All Forum Posts by: Account Closed

Yes that is true. But you need to close a few days before any tax lien auction to give the title company time to pay off the lien.

The exact same procedure you go through with any property, even the MLS. Get contract with seller, close to get ownership on property. If you feel the seller (your friend) might not go through with the deal then you can file a NOTICE OF CONTRACT which is a one page document that is filed with the Recorder of Deeds that states you have a contract to buy the property, but don't put on it how much you are paying, just the parties involved.

My advice to new investors is to start wholesaling properties. This is the quickest and best way to get started with the least cost.

First pick a neighborhood that you are either in or close to. Driver around all the streets and look for vacant houses. There should be some. Then look in the county assessors website to find the owners. it should give their name and mailing address. Send them a letter telling them you found their house to be apparently vacant. But if it is obviously abandoned, say so in the letter. Tell them you will pay them cash for a quick close.

Many times the owners don’t update their mailing address with the county so you may get the letters returned. I use beenverified.com to get the most updated info. It costs me $24.95 a month but it is well worth it because it also gives me email addresses and phone numbers.

If you are going to buy the property, fix it up and then either sell it or rent it then you are through.

But if you want to wholesale the property to another investor, then contact a local RE Agent to give you a list of all the houses in that neighborhood that have sold in the last 5 years with all cash. This typically is investors. Then again go to the assessors website and find their name and mailing address. And again use beenverified.com to get the best and latest contact info.

Once you get a response from the seller of the vacant house, negotiate a deal to buy it for all cash. Then immediately contact all the cash buyers you just found that buy properties in that neighborhood and tell them about the house and would they be interested in buying it.

Once you have done all that with that neighborhood, go to the next one and 'rinse and repeat.'

I hope this helps.

Steve Anderson

NO you get a contract with the seller for as little as $10 to $100. 

Great questions and yes try to get them answered is the job of the listing agent.

Hi @Monica Diaz I can help you.

You negotiate a deal with the seller that makes sense for you to wholesale it. Many people use the 70% rule, but I use my own 65% rule. Which means I find the ARV (After Repair Value) x 65% minus any costs estimated for repairs. That is my MAO (Maximum allowable offer) which means that is the maximum price I'm willing to pay for the property. But I start offering a lower price to start. To get a house under contract you will always have to put up some money (EMD - Earnest Money Deposit) to make the contract legal. Then you sell the contract to another investor for more than you have the contract for.

As far as the money you put up it is as little as you can but it also is negotiated between you and the seller. 

Check with your attorney or local realtor as we cannot give you one.

Just like any type of investing it all depends on the amount of marketing I do. My first deal I did in Orlando (I've only been here for 3 years) was a tax deed property. I only go after properties where an individual owns the house, not a business. When an individual has the pay the taxes then the likelyhood of a low loan is good. This owner of this house had no loan and was $10,000 behind on his taxes. He could not pay it so I negotiated a deal to buy his house for $20,000. I would pay off the back taxes and stop the auction and he would get $10,000. The ARV on this house was $80,000 and it needed about $8,000 in rehab and it had a code enforcement fine (pool) of $15,000. I sold the contract to an investor that would fix up the property and negotiate with the city on the fine and fix up the pool for $30,000. I made a quick $10,000 and the investor got the house for 38% of ARV.

First the contract you have with the seller has to state that you can assign the contract. Does it? If it does then the seller DOES NOT sign on the Assignment, just you and the buyer. The buyer then will take over your position on the contract and be working directly with the seller as the buyer. You just make sure the title company the buyer is closing with gets a copy of the signed Assignment Agreement so you can get paid.