All Forum Posts by: Chris Bounds

@Angelo Behar  I understand your frustration.  Been there before!

Remember, as the purchaser you have control over closing the loan.  The lender may decide to back out of the loan, but you still decide if you want to agree to their terms.  It may come down to deciding if $2000 is worth throwing the whole deal away or not.  That may be beyond irritating, but if there is still a lot of profit to be made then I'd go forward and note the lesson learned for future deals.  Otherwise, if you really want to make sure you don't lose out on the $2000 you can try to get the seller to sign an extension while you look for another lender.  Going that route you'll also need to decide if its worth the extra hassle (paperwork).

@Angelo Beharor simply have them credit that amount towards your closing costs.  That is likely the simplest solution.

@Angelo Behar many conventional lenders (and even hard money lenders) will not allow you to receive any money at closing of a purchase.  In this case, I'd just insist on lowering the purchase price by that amount.  It's not cash in your pocket, but at least it's not lost money.

Done!  If I'm in the car then the podcast is usually on. Keep up the great work!

I have two direct mail campaigns currently to absentee owners.  Each have about 900 addresses.  I am sending them every 4 weeks.

Campaign 1 - Postcards: On my 2nd batch.  I just closed on my first deal from this campaign.  

Campaign 2 - White typed letters:  My first batch goes out today.

My target is to get 2-5 deals per campaign.

@Marcus Kennedy as long as your contract has conditional clauses (repair costs, financing terms) then you should be covered in case your numbers are way off.  In that case you can come back to renegotiate or void the contract (per the contract terms).  Otherwise, if you decide to call them back to make an offer do not let much time lapse.  Maybe tell them specifically that "I will call you in 1 hour" or "at "5pm tonight" so your are giving them an expectation to look forward to.

Marcus Kennedy one more point to making offers on the spot. Know the comps and your max offer assuming no repairs well before going. Then you'll only need to deduct estimated repairs and a little extra for unknowns while you're there.

Marcus Kennedy you can wait to run numbers if you want to be very conservative and careful, but I prefer to make an offer on the spot. You don't want another investor to swoop in after you leave with an offer and you miss out. Of course, make your offer to the actual executor and not other relatives.

Jack,

Earnest money is completely negotiable.  I've bought several houses with zero EM.  Whatever amount you end up agreeing on be sure to deposit it with a title company / closing agent instead of giving it to the seller directly.

Regarding wholesaling, you should let the seller know that is your intention.  Using [your name/company name] "and/or assigns" is one way to write to write your name as the buyer.  In Texas, real estate contracts are assignable anyway so that is not necessary.  I'd assume that to be the same in MA, but you might want to check on that with a title company first.

Good luck!

If you find and market a great deal buyers will find you quickly. Other than that, attending local REI club meetings and social events is another good way.