All Forum Posts by: Al Murray

@Charlie MacPherson the key phrase is "Real Estate". When assigning, your equitable interest it's not in the real estate, but the contract. I agree, don't take random advice from people at blogs, REIA's or podcasts. I strongly suggest everyone take the time to speak with a few well versed real estate and contract law attorneys.

@Alexander Wardell it's good to have a contractor or 3 on your team, but a simple way is to reverse engineer and track what fixer-uppers are selling and reselling for for and what profit rehabbers like to make. Example, see a home bought by a rehabber for $100k, sold $200k 3-6months later and you know they like to make 30-50k/flip. Use MAO formula with a tweak as a baseline. Instead of subtracting repairs, subtract the original purchase price. (ARV x 70%) - Price, so ($200k x 70%) - 100k = $40k. That $40k is an approximate number for the repairs and the remaining 30% is profit and holding costs ($60k-recording fees, attorney fees, tax stamps,utilities,interests,etc.).

In reference to assigning, @Charlie MacPherson is correct.  You can not market to sell real estate you do not own, but you can market and sell your rights in a contract.  It comes down to disclosure and intent.  If you plan to assign your rights in a contract, that's all you can market.  You can not show pictures of the property, because the property is not what you are selling.  You are selling your EQUITABLE INTEREST in a contract to purchase said property.  Talk to the attorneys of the big-time rehabbers in the state and/or at the REIAs they will say the same.

Disclosure: I AM NOT AN ATTORNEY NOR DO I PLAY ONE ON TV. I AM NOT GIVING LEGAL ADVICE AND YOU SHOULD DO YOUR OWN RESEARCH AND SEEK YOUR OWN LEGAL COUNSEL

Hi Brandon,

Congrats!!! I'm a local broker and investor in MA next door to you in Agawam.  Let's connect!  

Hi Sean,

Who is requiring the septic to be installed before the sale?  Is it occupied? In most cases, you can have an addendum waiving such things (check with your attorney as I am not giving any legal advice).  Another way to settle that is, If you're paying cash/hard money, having the seller put the property into a trust and you transfer ownership interest in the trust.  Also, you could possibly do an escrow hold-back, where at closing the cost of the septic is held for the install.  If there is no mortgage on the property, you could give the seller the money to install the septic as a mortgage in the 1st position to protest your money.

When dealing with banks, they can complicate things so, the 203k could take some time or not even close the deal.

Hope this helps