Making An Offer
I know this is probably a lame question, but I have read a few books and looked at around 75 properties. I have been preapproved with a lender for 90% of whatever I want and possibly 100% with another lender. I found a multi-family that I want to make an offer on and have no sample documents or example of how to do so even in all the books I have. Can someone lead me to a source with examples and even a source or template?
Thanks for your time,
Just getting started
[addsig]
Look at simular properties and find out what they SOLD for (not listed for). Use this for a base of what to offer and adjust for the condition of the property. Asking price does not always reflect the value of the property.
Thank you so much for your reply. I have done that and I know how much I want to offer and all that I literally don't know how to
do this in a professional way. Is there a document template somewhere. I guess there probably is at Office Depot or something I just haven't gone and looked.
Thanks again.
In my area the local board of realtors will provide you a form for free that you can use. If you are new to this, you might want to pay $75 or so to have an attorney prepare the documents. The documents are not difficult to understand but sometimes they are overwhelming depending on your current experience with legal documents.
Good luck.
"How many is multi"? Atleast in my locale, there are different rules for under/over 5 units. I use the same contract as for sfr but indicate all addresses included. Haven't ventured into "commercial" yet. Good Luck.
You can get contracts at Office Max and places like that.
I'd recommend a state specific one. Go to any realtor and ask for a REPC or perhaps a bank, investment group, title company. They're not hard to find.
I use the same form for SFR's as I do for multi's.
ONE CAUTION.....you say that a lender will offer 90 or 100%. They are most likley talking about homes, and MAY be able to do that with anything up to a 4plex. 5+ units is considered commercial property and when it comes to borrowing money plays by totally different rules. I'd also add that the barrier to entry to becoming a loan officer is almost non-existant. I'd ask very specific questions, and get things in writing.
It is 15 units. Wow do I have to pay $75 each time I make an offer? I thought there was just a simple document somewhere thar would give me an example to follow. I have alot to learn.
Okay I didn't read that very well, I have some ideas now, Thanks so much.
The lender that offered 100% is because the property is offered so far below market value and the income is healthy. He is with Financial Federal and recommended by a friend.
No you don't have to pay $75 every time. In fact I have never paid it. I don't recommend using a legal form you don't entirely understand. If you do understand it, great![ Edited by myfrogger on Date 10/24/2003 ]