wannabe

WOW! This is great! stuff guy's. Do you guy's realize that most guru's charge big$$$ for this. Seiously, All of you have made good points, and given me a lot to practice and consider. CRAP! and I thought I was gettintg the hang of it And then all you pro's make me realize just how inexperianced I am Thanks to you all and keep the education coming Jeff

Great! I'll pay you 20% of FMV Can we close tomarrow!

I mainly try to do CA's and wholesale flip's now. My goal is to maximize my deal volume or better yet profit, by turning some of those deals that have high equity and do not work for a CA into a flip using the pure option. Thanks Steve, now that I think about it, I guess that MC's LO script could work for flips as well! How about this? I own a real estate consulting company. We specialize in locating homes for people who have the ability to pay cash and close quickly. The problem we allways seem to be faced with is that we have more buyers than we do homes to offer them. Many of our buyers are interested in homes in this area, we are trying to fill a need, and thats the reason for my call today. Here is how I'm going to get your house sold. First I will need you to grant me a 30 day option to purchase your house at the price that we settled on, and give me access to show the house to my buyers. I have one in mind that I will show it to first and I believe that he will take it. If he agrees to buy I will then assign my option to him; he will then contact you, set up a closing and buy your house. How is this? Jeff

I would like to get some feedback from you guys on this script. I'm sure it needs to be tweaked or competely rewritten? I'll be using this after I have negotiated a price that I can work with. Pease let me know what you think. "Mr seller, I'm sure that I can help you with your situation. I'd like to tell you a little about who I am and what I do. I'm what is known in the real estate business as a "bird dog" I network with home buyers who have the ability to pay cash and close quickly. and are particularly intersted in homes just like yours in this area. After looking at your house and considering the location and condition, I'm sure that one of my buyers will want to purchase it. Here is how I'm going to get your house sold. First I will need you to grant me a 30 day option to purchase your house at the price that we settled on, and give me access to show the house to my buyers. I have one in mind that I will show it to first and I believe that he will take it. If he agrees to buy I will then assign my option to him; he will then contact you, set up a closing and buy your house."

Thanks MC and Steve. No where else can a guy get an education worth a fortune in the REI business; AND ITS FREE! Jeff

Yes, that should work. However my buyer will want something on paper to assure that the deal will be there before he pays me for assignment (I don't believe that a "non exclusive option will accomplish that). Do I go back and get another "exclusive" option with the seller? How do I get the deal sealed for my cash buyer? If possible I want to get paid before closing escrow, as it can be difficult to find attorney's here that will do ANYTHING that resembles a double closing.

Good point Steve! Sure, i'm willing to assign to anyone who will pay. My thinking on that was that if I let them know that I market only to investors, this would further distinguish me from realtors. I guess maybe it's better to be compared to a realtor than an investor? HMMM which is the lesser of the 2 evils?

I have considered using the "non exclusive clause" as an incentive. However I will be assigning the deal to an ivestor/buyer; I don't think anyone will want to pay for an option on a property that could be sold before they can close. How would this be handled?

Thanks MC. Actually this is the second deal I lost by disclosing that I planned to assign it to another investor. The Idea of anything creative seems to scare the begeebees out of them. The script that I have been using is "Mr seller I work with a network of investors and this is exactely the type properties that they are looking for. I believe that I can help you with your situation, and make a few bucks for myself at the same time. If you would grant me a 30 day option to purchase on this property I'm sure that one of them will be interested and I will assign my option to him. He will then set up a closing and buy your property". At this point I usually get "Well I'm not interested in anything like that. I have already had it listed with a realtor and I dont want to keep making mortgage payments while you look for a buyer" or something to that effect. I even had one guy tell me that he would just turn the house over to the bank rather than do this. I realize that some are just not motivated enough; but When a seller tells you that he would rather go through forclosure than deal with you, your obviously doing something wrong. I feel that I'm missing deals that could be done. I know that there must be a way to explain what I plan to do that doesn't scare them. I need professional advice here! Thanks Jeff

I am new to fliping houses without first owning. I have a couple questions. 1) Which is the better agreement to use, assignable purchase contract or Option to purchase contract? 2) This one has already lost a deal for me due to my inexperiance. Do you guys let the seller know that you plan to assign the deal to someone else? I did and it scared the selller out of signing. He says i'm just an "unlicensed agent" However if you do not let them know that the end buyer will not be you, then how do you explain yourself when you start asking to show the house to other investors? How do you pros handle this? Thanks Jeff

I hear alot of talk about investors using "Land Trust" to protect their position in the business of flipping wholesale properties. It sounds like this could also scare an uneducated seller, since it involves title; also sounds like a rather complicated process. What are your thoughts on this? Does anyone have experiance using this method? Merry Christmas To All! :xbiggrin: Jeff

Thanks MC. I certainly understand how this form could spook a seller. I hear alot of talk about investors using "Land Trust" to protect their position in the business of flipping wholesale properties. It sounds like this could also scare an uneducated seller, since it involves title; also sounds like a rather complicated process. What are your thoughts on this? Does anyone have experiance using this method? Jeff

Im wondering if the "performance mortgage to secure option to purchase" should be used in conjuction with the option to purchase when doing either a pure option or L/O? Or what exactely should this form be used for? I'm not very sharp on leagal contracts but I read through the form and from what I gather, it simply re enforces the option to purchase and guarentees that the seller will deliver clear title when the option is exersized. Am I correct? Thanks to all :xbiggrin: Jeff

I found a seller who is moving out of town. They are not interested in a CA or LO because they will be moving to another state and want to sell outright. The comps on this home range between $429,000 to $505,000. I believe the true MV will fall on the high end. They currently have the home listed with a realtor for $499,000 I asked if they would be willing to grant a 90 option to buy at $428,000 they declined however 2 weeks later they contacted me, and agreed that they would sell for $428,000 and wanted the details on the 90 day option. I gave them the details and they are now reviewing the pure option agreement. Now, my delima is, if I get the option, how do I market this thing? It's no big deal to sell an option on a whosale $100,000 house in this area; however a $500,000 house is a different animal. I am considering selling it at auction, but I believe the auction companies require a fairly large marketing fee upfront. Does anyone have experiance selling property at auction? Since this is my first experiance with this type of deal, I just wanted to throw this out and see what kind of suggestions I get from you guy's. Thanks Jeff

I think you guys are probobly right. However The ball is already rolling I signed a NCA agreement with the potetial buyer today. If the deal happens I should take home around $75.000; Not bad for a weeks work! However if it falls through. I will certainly take the option approach and will no doubt be back here for more advice. Thanks to all Jeff