Clarifications
Ok I been doing some reading and have a few questions I hope can be answered. 1. Say for instance I find a house on the net in a different state. It has little damage. The guy is asking 100k and the house is worth 150k. Now I cant get to the guy and make a deal so is it wise to fax him the contract and have him sign it with a witness? Is this frowned at? Also if I talk the seller into signing me the house on contract for 100k then the equity is 50k right? Cause the house is worth 150k and I got it for 100k then 150k - 100k is 50k minus the repair cost. So thats how you gain equity in a house? So how would you work a HUD house? Say for instance you find a house in your area that is a HUD house and they want 10k for it. Now how do you find out what the house is actually worth? Is this where the appraisals come into play? And if you get a HUD house for 10k and find out its worth 50k your going to want to make the most off the investor right. So what would you do in this scenario? How much of if any do you spike it up? Do you have to assign the contract over to the investor for what you can get it for? I know this sounds a bit greedy but im just wondering if this is what you do. I have some more ? but ill get these answered first. I appreciate all the help im getting and look forward into helping others in the future.
-John
I just signed a contract yesterday on a foreclosure/probate house. Got it at 55% LTV. I had been talking to the daughter of the deceased for two months regarding her foreclosure and kind of fell into it.
The house I am working on now was an estate, and the one before that also. In both cases I dealt with the heirs. They tend to be motivated- they often live far away and suddenly they have this tax and maintenance liability when all they really want is some easy money...
Chris
Did either of you market to the people directly from probate? If so was it the executor did you market to or the beneficiaries? Thanks
In both of my cases the beneficiaries put the property on the market.
Chris
w/ your situation I would get pre-approved and include that w/ the offer.
What are you basing the 60% offer on? Long listing, fixer-upper?
You might consider working with a realtor to help coach you on things.
Are you making an offer of 60% of the listing price or 60% of the fair market value.
Many of the home in my area are already listed at 60% of a previous fair market value, so it would be tough to get them at 60% of that.
I am making offers on 60% of listed prices.
Hi NT...If I am understanding correctly, you are unemployed and probably need cash. Why not do some wholesaling and build up cash and credit before you invest in rentals. Just a thought!