What Is The Best Way To Structure This Deal?
There is an REO that a bank has listed with an agent. It has been on the market 4 months now and the landscaping is really looking bad. It was built in 2003.
The listing agent said the ank wants it off thier books and open to any offer.
What should we offer? I heard if you offer a bank less than 80% on a newer home they will not look at it....is this true?
Should we offer 75% (a little more than what the bank got it for) and offer them to close in a week by using hard $.
ANY SUGGESTIONS WOULD BE GREATLY APPRECIATED.....We are submitting an offer first thing tomorrow morning........
THANK YOU
Lookin inside the windows only. Inside condition looks great. The landscaping (basically only dead grass and some plants)is the only thing me and my business partner can see wrong with it. Great surrounding neighborhood and an eyesore for the street.
I also hear that banks do not look at offers that are assignable is that true. Should we use hard $ or send the offer that is assgnable?
so how should i start?
I have already given you my take, it doesnt seem like your listening.
Go to your local Real Estate Investors club meetings meet people and talk with people who are doing it in your area. buy books and courses, if you need to buy them cheap check ebay and other auction sites, check the product section on this site. subscribe to this site and search the archives and articles. There are so many ways to learn its crazy, you need to be motivated on your own to find those ways and people.
Ray,
You have not informed us as to what you are looking to do. There are many possibilities. Specifically, what do you want someone to teach you? How much are you willing to pay this person? What are your goals?
Regards,
Ed
entrepreneur_ray
What are you looking to do? Foreclosure? Landlording (Buy/hold), sub-to? etc? There are lots of ways to invest in RE.[ Edited by d_random on Date 10/07/2005 ]
Ray,
I think what everyone is trying to suggest is that you have a business plan and an exit plan.
Just thinking or saying you want to do this or that will not make those things happen.
And you’re not alone there are a ton of folks in your very situation.
Our industry is full of people who watch late night TV and buy into the idea of "get righ through real estate" and yes you can get rich... But most wont... They will buy the wrong property get fed up and never try again.
When you decide what your business model is I caution you to find the money before yu find the deal.
The money looks like a few different scenarios.
1) An Investor you can assign the contract to. You will not make the most but you may learn the most.
2) Introduce yourself to Hard Money lenders, learn their specific lending requirements.
Ask them a few questions
a) what their loan to value ratio is?
b) is their value purchase price , AS IS condition or after rehab price.
c) will they advance fix up costs.
4) will you have to make payments?
Most Hard money lenders will allow the seller to subordinate their carry back
3) Assuming your credit is good apply for some credit cards or increase the limit on the ones you have. I do not favor using credit cards to buy houses but it may be the only way you can come up with enough money.
4) Find someone else with money. You would be amazed at how many people you know who can touch 20k, 50k even a 100k. Make it worth their investment. Offer a return based on their participation.
Example; a deal costs 40,000 to put together.. if they put in the whole amount give them a 1/3 of the net profit. If they only can do 20k give them 1/6 of the profit.
5) if you cant find the money make the deal work based on the money you have.. If a seller will sell you their home for 100k all cash offer them more for seller financing.
One thing to do between now and the first deal is to learn how to make an offer. Understand that in almost every situation a deal can be made. A great poker face will go a long way.
Last thing.. NEVER say this is my first deal....
Thanks IBuyHousesInc., your info was very good for a beginner. Like Ray, I am also new to REI. Unlike Ray, I do not have any money to invest, but I have been reading everything I can get my hands on and I have joined my local Real Estate Investors Association. That was the best thing I could have done to meet other investors, listen to guest speakers and network with others in the profession, like lenders, contractors, etc.
You can also read for free at Barnes & Noble, Borders etc... they have a lot of great books...
Ray,
Not everything out there is a scam. There are some out there that have good information and they can help you out if you are motivated [ Edited by jfmlv1950 on Date 11/04/2005 ]
with all the information that is out there when you read so much it can be hard to remember it all. take notes and try to find ways to apply the teachings to your own ideas.
E Ray... In this business, if you think education is expensive...think of the cost of ignorance!
[addsig]
the only person that actualy even tried to answer rays question was Ibuy, I am fairly new to realestate I have bought raw land at tax forcloser sales (around 20 parcels) I have bought and sold I mobile home, bought a bank forcloser and rented it out and right now I am rehabing a home and I will refinance it and put a renter in it for a year or 2 before I trie and sell it
I have read as many books as I could get my hands on
but if I wanted to buy a house I would look for a fixer upper, with motivated seller that would do owner financing (you will learn alot on your first deal) if you get to carried away in learning everything there is to know about everything you will never get started its called paralysis of analysis, but I do believe in gaining as much knowledge from books as you can while you are looking for a deal to close, you can never read too much but dont think you have to know everything before you ever start
the problem is that some "newbies" want someone to give them a step by step guide. so here it goes:
1. get out of driveway, take a left. at the stop sign check left before making a right turn, drive 10 miles, take a Right on road X, the house is 25 Road X.
2. the asking price is 100K but make an offer for $95k and ask for some concessions ( ie $5k towards closing costs and prepaids)
3. get property under contract.
4. go to HD or Lowes buy white and blue 5 gal paint.
5. paint all rooms in blue with white trims
6. put a for sale by ower sign in the front yard
7. list house for $125K
8. close within 30 days
9. take your profits to the bank, maybe take a vacation
10. start all over again
sarcastic as this may sounds, Im sure you get the idea ( hopefully I didnt offend anyone)...
The point is that most investors will need assistance and advice but they will succeed if they know what they want ( maybe determine what area(s) of real estate they are interested in), and are willing to learn ( from books or other more experienced investors) what it take to get there...
Almost all the previous post touch on this..[ Edited by vguess99 on Date 03/10/2006 ]
Knead2Know,
You might check out Bay Area Wealth Builders if this is not one of groups you have found. They meet in Mill Valley once a month.