1st deal newbie Any Help would be very appreciated

1st deal newbie Any Help would be very appreciated

Woodstock, GA · Member since 2016 · 36 posts · 7 votes

Other then a house hack this is my first deal.

I’m in Georgia so if any has any recommendations that would be Huge!

Found an off market deal with the owner elderly and living in another state. I have secured my financing by doing a cash out refi of my current home so I will basically be purchasing with cash. I have no idea what to use for a purchase agreement what it should look like, how I get it to him. Doubt he will do any type of E-signing. I’m sure some of the advice will be to speak to a real estate attorney. I’m going to go speak to the attorney closing my Refi as soon as I get Loan docs back from the bank. I am supposed to speak to the seller today to iron out the terms. He’s motivated and we are close on price.

ARV is around $147,000 rental comps are $1200-1400

We are closing in around $100,000

I’ve ran the numbers 100 times and feel very good about the deal I’ve just never bought real estate without an agent so I’m pretty nervous

And help from the BP community would be so helpful .

Also I want to set up an LLC for this purchase and I've never done one of those either. No clue on cost to maintain or start one

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  • Real Estate Agent · Philadelphia, PA · Member since 2017 · 184 posts · 87 votes
    6y

    Work through a title & escrow company.  I am not in Georgia but they should be able to assist with this or recommend a transactional broker to assist with the purchase and sale agreement.

    You can register a LLC online or with an attorney. Financing changes if owned through a LLC so be sure to investigate that aspect as well.

  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
    6y

    @Michael Sockwell

    A real estate attorney or a real estate accountant can help you set up an LLC. Reach out to few in the Atlanta area and see who has the best price.

    Good luck and let me know if you have any questions. 

    Hampton Tax and Financial Services LLC4.7106 Reviews
  • Woodstock, GA · Member since 2016 · 36 posts · 7 votes
    6y

    @Bill Hampton

    Awesome, do you have an hard money recommendations?

  • Atlanta, GA · Member since 2020 · 6 posts · 1 vote
    6y

    Hey Michael, awesome to hear you're working on your first deal. I know that DFW and Sherman bridge are some hard money lenders I've worked with in the past that are very easy to work with and pretty quick at getting funding. 

  • Real Estate Consultant · Norfolk, VA · Member since 2017 · 345 posts · 201 votes
    6y

    If you are purchasing it under LLC, make sure you know your options if you are planning to refinance it later. Banks or traditional lender does not usually lend money to LLC, hard money lender usually does, but for higher closing costs and interest rate. And if that is the plan then you should factor that in your analysis and make sure the numbers still look good even in that scenario.

    Congratulations on your first deal and good luck!

  • Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
    6y

    @Michael Sockwell just to clarify you have your financing squared away through cash from your refi or you're still considering options among which is hard money?

  • Lender · Member since 2019 · 86 posts · 30 votes
    6y

    Will this be a Fix & Flip or Rental?

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