All Forum Posts by: Sean Gallagher

hmm alright thanks, am I on the right track though?

First off thanks for your time! Basically Im looking for help and suggestions, please fill in the gaps where needed and please add anything if you can.

Heres what I have gained so far.

Find a property, locate owner of potential property, tell them your are looking to buy property in the area and wanted to know if they are interested in selling, they say yes.

Ok now what if this property is already for sale with a realtor? Don't they already have a contract with the homeowner?

Isnt wholesaling basically acting as a realtor?

ok so lets say the house is just vacant with no forsale signs, the owner is interested in selling. Now I guess at this point I would politely ask if I can check the house out, noting down everything that may need work. Then I would check out comps in the area as for what this house would go for in tip top condition. I would factor that into my offer. So say houses in the area in tip top shape go for 150k, needs about 20k in repairs, I think most investors go for around 70% LTV? so if the house is ultimately worth 150k, brings the offer down to 105,000, minus 20k in repairs, 85,000 so say I as the wholesaler want to make 10k off of this deal, I would offer 75k and if the home owner doesnt bite or isnt interested in my offer I guess no contract is made and I move onto the next?

so say the homeowner is satisfied with a 75,000 offer, may simply pay the house off who knows, I sit down and make a contract, what do I say? its like hey sir im going to sell your house to someone else and make money off of it, arent I a genius? What is a good pitch line here? I work with many investors that are interested in your property?

So I get the house under contract, in the contract if I dont close in say 2 weeks the house is no longer granted to me, meaning he can sell it to someone else. So under contract they have no right to sell the home to someone other then me correct? What if they do? lawsuit?

So they sign the contract, I sign the contract, with the 75,000 asking price with the assignment clause near my signature, then I head over to a title company where I tell them i will present an assignment contract and a buyer contract? I need work on the contracts because I havent made one up yet.. Would like more info on this process.

For instance say I find a buyer for 85k, I show them the house they are satisfied, hopefully without the homeowner present because I really dont want the investor to know how much I am making. I guess it doesnt matter since I am under contract to buy the house within a certain amount of time but it still just feels weird.

So the investor likes what he sees, where do I go from here? The funds, where do they go? I know we have to go to the title company, where what goes on? Do they look up the house to see if the title is clean with no lean on the property, back taxes etc? Then what? Who wires money? Homeowner doesnt have to be present at this time correct? Do I even have to be present? Can most of this be handled through fax?

thanks again

sean

thanks for the incite chris, seems like you don't want to see me fail and I appreciate that, i think the most expensive part of a home that needs work would be water damage and a new roof correct? I should have atleast 12k to work with and if I dont run into a house that is a disaster im hoping i would be ok? reo's are very little down, and low monthly payments, if I had the option to sell it for an ok profit I could move onto the next, or just do a rent to own option incase i couldnt get a buyer and atleast get it occupied. IM still learning, and i know im not 100% ready to jump into it, but i cant keep standing on the sidelines either.

selling my bike and I still have money coming in. I dont want to get into a rental that needs a ton of work done u know, but trim work, paint, spackle, etc. I dont wanna jump into a home that has water damage to the roof down the wall to the floor : ) . These banks are desperate.

well yes I lack the funds to supply 5 mortgages, the downpayments and such are huge, finding foreclosed properties reo, are very cheap.. With little down payments. If anyone comes across one they dont want let me know..

Correct I am looking for property/a rental to purchase and rent out. it doesnt have to be in tip top shape.

Is ownerfinancingdeals.com a legit site? If anyone is willing to find me a deal that would be very nice, i like the option there for bank owned financing, with a small down payment, and small monthly payments since theyre bank owned trying to get rid of them cheap

I think they were going to move out regaurdless, it just seems that having a broken fridge and washer made them scoot out a little faster. That is a shame.. is it possible to have a clause in the contract that states all appliances are in working condition and should be in the same working condition when the tenant moves out. That is of course if they chose to use them, and give them like a 2 week warrenty on all appliances? Just shooting ideas.

I actually found a site online that upkeeps with all contracts for every state. I ordered a complete packet, has eviction notices and all, just for my state.. 20 bucks not bad. It was updated in october.

http://www.nupplegal.com/derental.html

I went to the reia main site.. so i think and couldnt find any newsletter that you speak of.. What apartment associations?

so I should have the house inspected by a qualified person prior to renting. Im just trying to go through the whole process of what I will be going through to make sure im prepared. How much money do you guys usually set aside as emergency per rental? Water breaks, leaks, water heater, im guessing 5k per rental? And then figure new roofing every so often years. I have good contacts in all construction/repair areas so I shouldnt be hit too hard when that comes around.

Trying to put figures together of how much money I should have set aside seperate from the actual purchase price for things such as house inspection, advertising, possible bills prior to house is on the market.