Almost Ready To Take The Big Step :)
Im close to taking that first big step and attempt my first deal 
I just want to run this by everyone.
I have all the forms / contracts...etc
I have a lawyer for closing
And I almost have the guts to do this LOL
Does this sound right?
Also, what would a ballpark fee that I should expect from the lawyer? (I dont want to get screwed of course).
Thanks!!!
Ichiro
I think it really depends on what the lawyer is going to do for you.
In my area a lawyer gets about $400 for a closing which includes finding title insurance and getting a property survey. You can also ask all kinds of questions about the process (have him look at the sales contract for problems) included in this fee. The title insurance and property survey are payable at closing as separate costs.
-Adam
Hey, Ichiro.
If you're not already "married" to your lawyer, I can give you the name of a great real estate attorney in Wilmington, Ma.
He's a real bulldog, loyal to his clients. And unlike many lawyers, he's honest and ethical (the guy even teaches Sunday school).
What's more, he actually returns your phone calls.
Let me know.
Also, what are you planning on buying?
[addsig]
Thanks! I think I will try my original lawyer first and if I dont feel comftorable I will go with yours
I dont have anything lined up yet, just trying to get everything in order first before trying to find my frist deal.
Im just trying to find some houses to "flip" and make some good capital then go to doing rehabs.
Ichiro
Ichiro
A typical closing that includes a title search in my area is about $500.
I remember it costing about the same in MA.
Best of Luck
JohnNH
Is there a broker involved? If not, expect that you might need a little more legal assistance and in turn pay a bit more in legal fees.
Closing legal fees in your area are between $500 and $750. You can save a few dollars by having your attorney also represent the bank (assumming you're receiving financing.).
Also, having your financing lined up is far more important than a closing attorney at this point in the game.
In my opinion, downtown RE profs. tend to be the best in the area. I use Rosella Campian of Summit Lending for finance (617/859-0900) & Hallett Law Offices for legal (617/425-4805). I use them together atleast 4 times a year.
Thanks for all the info everyone.
Just want to clarify one more thing.
I find a motivated seller, get them under contract and leave a small deposit, then find a buyer, transfer the contract and im done.
My question is what if I cant find a buyer during the set contract time (30 days...etc)? then all I lose is my deposit to the seller right? Deal is over and everyone walks away?
Also, what does everyone here think about local RE Investment clubs? It sounds like a good place for a newbie like me to get some good info and avoid making any mistakes. Im just not sure or comftorable with how to aproach this.
Thanks everyone!
Ichiro
It seems your are trying to Assign the Purchase Contract. If you are working under that tight of a time constraint (30 days), you have to have a very good deal for either a end user or investor to become involved. You really need to know what your Buyers will/can do and their wants.
If you can’t find a Buyer you will not lose your deposit if you have weasel clauses in you Offer to Purchase.
Thats exactly what I was planning on doing.
Something that does not require too much initial capital.
Eventually I would love to get into doing Rehab.
Anyone have any options about Local RE Clubs (from my previous post).
Thanks,
Ichiro
1) RE investment club: Don't know, never belonged to one. There is a MA inv. club on this site. However, I couldn't tell you anything about it.
2) At the risk of sounding like a downer, this does not sound like a good idea to me. Atleast not in your circumstance. Medford is a very hot market. For starters, you have to find a seller who is willing to sell for less than what their property is worth. You must then turn around and find a buyer to pay full market value in a month's time. That's a tall order. If you do not have an expert's understanding of the Medford market, I encourage you to slow down and consider other options.
Care to discuss those options here? If so, let's start with your situation. What kind of money do you want to invest in RE? What is your tolerance for risk? Do you own your own home?
BTW, what you're talking about is not impossible. It's just a bit risky in your market. I sincerely hope your optimism prevails over my caution.
Thanks for the info
Everything helps.
I dont have too much $$ to start with and yes I do own a house but not much equity in it.
What other suggestions do you have?
Thanks,
Ichiro
Well, Boston, I'm going to politely agree and disagree. Given that Medford is a hot market I think its very unlikely that Ichiro can put a deal together for exactly the reasons you describe.
