Review A Possible Deal
I'm a licensed agent and I have a list of NOD's. I found a motivated seller who wants out. I did not give an offer nor did I tie up the property because I don't have my network of buyers yet to wholesale my deals. This is my first time doing investment and traditional real estate so I didn't want to risk anything yet til I am sure. I'm in Los Angeles so the prices are up there. I joined a local investment group but majority of them are beginners like me doing wholesaling. I have a list of hard money lenders, appraisers, contracts, CPA's, divorce lawyers, bankruptcy lawyers, real estate lawyers, painters, roofers, cleaners, etc. but no experienced investors to close with.=( I want to wholesale this for maybe $5,000-$10,000. I can't sub2 nor L/O. 4 Bed 2 Bath Built 1966 SQFT 2154 Trust Deed 1st $153,100 2nd $114,600 3rd $45,852 4th $70,000 All 4 mortgages add up to $383,552 Default amount $74,522 Fair market value $590,000 Repairs $25,000 After repair value $630,000 What contracts should I bring when "Assigning To"? - Purchase Agreement w/ assignment clauses. - Addendum I might do a double close just to secure it since I want to wholesale over $5000. Also what can I say to just give them a $10 earnest money? They might not think I'm serious. Am I missing anything in regards to my stat numbers?
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there is alot you should take care with on this deal in my opinion. First if you are an agent are you allowed to buy a house from someone in a foreclosure situation? I have heard there are the real estate boards don't like to see that. If they really want out you can simply have them deed the property to you with the proper contracts. Then they can walk away. Once you have the deed you have to redeem that property by paying the $74K in default to clear the title. And make sure its cleared by the county. Now you might be able to assign it to someone who wants to redeem it. And they can pay you whatever amount for that assignment. I dont think you can double close this deal until its redeemed but im not sure. If im right most investors pay off the default amount when they aquire a property in foreclosure so it has clear title and then they sell or lease it. does anyone else know?
I would love to help you on this deal. I just PM'd you with my contact info and a basic assessment of the deal. I forgot to copy/paste here for everyone else's benefit. Sorry, folks!
AllCash