OfflineDear Family,I had this guy awhile back wanting me to find him and his family a house to live in,didnt have no luck.He called me today to say that their is a house he wants in his hometown,it is listed through a realator,for 38,000,he has 3,000 for dp,and can afford 400 a month in rent.I will go look at it this week,I dont have know buyers,a little money,and unemployed,my credit is okay,how can I make this deal happen?Any input would be greatly appreciated,thank you fm!
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mike
Yes You can make anything Happen as long you stick to it, and never ever let somebody else tell you that you can't do it.
There is something you can try. I will attach Wendy Patton's lease option (free book) in a new topic on here. It talks about how you can get realtors on board, find you deals and you can probably get that house for him. The book explains L/O with realtors in detail, better than I can.
Actually, check out the thread below as I just posted it:
http://www.deangraziosi.com/real-estate-forums/everything-else/73158/lea...
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Your post caught my eye as far as the asking price, down payment and what he can afford. Do some number crunching for PITI and see hopw far the $400 a month will go.
Your next problem is going to be the agent. If this goes private with the owner holding, she gets cut out of the deal. I think she stands to make 6% of 38k= 2280.00
On top of that, I don't think the 400 a month is going to make your nut.
I am not saying walk away at this point, but these are some things you need to figure out before you proceed. There is a site on the web you can go to to find out what PITI payments will be. Just google piticalculator.
Hope this helps...Jan
Jan, I know you are right on about that.
I have a couple who only have $2000 down, and can do $500 a month plus the PITI and can increase that as time goes on. But he can also do a rehab, on his own. He even has supplies to rehab most anything in a house. He is on disability, she does have a full time job, and they can work on a place if they could get someone to help them get a place.
Now here is what I told him. We are looking at some rehabs, but I can't carry it for him. However, we are going to look for owner financing, and I also told him he could bird dog for me and make some extra money. And he is finding places now. I told him we will look for L/O for him and they were fine with that.
I work with two agents, and they do want their money up front, and I don't blame them, we all do.
So, blackboard, tell them upfront the problem and offer other options. Go on craigslist and put on an ad looking for owner financing or run an ad in a paper, of flyers. There are several people that may not advertise their homes, but would consider it.
I did check out the forum Dallas c put on and it is good.
Just be honest with these people, and they will find they need to work towards their goal.
Sandi
Thanks so much for all the great info,that is great stuff,unfortunely the agent called me last night,saying that it has already been sold,but we will both keep on looking,I'm just going to get more educated,for when I FIND THAT RIGHT deal,thanks for that great book Dallas.
mike
doesn't want you attached to this deal
I'd look for properties on your own without a realtor to get a better understanding and to have more control over your time. As long as that property is listed, you have to go through the realtor, and they can always sell the place at a moments notice.
Good luck to you
Thanks Elix for that info,I will try and do that!
mike
Try to keep the agents out of the picture.....Jan
You said keep the agents out,but alot of people on this site got sucessful on having a agent,what should I do on havlng a agent or not?
mike
Most successful agents don't like dealing with 'unseasoned investors' because generally they expect you to do most of the work, don't know what they're doing and most times can't find a buyer and hold up the sale.
We expect to do our job, they do their job and we meet in the middle to have as smooth a closing as possible.
If you can find one that is patient I say go for it, but I think you're smart enough to do this on your own without having someone over you.
I have 2 very good agents...but...I cannot use them for all my situations. I have them helping me find a home for one of my cash buyers, because the area I am looking in is hard to find that kind of house.
The situation where you have that buyer with hardly nothing down, and not much for monthly payments, and I have a very similar type buyer, I would not contact an agent for. Instead I am looking for owner financing for that person or L/O.
I do have my agents send me rehabs or foreclosures, and some motivated sellers. You need to make a decision on if the agent can help you. They don't want to waste their time finding you a house for a buyer with no money or no credit.
They gain nothing on that..
I found one REMAX agent who never worked with investors before, and now works with me. Then I found a Shorewest agent, she is older, and has done lots of short sales and very comfortable with assigning.
But you build some credibility with them, ( hope I spelled that right!) And now the Shorewest lady and I have become friends. And she thanked me for asking for her help finding a place for my buyer. When I have told her about some of the deals I think about, she offers free advice on legal issues that I need to watch for.
So with Realtors, you need discernment on when you need an agent and when to try on your own.
Does that help?
Sandi
Thanks so much on the info on the agent,that was a big help!
mike