Standard purchase agreement(with escape clauses of course) and an assignment contract. Also you can have your seller sign a disclosure, limited power of attorney(this allows u to market the property) and authorization to release mortgage info.
On my first deal, there was 52K in equity between purchase price and conservative selling price on the FMV. I had put down a $6000 deposit, I asked the investor for the deposit back plus an additional $10,000 (Total 16K) which left him with 36K, no repairs were needed (brand new home).
A registration to sitex has been the best for me. it breaks down all items on title, comps, and all transfers of ownership. There is a small fee, but it is WELL worth it!
Before you do sign anything, find out what really needs to be repaired and get an estimate on it. Do a title search and see if there are any other liens that you would have to pay. Factor all these cost in on top of the 250k and then see where you stand.
If your numbers are good the house must be a wreck inside. If not, it sounds like a good deal. Being that you have no idea what you are doing you should be EXTREMELY conservative in the costs associating with rehab. The big question in my mind is why the owner is willing to sell for 200k under market. Whats the catch? Look very hard before signing.
One more thing, you say you "Made an offer that was accepted". How do you make an offer without signing anything.?[ Edited by telemon on Date 10/24/2006 ]
Standard purchase agreement(with escape clauses of course) and an assignment contract. Also you can have your seller sign a disclosure, limited power of attorney(this allows u to market the property) and authorization to release mortgage info.
This is how I do business.
Probably not. You are taking most of the juice out of the orange.
How much do you need to pay the Homeowners for their equity?
[addsig]
And how much rehab needs to be done?
Looks pretty thin even for a clean, paint and flip. A lot depends on needed rehab, location and local market activity.
Jim
did you find the lead or did you use a service?
On my first deal, there was 52K in equity between purchase price and conservative selling price on the FMV. I had put down a $6000 deposit, I asked the investor for the deposit back plus an additional $10,000 (Total 16K) which left him with 36K, no repairs were needed (brand new home).
Never get to over zealous on your first deal. Stay humble till your up there with the big dogs.
Never get to over zealous on your first deal. Stay humble till your up there with the big dogs.
That does help, thanks!
One way might be to go to the tax records on each of the comps and see what the assessed value is for the land.
Not that this would give you the true land value, but it would at least be a starting point.
Hopefully other people here will post some better ideas for oyu.
zillow
reply
realquest
Get on the MLS and do a search
County records office of recently sold homes in that area.
THERE ARE SO MANY WAYS TO DETERMINE VALUE GOOGLE WILL TELL YOU ALSO YOU JUST HAVE TO ASK HIM!!!
[ Edited by compsciboi on Date 09/18/2006 ][ Edited by compsciboi on Date 09/18/2006 ]
i thought i already replied to this... but, you need to find some comps with double lots. Compare and contrast, try to extract an adjustment.
A registration to sitex has been the best for me. it breaks down all items on title, comps, and all transfers of ownership. There is a small fee, but it is WELL worth it!
The website is www.sitexdata.com We like to use it in my office as well. Good Luck
[addsig]
Before you do sign anything, find out what really needs to be repaired and get an estimate on it. Do a title search and see if there are any other liens that you would have to pay. Factor all these cost in on top of the 250k and then see where you stand.
If your numbers are good the house must be a wreck inside. If not, it sounds like a good deal. Being that you have no idea what you are doing you should be EXTREMELY conservative in the costs associating with rehab. The big question in my mind is why the owner is willing to sell for 200k under market. Whats the catch? Look very hard before signing.
One more thing, you say you "Made an offer that was accepted". How do you make an offer without signing anything.?[ Edited by telemon on Date 10/24/2006 ]