All Forum Posts by: Craig E.

I like it. A simple option to purchase (at the original contract price) that extends 3 days past closing in the event the assignee does not close. Nice.

A no compete signed by the buyer/assignee within the assignment? Why do I feel that an assignee with "end around" intent will have no problem signing this and performing an end around? Either I'm paranoid or pragmatic. Thanks for the responses.

Haven't met a seller yet that is comfortable signing a restraint on alienation...I mean a no compete. They are already shaky and worried (in the real world). Not trying to be contentious, just emphasizing that (in my region) sellers and assignees are very intelligent and risk adverse.

S - If C's deposit is in escrow for purpose of the A-B contract, then A will allow it to be used in the new A-C contract (which C will of course close).

I - I forget which guru book or course teaches "The 20 essential questions to ask the seller and assignee to insure that all parties will behave as planned." I think I know where you are trying to go, but in reality (for most people reading this) assignees will rarely be the same (predictable) entity over and over. Sellers are almost always different.

Scenario: The signed A-B contract cannot be altered before assigning it to C (absent agreement by all parties, not likely and cumbersome). What happens if C (conveniently) fails to close and we reach the deadline? C loses his right to purchase under the A-B contract. B loses his right to purchase under the A-B contract. A and C now have the right to enter into a new contract for a new agreed upon price. What happens to B and B's assignment fee? How can this easily be prevented?

I'm from SF, but now live in the Sacramento area. I can't speak to out of state investing. There are opportunities here, but you need to move fast. I'll toot my own horn (weakly). I'm currently busy with buying/fixing/selling my own properties, etc, but I am a RE Broker/ GC/ PM. Feel free to contact me to discuss opportunities and the market here. I may be able to help.

Also, bummed I missed the BP meet up yesterday in Sac!

Often, the bank will tell the listing broker that if they (bank) accept an offer below their net requirement, the listing agent's commission will be reduced to cover the difference (not to exceed 50% of total commissions) Short sale commissions often total 5% (2.5 to each side). In this case, the bank knows your agent's broker is double ending it. The bank is probably taking all of the buyer's side (some don't honor a double end) and half of the listing side, leaving your agent's broker with 1.5%. Your agent and his broker split that based on their own office contract. The broker is probably telling the bank that they are contractually obligated to pay a minimum of 50% of all commissions, which technically means both sides for double ending it (i.e. a total of 2.5% commission). To close, the commissions are paid out at escrow. Without that pay out, you can't close. If it can't be resolved (assuming there is a legal dispute not actionable by you), have your lender do an escrow hold back for the amount in dispute. Someone will have to write a check for it. Either your agent or his broker (or you or anyone with proof of funds). It won't be cashed for the time allowed (I've seen a month ish), but the deal will close.

Once you demo the slab, it isn't that much work or cost to run new sewer and water mains. Trench deep enough per local code, size pipes properly, insulate pipes where they go through concrete and don't miss the walls you will be coming up in. Add a couple of extra clean outs in the yard (just because you can). If it were my rental, I would sleep better knowing everything is flowing and leak tight. Value add at resale too because all the other homes on your street have the old cast.

I would tie in water/sewer and bring the mains up/ cap off with clean out and shut off w/bib.. Bring in a power loop to a disconnect. Grade the land. sell! You've done what everyone hates to do. Infrastructure. Building a house is the easy part. Let a buyer now run with the "fun" part! Repeat process.

Saw this thread. Appropriate for discussing a negative trend. Thoughts?

CA (and other markets) inventory for "deals" in good locations is very tight. Investors need props (me included), and some are willing to do anything to find them. Scenario: Investor advertises as PMLer. When buyer responds with Q's re % of LTV/ARV, term, points, rate for prop x, PMLer responds that they must have the address to assess the deal. Buyer gives it to them. They correspond through the week (PMLer keeps the buyer tied up), while the PMLer (or PMLer's principal) purchases the property for cash. PMLer then denies the loan and is gone. The buyer seeking financing has essentially (unknowingly) been a bird dog for an investor posing as a PMLer. Note: This did not happen to me. Mainly a heads up. I'd also like to know if other PMLers and buyers have seen this.