However I also think he should go out and bust his hump trying. In a few weeks or months he will either give up (leaving more room for the rest of us), actually put a deal together (in spite our expecations) make some money and be motivated to try it again, or he will become frustrated and begin to learn new ways and have new ideas.
In any case he's gotta try to actually make a deal in the real world to get over the "almost ready" stage and into the "trying" stage. and that hump is probably more important than whether he actually puts a deal together or not.
Ichiro,Get involved with your local REI club,you will find seasoned investors who have the knowledge and money to complete the deals you find. If you find the deal and assign the contract you will not incur any attorney fees. As the Nike commercials used to say "Just Do It". Once you do a few deals the fear will go away.
Thanks for the advice.
Thats exactly what im trying to do (find the deal and assign the contract)
Now as for the attorny fees, I would not have to pay because the buyer would pay for that right?
Thanks for suggesting the RE Clubs... I guess I dont want to call them and sound like such a newbie.
Thanks,
Ichiro
I atttended my first REI Club two weeks ago. I never knew they existed. You will not be uncomfortable there. There was a wide range of investors in attendance, newbies to the very experienced. You want to circulate the room, introduce yourself, ask questions (types of investing and areas) nothing specific, listen to other questions and collect business cards (call later to network).
The REI Clubs I know about charge $20 - $25 at the door. Normally meet once a month with a Speaker, some have in-dept seminars on week-ends.
I have attended a total of three different REI Clubs so far. I like to network. I intend to attend the rest this month. You have to decide which ones you would feel comfortable with.
A word of advice. I have noticied that investors attending the REI Clubs or other Real Estate Seminars are looking for step by step instructions to mimick. There is help there but it still falls back to the individual to take the initiative.
Thanks for the info,
I think there is a club somewhere near here (boston area).
Ill have to check it out.
Thanks,
Ichiro
Ichiro:
.
I agree with Taiyo: attending the local REI club meetings is a great idea.
I'm brand new as well, and just went to listen for the first two (like you, I was afraid of showing off my "newbie-ness"
I met a lot of great people, from first-timers like me, to seasoned investors. Everyone was willing to share info and I made some great contacts. I collected biz cards and called them later to start building my Investor/Buyer list (as opposed to Retail/Buyer). I got references for good attorneys, good CPA's, home inspectors, etc.
Just for comparison:
Our REI club charges $10 at the door/$69/year. We're welcome to leave biz cards, flyers of properties, etc. We also have an opening session where anyone with something to sell or looking to buy can address the group. It's definitely worth checking out.
Andy
Ichiro,
Commercialtalking's previously made point is well taken. I cannot say I disagree.
My favorite element of the RE industry is options. I am often quoted as makings comments such as, "You can't sand the floors of your stock portfolio or repaint your mutual fund". There are so many ways to acquire real estate and manipulate it's position in the market.
Keeping that spirit in mind, perhaps you can give yourself a few more options. When confronted with such a competitive market, I try to find what other buyers are afraid of. This is about the only place you are likely to find a good deal. The problem for you with this stratagy is that it requires you to rectify said "objection" prior to reselling. And in order to do that you will need to close on the property (as opposed to assigning the P&S).
Another angle is your primary residence: Selling it, buying another with better "bones" but poorer condition. If you allow atleast 2 years of full time residence (plenty of time to make improvements), you will be tax free on the gain (up to 250K-single individual) when you sell. (tax free beats tax defferred any day of the week). The huge advantage of this method is a risk gaurd. If the market falls you don't sell. No harm done. You live your life and sooner or later the market will come back. If you are paying a mortgage on your primary and obligated to purchase a second property when the market falls..... well, that might put a good size dent in your prospects.
The primary is, in my view, the best "starter" transaction. But then again, some might say this advice is worth exactly what you are paying for it.
Good Luck!
Ichiro,
It took me some time to make the 1st move too. The key is to be organized and have accurate information (total costs, financing options, comps). My first deal went well. It was a Fannie Mae 4closure, I got 100% financing, seller paid all closing costs & did all repairs. The house is in PERFECT condition. I'm working on re-financing to buy 2 more props.
Stay positive and focus on making the deal work. Don't get caught up with the "what if's". Do the math, ask questions and make it happen!