Writing My First Contract
Hello..
I am new to real estate investing and to the site which I think is wonderful . I am getting ready to write my first contract for purchase and im still a little unsure ... I want to make sure that I dont mess it up !!!!!!!!!! I have a friend who is a Laywer but not a real estate lawyer should I contact them what legal services are good for newbies (without alot of cash flow ) Thanks so much
Renee :-o
What are your questions/concerns?
[addsig]
you tell people youve made lots of money in real estate but never have? really?
lots of people think that this real estate thing is some get rich easy, not work much, cash falling from the sky type thing. and thats partially do to all the gurus and infomercials who preach it. i dont know what you meant by getting scamed, but yes it is hard work.
in reality real estate is not a very liquid investment. it can be made liquide with lots of hard work and creativity. typically there are lots of holding costs, closing costs, rehabbing costs. so its not essentially a no money down type thing, not saying it cant be done because i have done it without any cash but its not really the norm.
you should join your local real estate investors club to network with others in your area who are doing the same. this site will provide you with more knowledge then most bootcamps and courses unless you need that type of attention.
try finding a really good deal, get it under contract then market it to other investors who frequent your investor meetings. basically whole sale it to them for 1 - 20k depending on the deal you get. this will give you cash to market and get going. or work a 9 -5 to build up cash reserves. its all about finding the right deal when you start out.
hope that helps.
yeah thanks for clearing that up.
it looks like your just going about it wrong. i mean 100 -700 dollars for a deal that someone may make 30k off of seems a little low. you need to get out there in the trenches and get these deals under contract yourself. sitting around the computer all day looking at properties in different states might not be the best thing to start out doing. find a local deal, learn who the local players are, establish relationships with these people. get a good deal under contract, then approach these people with a price "your terms" not theres.
example. you go to meeting and meet lots of investors/rehabbers etc. you get there numbers. you find a great deal through marketing or however you do it. you negoitiate with the seller as if you would be buying the house. you then figure what a reasonable price to sell to an investor/rehabber would be. say your in at 70k and the house is worth 150k but needs 20k in repairs. you market the house for 90k and either double close or if there cool with how much your making do an assignment. a good investor will be able to look at a property and tell you if its a good deal for them or not based on your asking price and the work involved. not on how much your making.
by getting the deal under contract you are establishing an equitiable right to the property, eliminating the factor of getting screwed by unreliable investors. find out yourself if the investors are reliable or not. ask to see deals they have done. like i said if your going to these meetings the people who are running the meetings and are up there speaking are the people who you want to talk with. look for cash buyers first (major players) who can close within a couple weeks. they know a good deal when the see one and will be fighting over it.
use the right contracts, establish a relationship with a good creative realestate lawyer who can better inform you on your legal rights when buying and selling properties.
hope this helps.
[ Edited by ZinOrganization on Date 02/13/2005 ][ Edited by ZinOrganization on Date 02/13/2005 ]