MichaelC
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Posts posted by MichaelC
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I missed her call yesterday but waiting a call back now. Wondering your thoughts on how to get this one to close?
Normally, with this being a simple assignment of a Pure Option to a third party, you would only need an assignment agreement between you and your buyer, stating the amount of the assignment being paid. The agreement is signed, you are paid, and you're done.
But this deal is a bit more involved as it seems the homeowner is leaning on you to see the deal to completion, and she is offering seller financing to the buyer who, of course, needs to see this noted before dropping any cash. That's why I suggested an attorney to tie up the loose ends and bring the deal together to everyone's satisfaction.
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Mike, did the attorney get back to you with some answers?
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Who would pay for the lawer service?Whichever party the lawyer is representing. If he is representing all and simply facilitating the completion of the deal, the legal fees are typically split.
Now how do i secure the deal with only a verbal agreement from the buyer? When and where does he put the 20 k down?A verbal deal is no deal at all. You need to get a signed agreement and a nonrefundable good faith deposit, (the more, the better). The balance of the agreed to down payment would go to the attorney who will distribute it at closing as per the instructions you provide.
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Very unusual that a title company doesn't have an attorney on staff or at least on speed dial.
I'll suggest the obvious: try another title company, or contact a real estate attorney directly. You can contact a local real estate club for recommendations for either. -
I want to be sure I understand the deal, Mike.
1) You assigned your Pure Option to a third party?
2) Your option price is $75K?
3) Your buyer offered $80K, total price; $20K down; $5K to you as assignment fee and $15K to homeowner, leaving a balance of $60K?
4) Seller has agreed to finance that $60K?
Is all the above correct? If not, what am I missing. If yes, the wise and easy way to do this is bring the deal to the title company/attorney that will be handling the closing and they will handle the paperwork and specifics. With three parties and seller financing involved, it's best that everyone's interest is protected and the paperwork is correct. It's a few dollars well spent.
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I would suggest you have an attorney draw up the paperwork, to protect both sides from any misunderstanding. The cost shouldn't be prohibitive, especially when compared to the cost of traditional bank financing. Also, you might be able to get the seller to split the cost. And you might also try the title company to see if they can help with the necessary paperwork.
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Benefits of owner financing are great, and usually for both parties. For the seller, it means a faster closing; monthly income; and a deferred tax bite. For the buyer, you don't have to deal with all the BS the banks typically hit you with, including a hefty down payment, closing costs, etc. Definitely a win-win in the right situation.
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If you dont mind me asking...what do you put your properties in...your name, llc, land trust?LLC has always met my needs for privacy and protection.
Also when can your new book be ordered? I saw it mentioned but didnt see how to order it.Another member asked me this same question the other day, right here. Second to last post.
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Rich, I am not in a position to offer advice on legal entities in PA, never having set one up in the state. Advice I don't like to give but I think it is best I do in this situation: contact a professional in this field and do the right thing for your needs.
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Rich, I'm not familiar with the specifics about how PA handles this. What are you running up against?
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When is your new e-book going to be available by the way?
I'm aiming for early summer, perhaps sometime in May. But truth be told that is a rough estimate based on the slow pace I have going on it presently. Seems there is always something that gets in the way of sitting down for a few hours and hammering away at the ol' keyboard.
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You're right. In some instances we have no choice but to work with an Agent, and that isn't necessarily a negative. The key, as you already alluded to, is to find one who is an Agent/Investor if you can. Or at least an Agent who is investor friendly. One who understands what you do and how you do it. He or she becomes an invaluable part of your network and is well worth any fees/commissions you pay.
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Hello, Masterkey, and welcome to The Naked Investor!
I don't know who this real estate "trainer" is, but he is wrong. Why do you have to sign an exclusive agreement with the Agent? In fact, I suspect many Agents wouldn't agree to work with you to find a tenant/buyer since you are not the owner of record. In fact, the Agent would probably tell you that what you are doing is brokering real estate without a license and would threaten to report you.
There is money in telling new investors how difficult this business is, (so the "genius" can sell you an expensive get-rich-quick program), but if you are doing an assignment you will be hard pressed to find an Agent willing to work with you for the reason I stated above. Keep things simple. Find the t/b yourself and keep the money you earned where it belongs: in your pocket.
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Steve, this is to provide the homeowner with time to make their plans should the t/b elect not to exercise their option to purchase.
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Penny stocks? Biggest scam and fraud ever put forth in the history of mankind. . .
Well, not quite, but they are highly speculative and mostly unregulated. Not a good place to "invest" one's money. Go watch Wolf of Wall Street.
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. . .Now all we need is an economy where people can start making some money.
Or, become a counterfeiter and print your own. You know, like the Fed does.
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Hello, Lynn! Yeah, you are correct about Craig's List. Seems to be little respect for the FSBO section by many Agents.
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. . .Guess we'll see if this might open up some potential for additional email marketing?
Let's hope so because Craig's List doesn't cut it anymore.
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Steve, from what I have read Zillow purchased Postlets back in 2011. They completed their purchase of Trulia about a year ago: http://www.housingwire.com/articles/32968-its-official-zillow-now-owns-trulia.
I've always like Postlets, too. One ad and it's fired out to a handful of other sites. And, yeah, Craig's List has become a hotbed for spam and loons.
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Ahh MC, I think you spoke to soon. 14-0 baby!Yeah. . .at least Little Blue kept it close. Tough times to be a Giants fan. . .
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I must confess ignorance about VRG. Sounds like a good fit for any investor-agent. Emphasis investor.
Oh, and Steve, sorry about my boys in Big Blue ending Panther dreams about an undefeated season. Ask the Patriots. . .
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Hey All-
Good News! After one year I'm breaking away from Corporate RE firm and going back on my own!
I'm going with a national "virtual" brokerage and keep 100% of what I make. No longer will I have a corporation's hand in my wallet. And I only have to answer to God and big brother. I can use my company's name brand and have access to tons of stuff for marketing, e-sign, cloud storage, contracts and so much more with an online back office. Free!
Most important, I will also be able to structure deals without the traditional corporate restrictions of a big box RE firm. They are my deals and not the firms. This should allow me to get more business and more deals, and that's a good thing.
Should be fully rolled out by the first of the year. With this, I will be more a Licensed Investor and less a realtor in my business model.
Back in the fold, baby! Where you belong. That's the correct business model for you.
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Legally, you can not manage that property unless you are a licensed Realtor. That said, the Real Estate Police aren't looking for you. I mean, one individual managing one property isn't going to put you on their radar. Weigh the pros and cons, Mike.
As for getting her to lease option the property, all you can do is ask and present your ideas. But it sounds as if she wants a safety net in place in case Georgia doesn't push her buttons.
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Nope, can't say I've ever been asked if I'm a robot.
First Pure Option to close
in Everything Else
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Absolutely. Contracts are adjusted, tweaked, renegotiated and rewritten routinely. Better to have something in writing ASAP, an exchange of funds, and then the details can be worked out and finalized.