Motivated Seller vs. Motivated Buyer

Sounds like a great deal. He wants out and you want in. Try the lease with the option to buy in 2 yrs on the agreed upon price,then rent it for more than your payment for a positive cash flow. Make sure that some % of the monthly payments go towards your down payment at the end,
Then you can choose to buy ,or not to at the end .
Or you can go with the assign for a quick payday. If he owes 60k on it offer him 70k then assign it for 75 -80k.

Based off your previous post, Your BEST Situation for this deal is going to be to offer around 60%-65% of ARV(which according to you is $115,000), In other, offer around $69,000. Just make sure theirs No work needed to bring this property up to RETAIL Condition, cause if their is you'll need to DEDUCT that from your offer. This is the Absolute BEST way to put money in your pocket IMMEDIATLEY, Then you can do deals that require CASH RESERVES, Like: "LEASE OPTIONS" & "SUBJECT TO's", etc. This could Easily put $10,000 or More in your pocket within the next 15-30 Days, SULLY

After making the offer how do I go about putting cash in my pocket, and not have to use any of my own? I really do appreciate your help.

Thanks again, Newtonr

If the seller does not want to get into a lease option, what other creative metod can use or offer? I'm really trying to cover all my bases. I want you to know that I really appreaciate your time and advice.

Thanks, Newtonr

I saw that you just joined Deans website and I think thats great that you have a deal lined up.Just wondering if you have your Buyers/Investors to assign property too lined up and do you have a Title Co.yet.

If not you might want to make this deal a finders fee and tell an Investor about it.Unless someone on here can tell you something different.

some of us have been on here for months and are still trying to put the puzzle together and get our first deal.

Just my thoughts.

Jason Smith
San Diego

Can someone explain to me what the term "SUBJECT TO" means..... Would most appreciate it. Thanks....
Kingjuss

Thank you so very much for your interest and advice. May God bless you. I will consider assigning it to an investor, and receive a finders fee for it. Thanks again.

Sincerely, Newtonr

What is usually the percentage that is appropriate to ask for, when finding a property, and assigning it to a buyer?

Thank you,
Newtonr

Assignment fee is not the same as a finders fee.

Assignment fee- is where you lock up a property and no one else can buy it.They have to go through you.Your fee can be 5,10,20k as long as the buyer can turn around and make a profit.

Finders fee-is typically collected through a promissary note with another Investor.So an Investor will tell you what they pay anywhere from $500-$2500 depending on how much leg work you put in on that property and give them the info.

"SUBJECT TO": Buying RE "Subject To" Simply stated: Your buying or taking control of a property "Subject To" the existing financing(mortgage or deed of trust) remaining in place in the sellers name.Your taking over there loan.

Read the forums.it's all there.Better yet take the time and listen to all live conference calls and take notes.Thats what I did.Accually I think I will go back and listen again.
Hope that helps.

Appreciate the info. I sure will go read those forums. Was helpful though...
Thanks a bunch, Kingjuss

Newton,

If you don't have the book, get it. If you do, read it. A lot of this is covered in there and in this site (use the search option). Once you have a general idea of the big picture you will know what direction you want to go in. Without it, you will just end up taking whatever direction is available, which may or may not be the right direction.

For instance, if you have a solid rental market that would positive cashflow, then lease option like the previous poster said could be good.

If lease option isn't viable, then you may want to look to assigning the deal. You do not get a finders fee from an assignment. You are basically making a purchase contract almost exactly like you do when normally buying a house but the contract has the option to assign the contract to another buyer.

If the seller and you create the contract for $85k, but you know you could sell it in heartbeat for $100k, then that's just what you would do. Go out and find a buyer (investor or not) and give them the right to buy it for $100k - $85k (original price) = $15k in your pocket.

Now... with that said, like Sully said, offer around $65 if he wants $85. If you think it's worth $115,000, then you should be starting really low. Not just because you can always work upwards, because often the new investor overvalues properties too much because they want hit home runs right away.

Finders fees, as in bird dogging fees, are something different that involve working out an arrangement to more or less be a personal property finder for a investor. I personally would focus less on this aspect until you know your lingo and what is and isn't good deals so you don't burn any chances of working with local investors if the pool of them is small.