Contracts and Offers

First Investment

I'm closing on a fannie mae manufactured home in 7 days. I had a inspection 3 weeks ago and everything looked good. Yesterday I went in the crawl space and it had 2 inches water over 90% of floor. Its been raining with no gutters installed. I found water coming in where the deck attaches to the house, water drains back toward the house then down against the floor joist and into the middle of the crawl. It was OK at inspection. 80K on a good day for 30K deal. If I back out I lose 1000 dep and apx $600 in fees. This defect has been there all along just unnoticed.

I really need some advice on what seems to be my first deal. I have found a property i think is a perfect diamond in the rough.

It is a 5 bedroom REO property with a potential equity of about $60,000. I've done all the necessary background work and found it will require about $30,000 to bring it to standard.

My problem is that the bank will not accept a contract without pre-approval.

As a result of this problem, i will want to give it to an investor who will buy with cash from the bank and benefit from it as a result of my showing it to him.

When doing a double closing instead of an assignment, do you need to sign the Purchase and Sales agreement as your name and/or assigns?

Reason being, is that, I had found a Rehab property assessed over 418k and for sale for 290k. It is a multi-family and the owner is the realtor.

I had found this contract for assignments through the web. I thought this may help others in understanding the assignment process.

Sample Assignment of Real Estate Purchase Agreement
This agreement is made this ¬¬¬¬¬____ day of _____2008 between ____________, known hereinafter as the Assignor, and __________, known hereinafter as the Assignee. Assignor and Assignee hereby agree as follows:

I finally have 2 multi unit properties that I'm scheduled to look at Saturday. Putting ads on Craigslist paid off. I'm going to fake it till I make it on this one.

I need advice on how to go about this. What should I do first? I'm looking to assign this.

I know that the asking price on the properties are going to be at 65% FMV, that's what I told him I what I would buy them at. I did the comps.

I want to lock it up with a minimum deposit and have all the excape clauses in it. I'm not sure on how to fill out the P&S agreement. I do know to sign it "Name and/or assigns".

I am getting confused looking at these contracts. Can anyone elaborate for me on the difference between the two? If there is?

When assighning a contract do I tell the homeowner my intent or pretend as though I'm the one buying the house, which is impossible due to bad credit, barley enough dough, the usual. I know this qurstion has been brought up alot but never answered, so someone give me a straight forward answer.
taking things one step at a time.

Can anyone clarify what a flex option is?

We have just joined, big DG fans! Sorry for this first topic to be a negative, but we need help from anyone with a suggestion. We had a buyer/tenant who signed all contracts for a Lease Option, then defaulted. became a tenant kept paying late, still the seller tried to work things out for them. They ended up moving out with no notice. We listed the property for sale and are suppose to close on Monday. This tenant found an attorney to file a Lis Pendens on the property to cloud the title so that we can not close!! Laws are laws, so it seems and anyone apparantly can do anything!

Now I may be putting my foot in my mouth typing this, well no wait maybe my hand LoL. Anyway's I came across a video that talks about assingment contracts now I may have jumped ahead of myself but it talks about some good things about it. They talk about one statement as an exit claus is "Suitible" buyer fiancing. Also talks about attaching an addendum which will over ride anything on the first page. And a stealthy way for putting in the escape clause: Buyer has the unquailfied right to close property in any name or entity.

Pretty good info