How To Prevent Getting Ripped Off.
Hi,
I have a great deal that is 4 plex selling for 415k and is worth 550k per MLS comps and needs about 25k in repairs. I was just wondering if I post this as a lead on this or other websites what keeps an REI from going on MLS and pulling up the address on your lead and getting the RE agents number and cutting you out of the deal. The required fields have the address and every thing else on there. Should I just put a fake address? Also should I just put an offer out myself and assign it to someone. Is there a big $ difference between the 2 options? And what happens if I cant sell the lead. I want to finish this today if possible.
Thank in advance.
Jon
You'll have to get in under contract to be able to resell it. You can advertise it however you want but the reality is that when you go to show the property and they see a realtor sign in the yard, they are going to ask questions. Also how did you plan to get into the property to show it?
My advise would be put it under contract with a closing date as far out as possible and also agree on some terms to allow you to get into the proprety from time to time to show it.
If this is a REO, it will be very hard to do.
Ok well, what if i give this lead to someone. How do I insure I get paid on it and how much can i expect to make off it? Sorry but this is my first deal. Know one has offered me a contract and i cant find one online. I dont know what to do but i know i am sitting on a goldmine and i need cash more than i can express. Thank you
You should buy yourself one of those Guru's real estate courses. Ron legrand, etc.Before you decide to implement a deal.
OK ill do that but for now what should I do. There is 110k in instant equity in this house. I dont want to just walk away from that.
as far as money fast, it never happens that way.
I think you'd better recheck the numbers and drive the comps. It's pretty rare to have something on the mls with $100k equity in California.
Until you get some strong relationships with investors, you'll perobably have to get the deal under contract before you can make a real play an an mls deal.
Good luck!
Di
Well i had an appraiser I know go out there and he verified what she said and i saw on the MLS. How else can I check it out?
Okay, before you get too excited with this, let's break it down to what it really is (or isn't in this case).
First and foremost, this is not, I repeat NOT a deal that any active investor will be willing to pay you anything, in most cases. Why you're asking? and the answer is simple, because it is MLS listed. Any investor that is in this as a business will already have access in some way to the MLS, so by default, they will already have access to this property's info. Birddogs get paid when they find properties that the investor would otherwise not have known about.
Now, on to the possibility of wholesaling this deal (where you get it under contract, and assign, or double close the deal). This likely is not a wholesale candidate either. Why, because there is not enough "equity" to cover two people trying to make money off of it.
By your figures, FMV is $550K. If the investor goes "by the book" on figuring costs, he would offer 70% of FMV, or $385K. As you can see, you're already $30K in the hole, and you haven't even deducted repair costs yet.
I'm not trying to be rude here, but it really sounds like that you are very green when it comes to real estate investing. If so, jumping in with both feet at this time is probably a very bad idea. I'd suggest that you step back and try to educate yourself a bit (try your local library, or nearest REIA) before trying to get into this business.
Roger