have the right to continue to market the property and accept any offer in first position until Buyer allows their earnest money to become non-refundable.

Calculating Offer Price
Based on property with: ARV = $200,000, Repairs = $10,000, Listed Price = $190,000
Scenario#1 - Buyer says they want 30% equity after Rehab expenses
After Repair Value $200,000
Required Investor Profit = -(30% ARV) -($60,000)
Rehab -($10,000)
Your Profits -($10,000)
Max offer price if not REO or Short Sale $120,000
If REO or Short sale = -(.03 *120,000) for transactional funding and AB closing costs -($3,600)
Wiggle Room -($1,400)
Max offer price if REO of Short Sale $115,000

Scenario#2 - Buyer says they want to make $25,000
After Repair Value $200,000
Required Investor Profit = $25,000 -($25,000)
6% of ARV for Listing commissions -($12,000)

I am a fairly new Realtor in Pittsburgh, PA.. I am working with some investors who want to assign their contracts. They are putting many offers in on houses, but are getting turned down due to this. Assignments are a very new thing to me and I cannot get much help from my broker either as this practice is pretty rare and finding even a closing company that will take on a "double closing" is very hard. on the PA sales agreement, we need to have sellers consent to assignment, so buyer put wording as such "offer contingent upon buyers ability to re-assign" Is there maybe a standard addendum or request for assignment letter to the sellers that I might be able to use on the offer? Any help would be greatly appreciated.

Hi everyone, haven't posted for awhile but to date I've done 2 deals netting 46K and we are closing on a multi unit (finally) on friday that will bring me another 15K.

The multi unit required a lot of negotiating. First I had it under contract for cash, at what I thought was a great price. Turned out the only way I could get it to sell was for the seller to carry 70%.

I heard someone say "make 3 offers on every house/property and it never occurs to the seller to not take one."

So my question is....

Does anyone do this? Offer a...

-cash price
-a little cash and terms
-no cash and terms

do tell

Can anybody tell me why investors are so afraid to fill out a Non-Disclosure Form before I give out the address & info for super deals I come across (30% BFMV)? Even the ones I have met just never contact me again when I ask them to fill out one.
The HONOR SYSTEM has not worked for me.

Is Contract Assigning Illegal In Any State?

Is Contract Assigning Illegal In Any State?

i recently called an agent in wisconsin and they told me it was illegal to assign contracts in wisconsin? Is this true? What do the laws stipulate here about assigning contracts?

Hey Everyone! We have a contract signed and it's in attorney review. We have a buyer but, he needs to get a mortgage. He called us yesterday and told us he is having trouble getting the mortgage because the company wants him to have a tenant in the house before they will give him a mortgage. So, he asked us if the seller would hold the note. We asked her that a while ago because we wanted this house for ourselves and she said no.

My issue is that I think this buyer should sign the assignment contract with us and then he can deal directly with the seller and work out his issues. Why should we be in the middle of that? We have a $1000 earnest money out on this and I don't want to lose it because he is screwing around. Am I wrong on this?

So I have a potential deal that I ran by my mentor and he is all for it. Though the seller has already done an assignment on this and wants it closed.

My mentor suggested a double closing. If I do a double closing, what contract would I need to fill out with the seller?

Here's the numbers here

Property in Philadelphia, Pennsylvania
Asking: $35,000
ARV: $98,000

Repairs: 22,500

Will rent for $900/month

3 beds, 1 Bath

If someone can advise me on what I need to do as far as filling out a contract and doing a double closing...please let me know!

Thanks