OfflineNot sure if this is a good deal.
I do have a few buyers, but none that would fit this right now.
Working with an agent who works with Fannie Mae. This home is really beautiful, has 3 bedrooms, 3 baths, and basement is carpeted and can be used for rec room or office/bedroom. On 5 acres. It is going to REDC auction in about a week.
Was assessed at $414, an appraisal of $320 and offered at $289. However, I know for sure they would take $240 maybe even less.
I can't do an assignment on it because of it being REO and Fannie Mae will not let you flip for 90 days, unless it is owner occupied.
Because of its location, and the home has lots of extras, would this be a good attempt to assign in another way. The agent is very nice to work with, and thinks I could get around this. But he knows I can't be stuck with the home. I truly don't think I would. I am able to show the home, which I have done, but my last buyer has a limit of $200. But everyone loves the home. It was well taken care of. Cathedral ceiling and fireplace that goes all the way up both levels.
Any ideas? or advice? I look at other homes, but this one just won't "leave me alone." Wish I had more time to persue this one.
Or am I just smitten with this one?
Thanks
Sandi
Have a great house, not sure what to do
Posted on: Mon, 10/18/2010 - 15:50
Have a great house, not sure what to do
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- by sandiboots
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If you can't work a deal for this property just move on
Plus no sense in trying anything that would put you out of favor with the realtor.
Try and get a finders fee for it if you can't buy it
IF and only IF you have a real buyer lined up you could double close this using transactional funding. Or put your buyer directly on the contract for a finders fee. Otherwise it does not look like you could do anything else. Remember, investing in real estate is about the numbers and how you can make money period! Never get attached to a property because you like it. Move on to the next and forget about it if you can't make it work!
Good luck,
Michael Mangham
MD Home Acquisitions LLC
http://www.mdtfcam.com Transactional funds and POF site
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Thanks ilexbrown and Michael.
Needed a reality check!! What I did was send it to a couple other investors that I know. If I can get a finders fee, that would be great. And I will remember it is about the numbers. Even though we already know what is practical, hearing it again from someone else, puts it back in respective.
And who knows, at the auction it may not even go yet. And maybe I can still bird dog it to someone.
Michael, I did go to the auction from Hudson & Marshal. Think they sold close to 70 homes. I do know that after seeing the buyers premium, that I would not bid on an auction house, unless I was financially well off. Fees of $7500 and $5000 on top of the bid, is steep. A couple homes I had looked at before they went to auction, went very cheap, I was surprised.
And they sell one home in 2 minutes. Was very eye opening and spent some time talking to a man from Wells Fargo. I am going to the REDC aution next week. If nothing else, it gives me a chance to meet so many other investors in Wisconsin. The room was packed. I may even get "brave" enough to go to an REI group one night!!!
So back to this house, I will keep my feelings out of it, and I know the numbers could be good, but a finders fee would be all I could do with this property. If it is meant to be for that, it will happen and I will get my other stuff done today.
Thanks!
Sandi
Wisconsin
If you buy it as the trustee and the beneficiary will be the person who you 'assign' it to, you can assign to an end buyer by rescinder your rights as trustee to the new buyer after he pays you your fee. Having the trustee and beneficiary the same nullifies a trust anyhow. With the 90 day rule, tell your buyer that if he wants to take it out of the land trust and record it under his name personally, he will need to wait for 90 days. Make sure to find out when they start the 90 days. Is it from the initial offer, or is it from the day of closing?
Make sure to include a direction to Trustee with your offer and cross off the beneficiaries name so it is a legitimate trust being set up and the bank knows it. There're are a few other threads on DG about doing this.
I have heard of that before, but I would need the financing first to do that. Is that correct?
I did decide to just let it go, and did send it out to a couple buyers yesterday.
What kept me interested in that place was that it is in a fantastic area, between Madison and Milwaukee. And was appraised at $70,000 more than what I know for sure they would take. I would have offered even less.
I am getting my LLC set up in the next week, would this make any difference on buying as a trustee. Not real sure how this works.
I like Romans 15:13, and read the chapter to help encourage me.
Sandi
A trust has nothing to do with financing, just how to take title, and a way around double closing (and estate planning as well as making assets more difficult to place as an asset of your own).
Are you in WI? I want to invest near Madison. I have an AWESOME contractor there (my cousin Dan) and I've just been waiting to find a property there! Maybe we could partner up some time!
LLC and trustees are not related. Another way around assigning is to open a brand new LLC (ie 1223 Main Street LLC), but the property in that LLC, then sign over the LLC to a buyer instead of assigning a property.
I saw on the other post you read the other post explaining all the players in a trust. Hope this helps!
Hi
Yes I am in Wisconsin and would be willing to work with anyone. I am totally alone at all this, and I do find properties that need rehabbing. I also just started working with an agent through REMAX. He is a young or should say younger man with a family. He really wants to make money, and is willing to work with me.
And is looking for properties for fix and flip.
But please PM me if you want and we could talk further.
Thanks for the info and I am trying to learn more about trusts.
But do have one question. When you mention doing and LLC "per property" is that right? Isn't that costly or time consuming or how does that happen.
Sandi