New To This. But I Think I Found A Jem
I found a place that is in a neighborhood with $200,000 homes all around it. The seller is asking $55,000. It is only 969sqft but others of the same square footage are selling from $70,000-$90,000. From the outside it looks like it needs a paint job and landscaping. It also either needs a pressure cleaning on the brick chemney or the brick Chemny painted. I have not seen the inside yet. If I decide not to buy it how do I bird dog it to someone else. I think bird dogging means finding it for someone else and getting paid to do it. Im not sure im new at this.
either way get it under contract with an assignment clause. Get a mortgage contingency and some other "escape" clause, preferably with at least 90 days. If you decide not to go forward you have that period to try to flip the contract to another buyer.
With a house this small and cheap and in bad shape its never a bad idea to check on what vacant lots are going for in the area. Sometimes the land is worth more without a house.
can someone help me? What does the terms: assignment clause, mortgage contingency, "escape" clause. What does that all mean?
If I am not mistaken, Assinment clause simply gives you the option, in writing to assign the property to another investor usually for a fee. Mortgage cont. is a clause stating that the purchase of the house is CONTINGENT upon you being able to get adequate financing to actually buy the property. If you cannot, you are released from your purchase agreement and due your earnest money back (if you gave any). Escape clause is just your option to get out of the agreement for whatever reason, perhaps one of the two above. Hope this helps.
An escape clause allows you to get out of the contract without losing your earnest money. The mortgage contingency clause justs says you have to be able to qualify for a 'good' mortgage or the deals off (and you get to define what good is). Another common one is that the property passes inspection.
If you know a RE lawyer, have him help you get a basic Purchase Contact together, with a couple of escape clauses and the assignment clause, which allows you to assign the contract to another investor (a rehabber or builder). If you don't know one, find one, and try to find one that knows REI. Then market it.
If you don't want to get it under contract, contact other investors, or the local REI club, and see if someone will pay you a birddog fee, usually $1-2K.
Good luck
Peter
heyshid,
Glad to meet you.
I can just about imagine you setting there scratching your head with all this mumbo jumbo real estate terminalogy.
Kind of scary for a new person to see these words isn't it.
If you call some of those I Buy house ads in the paper and ask them what they are looking for as you have a real sleeper for someone, however you will need to make sure your interests are put down in writing, a true investor will have the paperwork to keep both parties you and the investor covered.
Now if you have a question like does this paperwork cover me, you can ask here and get the true scoop.
Try it you may like it.
John $Cash$ Locke[ Edited by JohnLocke on Date 04/14/2004 ]