Who Does What In Wholesale Transactions?
After putting a house under contract, if a begining wholesaler has very little money, how & when does he (or the Rehabber-assignee) handle the TITLE SEARCH, PROFESSIONAL INSPECTION, APPRAISAL,
and HAZARD INSURANCE?
How much money do I absolutely HAVE to spend before assigning the contract?
All my love and appreciation,
Barry
Once a house is under contract you find a buyer and turn the contract over to a title company for a closing.
The title company does the search and your assignment fee and all other closing costs are paid by your buyer at closing.
How much money do you absolutely HAVE to spend before assigning? Zero.
Bless you for taking the time to help.
barry
Be careful not to violate any Departmet of Real Estate laws. In california if you sell more than 8 contracts without ownership you must use a Broker or youre breaking the law
Thank you. excellent warning.
Barry
Have you had any type of Termite/Home Inspection Done? If not, have one done and see how much dammage there really is. The numbers sure look good, so no need to run yet.
There was a Termite inspection done but I have not scene the report Yet!!
Let you know when I do. I am going to meet with the agent on this home and see where we go from there.
MarkB
I am dealing with a termite house right now. I am just replacing a few boards and having it treated. This is the second house that i have delt with termites with and i have not found it to be a big deal. however, there are people that would say run. I have not heard of termites on the second floors to much. usually termites are where ever the wood meets the dirt (where the foundation is too low). If i were you, i would take a good look at it and buy it and fix it. That always make me nervous too but if there is a lot of equity go for it. just dont UNDER estimate.
I am dealing with a termite house right now. I am just replacing a few boards and having it treated. This is the second house that i have delt with termites with and i have not found it to be a big deal. however, there are people that would say run. I have not heard of termites on the second floors to much. usually termites are where ever the wood meets the dirt (where the foundation is too low). If i were you, i would take a good look at it and buy it and fix it. That always make me nervous too but if there is a lot of equity go for it. just dont UNDER estimate.
Well,
I havent seen the report yet but I believe from I am being told it isnt good.
Ok, let me share also more of what I saw. On one end of the house 4 windows the boards around the window were eaton so that when they were checked by the inspector they litterally crumbled to pieces and I dont mean a little bit of them I mean completely.
The dinning room floor which is adjacent to the windows I mentioned toward the from of the house where the main attack is noticble. That floor is like an ocean wave on a windy day
I can stand in one section of that room and be 8" shorter ....
I know from this from my years in construction and also specializing in understuctural repair that the mud plates under the floor joice have been eaton away.
Also, its quite possible that the beams supporting the floor joice either the peiring that supports the beams were improperly supported meaning they were probably used wood for shimming instead of steel which is what we used out in Oklahoma.
Anyway, I wont about that till I get my inspection report from my contractor I am going to have crawl under and inspect it.
I know the insects made into the walls on that side at least because there was evidence of it from the inspection.
Ok, that is what I know for sure. Its what I dont know that concerns me most......
Truth is, if it wasnt for the termites if had just been damage from living even poor habitation on the part of owners or renters I wouldnt heitate ....
I have some telling run, you dont want it but I have to be honest the equity in this one is really good.
Later for the rest of the story.
MarkB
Yeah, that sounds pretty bad. Do you guys have basements there or is it a crawl space with a dirt floor?
The house im dealing with needs all of the basment window frames replaced because they are eaton right through. However, there are not uneven floors or major beams that are infected. My case seems rather elementary compared to yours.
Florida and Georgia are very similar for termites with the heat and moisture we have. It seems as though the dirt under and around the house was not treated (poisened) and your house has provided a meal for generations of termites.
Just think about how many other properties you will find in the time you spend working on and worrying about this one. Unless a licensed General Contractor will give you a firm bid on bringing the house up to code, RUN.
[addsig]
Good advice one and all.... We have descided to walk away from this one at this point.
We are working on another already with not as much equity but a good equity position and no headaches yet to worry about
MarkB