Approval Letters

My real estate agent is telling me that no one will accept an offer without an pre-approval letter.

Does it work differently when making offers on foreclosures and HUD homes?

Regards,

Ben

I had a email offer accepted and they didn't ask for an approval letter.Even when I filled out the purchase agreement, I didn't give one but someone came in and offered 60k higher than I offered and I lost the deal.
If you need an approval letter www.coastalfunding.com has one for you.Read up on their site.

But my credit is crap and I have no money to put down. Can coastal funding still help?

Also, what listing site did you use to make that offer?

Coastal is used for a double closing and your credit doesn't matter if your wholesaling properties. Assuming that's what you plan on doing.
My advise is to go back through the forums and you will find everything you need to know.Read, Read, & Read again and listen to all the conference calls.That's what I did and I need to stop reading and get my butt moving on putting in offer's and taking action.I sent out like 20 email offer's myself and when I got one accepted, I called my Realtor to fill out the purchase agreement and now she's on board knowing I can get a low ball offer accepted.
So if you don't keep offer's going out, you won't get very far.I'm going on 5 month's and that's what it boils down to.Take action and do it.Follow Dean's new book step by step and just do it.

Hi Jason! When you submitted your offer on those properties, was it through an agent, the owner, or the bank? Thanks for the response in advance =)

I submitted email offer's myself and got one accepted through email.My Realtor and I went through the purchase agreement and she turned it into the listing agent.The bank held onto the formal offer for a couple of weeks to see if they would get a higher offer and they did.

Jason, you should have locked it up to prevent another buyer from taking from underneath you. If you and the seller's agent agreed in terms of the price and singed it the purchase agreement, then you should be entitled to the deal, and if someone else wants it, then you then can assign it to a new buyer and get pay for it. I think you got a bad end of the deal. That's why Dean emphasis that once you know it's a good deal, lock it up. Reading from your post, someone else has offered 60K more than what you agreed upon. Now, that sounds like a great deal if you could have locked it up. Good luck and move on to the next deal.

Lloyd

This was a short sale and the bank held onto it not agreeing to our terms yet.The only thing they agreed upon was the email offer.My Realtor and I kept trying to get answer's and push the listing agent to get a response from the bank.I believe the bank sat on my formal offer and got what they we're looking for (a higher offer).The good news is, I now know people are paying close to FMV and I think I could of assigned this property easily.

Jason,

Would you have done a double close or did you try a land trust with your offer so you could assign it? What king of clauses did you put in your contract? 30 day inspection clause? I'm just curious on what the banks are accepting.

Josh

I used and/or assigns and wanted to see what would happen.If they wouldn't accept that, I was going to plan on filling out a new purchase agreement and try the double close.
Clauses I used 30-60 day,Termite,lender approval,inspection approval ect.
I used like six clauses that we've learned from this site.

What I'm noticing about myself (going on 5 month's) and others is, we all can keep wondering what strategy to use and keep asking questions, but it all comes down to just do what we're told and if that don't work, try something else, and if that don't work, try some thing else.Just keep trying different way's and make something happen and learn on the way. but it has to be with action and I feel I'm finally realizing that.I get caught up on this website reading and reading when I should be looking up properties to get offer's out every week.

I got a formula of words from an Investor who teaches 12 students at a time.

1) you need a crystal clear vision of what you want.Faith/belief.
2) you have to have a burning desire/passion
3) you have to take consistant action, never ending action,ACTION UNTIL

He say's if you don't use all three steps, it won't happen.
I posted this saying right in front of my computer to keep reminding me.

Jason, you spoke like a true philosopher. No one can disagree with what you said. We speak of our credit and other things. So we have some credit problems, that's not really the problem. The problem is what have we decided to do about it. The first step has already been addressed, we have admitted to it. Now we have to find ways of fixing the problem. Business can be transacted without good credit, however, things move smoother when you have a great credit score. Like you Jason, I am also guilty of spending a considerable amount of time here and not enough into investing in the ACTION potential you spoke about. I have cut down on time here and doing some research on finding an agent and house hunting at the same time. Thanks Jason for pushing. Good Luck and God Bless

Sandra

Hi Everyone,

I just got the Dean's book and I am currently reading it. I do have about 60k in cash I want to invest in RE. I was thinking of finding a rental property in that price range and paying cash for it, with hope of refinancing after a few months (6) to pull some of my money out. However, my credit is not that good , any suggestions on how to invest this money in RE. Should I split the money in multiple ways and do muliple down payments on maybe say 3-4 properties. Any suggestions is welcomed. Thanks

Houbizman

Hi Everyone,

I just got the Dean's book and I am currently reading it. I do have about 60k in cash I want to invest in RE. I was thinking of finding a rental property in that price range and paying cash for it, with hope of refinancing after a few months (6) to pull some of my money out. However, my credit is not that good , any suggestions on how to invest this money in RE. Should I split the money in multiple ways and do muliple down payments on maybe say 3-4 properties. Any suggestions is welcomed. Thanks

Houbizman

Hi Everyone,

I just got the Dean's book and I am currently reading it. I do have about 60k in cash I want to invest in RE. I was thinking of finding a rental property in that price range and paying cash for it, with hope of refinancing after a few months (6) to pull some of my money out. However, my credit is not that good , any suggestions on how to invest this money in RE. Should I split the money in multiple ways and do muliple down payments on maybe say 3-4 properties. Any suggestions is welcomed. Thanks

Houbizman

This is my thought on your question..and just a thought. I would start with a list of foreclosures in a area that you know pretty well. Go through your list and find ones that interest you.Do your homework (ie recently sold homes, tax records etc). That should give you an idea of what the FMV is on that home. Then I would pick the top two..Make an offer (on one) at around 60 to 70% of the FMV that you have figured. But keep in mind the cost for rehab too. If offer was expected GREAT, if not on to number two.The reasons i'm saying one is because you would be able to focus on it better. I don't know your experience on real estate investing, but i am new so until i purchased a few or flipped or whatever "I" would need just to focus one.. But that is me and not you..As far as dropping your 60k all on one or mulitple, that is totally your call.I would personally try to purchase with one of Dean's no money down strategies. That way when the gran pappy of deals came into view you have the cash as a resource and possibly another 5 10 thousand to add with it. hope this helps you and God Bless

William