All Forum Posts by: Tyler Bobo

Have you looked at the property yet?  First thing I would do is view it and verify the sellers valuation.  Huge question that jumps out at me is what repairs it needs?  Apparently mostly cosmetic if it's "move in ready" yet that means different things to different people.  If you and/or your trusted Realtor think it's a great deal then have your Realtor write it up.  That's how I'd get it under contract.  What you do from there depends on you.  If you have the means and interest to close the deal for a fix and flip or a longer hold (if those numbers work) then do that, otherwise, if it's something to wholesale then you can do that once it's under contract.  
Here's what I'd want to know:
ARV is after what repairs?
What do those repairs cost? 
Is that rent amount currently or estimated for after repairs?

Remember if the ARV is $492, you can cut off 6-10% of that for closing costs and concessions (depending on your market... ask your Realtor) when you or the investor goes to sell, so if that's almost 30-50k, and the rehab to get to the 492 ARV may need to be pretty darn small to get a good margin. Many people would want to see a large spread unless the rehab is super quick and easy. Good luck!

It varies a lot.

If you're wholesaling you can "close" your end by assigning the contract and someone give you a check and you drive to the bank.

If you're doing a double closing you have to go through the whole closing process, which depends on the way the end-user is buying (cash versus one loan or another) and can take 3-6 weeks or whatever that takes.

Nice job:) Love owner finance!

It may vary from state to state, here's how it works (usually) in Alaska, and probably similar elsewhere:
The Earnest Money is deposited when the offer is accepted. (can be held at the title company or the real estate brokerage) 
Then you "open title" by sending the contract to the title company (some states have realty attorneys that do some of this, I'm not sure the details for those states) When title is opened the title company doe a preliminary title report, meaning they're searching the title for all the liens and easements and restrictions, etc, and tell you what they're insuring (up to the purchase price) and what they are not.

If you are doing inspections and other due diligence, appraisal, well/septic, as-built, all that gets done in the mean time, if there's a deal breaker in your due diligence period you would get your earnest money back (check with your Realtor... if you're new at this and don't have one, get a Realtor)

The remaining funds for the property come when the deal closes, this would be the cash from the buyer or a lender. And the insurance is actually sold at closing, so if the deal falls through you haven't bought insurance (though there may be a cancellation fee.

So you call the Title/Escrow company when you have a signed agreement, and deposit earnest money at that time.  Good luck.

Yes, it's illegal to discriminate on age (unless it's a retirement community and do it correctly, then you can discriminate against young people.)  They'll give a 30 year mortgage to a 110 year old if they meet the requirements.

The easy way to do it is to sign a purchase contract with the seller, using "Justin Stetson and/or assigns" (that's what I've see here) and then you sell your contract for $_______ to a rehabber (or whoever) and they finish the deal.  If they fail you already got paid, so they usually do their due diligence before taking over. 

Fix that preventatively if possible, work on renting your property before the current tenant moves out. If they're leaving at the first of he month advertise a month early when they give you notice they're leaving.  When that doesn't happen, tell prospective tenants that if you hold it for this long you'll lose money, but maybe if they prorated for the last week (lessening your loss) then you could hold it for them, and they'd have a week to move since they likely have to be out of their place by the 1st.

Once you have the contract signed that you intend to assign, it should have wording in it letting you access it for due diligence as well as for showings if that's the intention.  Once I have a contract on a property I'm purchasing I usually have them supply me a key.  I'm not wholesaling, but sometimes will show property to prospective buyers and usually need to show partners or contractors. If there's tenants you'll need to give them proper notice, like 24 hour notice here in Alaska, and probably similar in other states.  Might have to have the seller or current property manager do that.

Do you have a strong Realtor? I think your recourse is going to be different depending on the state, the contract, and the lease and rental laws in your area.

Here, if I didn't know he was behind when the contract was signed then when that info came out it would be new information, allowing re-negotiation, just like when you write and offer and then an inspection goes bad, you renegotiate.  Also here, when the property transfers any paid rent gets prorated and the security deposit must transfer to the buyer, so if the tenant is there, you would get the security deposit for sure, though that may not be the case there.  And if you had a tenant that didn't pay rent as supposed to during the contract I would require that tenant to be gone or caught up before closing.  An eviction is a great way to start off badly for a new property.

If you've read that much you probably have a good grasp on many different tactics, many tools for your tool belt.  Have you been networking and getting to know the people in the field?  If you found a good deal would you recognize it?  If not, start there. Find someone who would buy your deals from you if you had them, and start bringing them deals, they'll pay you for your education and when you're wrong they'll tell you:)

     Once you start working looking for deals you'll become aware of what your market is good at producing, or what you happen to be good at finding, and that will be the best way to go.  If you find great rentals and flip a few to a buy and hold guy, you'll recognize a good deal after a few closed deals.  If it's a good area for rehabs and wholesale several to other investors you'll be at a point soon you can do one of them yourself, or you can partner with someone.  Just go get deals. Good luck.