I need Help

Congrats on finding the property! In order to determine if it's a great deal, you will need to pull comparables on properties within 1 mile, that sold in the last 3 months to see what the property is worth. FMV vs short sale will tell you if it's worth pursuing. If you are wanting to Birddog the property, you can call other investors and ask if they would consider giving a finders fee if you bring them good deals. And yes, you can call from ads that are posted for motivated sellers. They are basically looking for good deals and you can point them out. Hope this helps.

SOTC,
You could act as a birddog. In other words refer the potential short sale to an investor. If the investor closes on the deal he would pay you a referral fee.

To birddog you should have a buyers pool. Call on some of those signs you see, introduce yourself and ask the investor if they would be interested in referrals. That will give you the opportunity to identify their investment criteria for future deals.

Dean also talks about assignment of contract in his latest book but most lenders frown upon assignments. The ability of the potential buyer to close on the deal (credit worthiness)is most important. In assignment of contract they are being asked to make a decision with that part of the equation being a questionmark.

Thanks to both of you guys. I proceeded with contacting the seller (agent) about my intentions and requested more info on a total of four properties. Once she responds, my next step is to compare her prices to the FMV prices in the area. Also I will contact as many buyers as a can to generate my buyers pool. All Im waiting for now is her response, while looking other places for other deals.

Good luck on this potential deal. Please return to the forum thread and upsate us as this potential deal may progress. Good luck with real estate investing. Believe and Achieve! - Joe

Just finished deans lastest book. and i have found a few properties. but i am apprehensive to make offers because i am a novice investor. i want to make sure my calculations are right. when calculating fmv, what if i cant find sales in a particular area for the last 3 months? what can i do?

Hi Epidemic2115,
Congratulations and welcome aboard! You can go as far back as six months for an appraisal. Much success.........Lubertha

Hey guys, I further researched the property and its priced at 34,900 buy the agent. I researched the FMV from about 6 different sites and got an estimate of about 110,000. I also looked at the sold prices of the homes near by and got a average of about 115,000.
My next step is two try and lock the contract up for around 70k, and then use my resources to find a buyer within the time limit in the contract. Is there anything Im leaving out? Or forgetting to investigate?

SOTC, did you say the property is priced at 34,900 but your going to try to get it under contract for a higher price around 70K? Or is the 70k the total for all 4 of the properties you mentioned earlier?

Hold on buddy. You are saying it is a short sale for 34k and change but you want to offer 70k *&^&%&^$%#%. Call me crazy or possibly I am not reading this right, but why would you want to offer about 36k more for this property. i hope i am reading this wrong. If you have a buyer and there is little to no rehab to be done and the bank has been holding on to it for a while, heck dude,offer them 34k put an exit clause in there subject to financing or inspection and get this puppy gone. You got a ton of equity in there to make some sweet $$$$. I hope i read all this wrong, but if i didn't get moving. Good Luck.....Jan

I read it the same way as you Jan!!!

If the property is listed for 34K,you need to do an inspection on the property to see what repairs are needed and add up the repair cost. take a good look at the property, if it needs maybe 15-20k in repairs put in an offer lower than the listing price.if accepted mark up your price under the after repair market value and find an investor/rehabber to flip it to.

Good Luck & Good Investing

whurndon

I am all confused with the numbers here. Maybe you can explain this better to us. Still wish you lots of luck !!

Paul

Hi Paul,the numbers we are talking about is this,never put an offer in on a property higher than the listing price.When you find a property either an REO or Short sale the listing price will come from a BPO which is ( a Brokers Price Opinion ) that the Bank will have done.You need to inspect the house to see what repairs are needed to bring the property back up to full marketable
value.what ever the asking price listed is,you can put in an offer lower than
what they are asking depending on what repairs are needed,if accepted and you have your buyers list in place you can sell for a little less than the market value to an investor for a propfit.Hope this helps you some.

Good Luck & Good Investing

whurndon

Lol, nooooo guys Im saying the seller (agent) wants 34,900, I'm asking if the offer I make to my potential buyer of 70k and then add the costs for repairs (because the seller stated that it needed a little "TLC") seems likely to be accepted.
I still have to view the property myself to assess an estimate cost of what needs to be upgraded or redone to add to the price in the contract.
Do you guys think I'm on the right track so far?

p.s. I really do appreciate all your comments, please believe Im taking notes on all of them.

So you guys are saying that after I find out the total cost of repairs, lets say for example, is 15k.
The property is priced at 34,900.
If I want to make 10k off the deal.
How much should I make my offer to the seller?
And How much should I make my price to the seller?
Just so I can get a feel for the numbers in your opinions.

Find a contractor who can inspect the house and give you a repair cost estimate, if the agent wants 34k for the property factor in your repair
cost and closing cost and add that to the 34k,then add your 10k and total it all up. If the property is ARV IS 110K,YOU CAN MAKE SOME NICE $$$$.
Hope this helps.

Good Luck & Good Investing

whurndon

I cant find anyone. Im lookin hard too. Just put two and two together and realized my boss is a real estate investor. so im lookig forward to speaking with him on the topic. Im looking for buyers. i've tried craigslist but no luck yet. any advice for some direction?

Try looking for buyers are a local investors meeting. Also, as stated in the Profit From Real Estate Now book, try flyers, bandit signs, newspaper advertisments, ebays free website www.kijiji.com and also put the word out. Business cards can also bring in referrals. Hand em out!

Hey DG family. quick question. Anyone in the Columbia,S.C. in the DG family Willing to help me on my quest for greatness. looking for the people in my area that can help me get started. Please let me know. It would be much appreciated.