Idea Regarding Downpayments Coming From Seller

Comments(14)

• 
  motivated_buyer18th February, 2005

  You should consider a "sellers concession". This is perfectly legal and based on most states contracts theres a provision allowing you a seller concession to you which he/she, buyer gets back at closing for needed repairs.
  
  This accomodates both or yoyr business requirements.
  
  Good Closing
  
  joel

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  belacqua18th February, 2005

  Thanks mcole. In the case where it may only be applied to non-recurring closing costs, is that any different from a clause in the purchase contract: "seller to pay $x in closing costs"?

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  InActive_Account20th February, 2005

  Quote:
  On 2005-02-18 13:40, joefm26 wrote:
  If I fully disclose in the purchase agreement that the buyer will be recieveing a certain sum back, whether at closing or after and the bank passes it, then there is no fraud correct?
  
  If the bank knows about it is legal. When you hide it then you have a problem.
  
  As for cash as a "sellers concession" it is up to the lebder but usually it will be capped at 3%.
  
  Since your properties are less than 50K you will be dealing with local banks. Often local banks will be more flexible. So start talking to them.

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  joefm2621st February, 2005

  So if I include it in the purchase agreement and the bank okays the agreement, then we are fine even if thier normal policy is that only say 6% can be contributed back?

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  joefm2621st February, 2005

  Here is the verbiage of what I want to put in the contract.
  
  : Rents and dues if any shall be prorated as of date of closing. Seller to guarantee rent of up
  to two years or 10% total purchase price whichever is less, to be paid no later than 30 days after closing. All leases and/ or damage deposits, if any shall be transferred at closing. Seller to provide ay required occupancy permits.

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  kenmax21st February, 2005

  you can get what the deal is worth. if the inv. has the potential to make a large amount you can charge more if the margin is small so will be your commish.....km

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  rayosx21st February, 2005

  yes, but how much to pay to the investor and how much me ? what is fair ? for win/win Lets suppose that is a profit of $ 20,000.00 what is fair to keep it and what is fair to give away for the profit ?

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  ZinOrganization21st February, 2005

  first i would like to say that i run a number of newspaper ads all year long, and my response rate is very low. and i run them in the weekend realestate guide, every week, for a year.
  
  i think the title needs to be changed to something like "creative financing" or "we buy houses" or "sell your house now" something that doesnt look so shady. "looking for other peoples money" almost sounds like your a criminal or something lol. maybe try "looking for owner financing"
  
  i dont really know your market but your terms dont seem to intising to me. you might as well just be looking to buy houses subject2 and put out a we buy houses add. i think most investors who own multi fam properties are savy enough to know that those arnt very good terms for them, unless there in foreclosure.
  
  just my opinion.

• 
  ray_higdon19th February, 2005

  You pay for convenience. I cannot attest to the ability or non-ability of this particular mentor program but I know that what they would teach you can be found in this site, in the library, on the phone with other investors, at your local investor clubs and on books/programs you can get on Ebay for not too much money. If yuo are hungry enough you will succeed, if yuo are not hungry, the mentorship may only help you for a small slice of time.
  
  GL
  [addsig]

• 
  tzachari19th February, 2005

  Are your crazy?? Learn for yourself! Its out there.

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  RonInAZ19th February, 2005

  I met rich dad at a luncheon / seminar. Had some things to say that were motivational and a few that were sharp formarket we were in. That was all well and good for free. Not $2800.
  [addsig]

• 
  JohnMichael20th February, 2005

  When it comes to coaching and mentoring you will find a multitude of programs with all different options but do consider a few factors.
  
  True coaching and mentoring is better served in your local - learn about your market area and than interview the potential coach or mentor about your market area to truly provide you proper coaching and or mentoring one needs to know your local market.
  
  Sometimes you will find a coach or mentor at your local REI club or even doing volunteer work with one or two of the top realtors in your area that are active investors themselves.
  
  Many put a price as the deciding factor of an education and this is an error because the cost of ignorance is much greater.
  [addsig]

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  ZinOrganization20th February, 2005

  Ronnin - no offense but i think what John meant was to find a realtor who is an active investor and can show him the ropes in exchange for him doing small tasks for them. the problem with having a realtor who is also an investor find deals for you, is that they will take the deals themselves if they are trully investors themselves.
  
  
  yeah, i wouldnt drop that kind of change on just some phone calls and forms. im sure there are mentors out there for that kinda cash who will fly you out to see them and teach you one on one in the feild. maybe for more money, but if your going to spend alot you might as well get the real thing.
  
  i know John Micheal offers one on one in the feild coaching, and after seeing his most knowledgable replies i would much rather have him as a coach then rich dad. rich dad aint on here answering questions with informative replies is he. its kinda like a crap shoot if you dont know anyone who has already gone through it.
  
  as they say the proof is in the puddin.
  
  i would definetly interview the person before any checks are cut.
  
  thank god for the edit button, i need to invest in a spelling course. lol
  
  [ Edited by ZinOrganization on Date 02/20/2005 ][ Edited by ZinOrganization on Date 02/20/2005 ]

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  Tekture23rd February, 2005

  i am a Realtor and i would love the opportunity to "trade" for knowledge. In fact, i have already called all the investors in my area about this. Got one person interested, but she had a Realtor already. Anyone in SW VA?