All Forum Posts by: David Emanuel

@Wayne Brooks Ok, I'll get it under contract ASAP. Thanks!

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You stated that it's "being" sold. Did it sell for that amount already or is it listed for that amount? You will not be able to use it as comp if it's only listed for said price. You also want to make sure the comps you use are as similar to the subject property as possible. 

Figure out what the ARV of the subject property actually is, and then get a ballpark idea of what the repairs will be.

General rule of thumb to get your offer price is ARV*70%-repairs-your assignment fee*2=offer price

It really depends on the numbers you're working with. The price of the property & repairs, how much your monthly payments are each month, how much income the property is producing each month, etc.

Just ask yourself, how much out of pocket cash did I put into the property to acquire it, and what percentage of that am I getting back at the end of every year? How long will it take for me to recoup ALL of my out of pocket cash?

Assuming you've done a good job at educating your self first, this will be an easy problem to solve. You can do a simple google search for "real estate purchase and sales agreement" to find a ton of templates to choose from. I would choose a simple 1-2 page one that you understand and can explain to the seller if need be. 

You protect yourself by putting down an EMD with an inspection period. I would suggest you do at least 14 days for the inspection period, and at least 30 days for the closing date. Feel your seller out, and if you can negotiate more time, then do so. If you can not find a buyer during your inspection period, you loose your EMD. If you feel like you won't find one by your closing date, you simply ask the seller for more time. If he says yes, great. If he says no, then simply thank him for his time and ask him to let you know if anything changes.

As far as finding a buyer, you want to market your contract for sale on facebook groups/marketplace, craigslist, bandit signs, bigger pockets marketplace, etc. As i said, assuming you've educated yourself, you should know the ARV, have a good ball park of repairs, and putting it out there at a great price for another investor. If you have a smokin deal on your hands, you shouldn't have a tough time finding buyers.

Good afternoon BP,

I found a FSBO I would like to purchase as my primary residence. Me and the owner agreed on a price, and she doesn't want an agent involved to save money on her end. I have a pre approval from a few lenders, and they are just waiting to receive the purchase and sales agreement to lock my rates in, and get the inspection/appraisal process started.

The owner of the property will not be ready to sell until March 2021. My question is, how soon should I send over a purchase and sales agreement to get signed? I wasn't sure if it is too soon to get one signed, or if i should wait until Jan-Feb. 

Side info: We came to a verbal agreement on price after I did a walkthrough in early November. In our very first conversation, she said she wouldn't be ready until Jan when she gets her income taxes. A few conversations later, she said she would be ready between Jan-Feb. During the walkthrough, she said she wouldn't be ready until March. My assumption is that she isn't sure what month she will get her taxes, so she pushed it out to be safe.

I'm curious about what you guys think. Thanks!

@Mary Cronin She is a sibling of the deceased. There are 2 heirs of the estate, who will be receiving the proceeds after the property is sold, but I’m dealing directly with the sibling who is named executor in the will.

Hello BP,

I found an off market Philly property that I would like to purchase. The owners of the property died in October, and left a will naming a relative as executor of estate. I am dealing directly with the executor named in the will, but because of delays and closings due to covid, she has not put the will through probate yet.

We agreed on a price, so my question is can we sign a purchase and sales agreement before the probate process has begun?

@Tom Gimer I think people are mislead when someone says “wholesaling is illegal”. Wholesaling in real estate is the act of assigning a purchase and sales agreement, and that’s legal in all 50 states as far as I know.

I do understand there are some laws that may dictate the practice of finding an investor to assign your contract to, but I’m sure there are ways to do it without breaking any of them.

@Tom Gimer So if I have a property under contract in Florida, I need a License in or order to assign that contract?

I don’t understand what’s illegal about it if the same title company that agents sit and close deals with, are the same ones that will sit and close deals with an investor assigning a contract/double closing without a license. Why would they jeopardize themselves for an investor doing illegal activity?