CA out of State

[salsadunes 0]

Im learning about the CA deals and am wanting to know if anyone is having success doing them out of state? Alot of the sellers im coming in contact with in my area dont seem to be responsive to the idea. Could be the way im presenting it. But i have talked with sellers out of state and the response is more accepting. So again can it work with me in another state? And not being there in person what are the drawbacks?

 

Thanks

[MichaelC 160]

These days, anyone with a PC and a telephone can do a CA across the US just as easily as doing one in your own zip code. If you are finding resistance locally there isn't any reason why you can't throw a dart at a map of the US and try elsewhere.

The obvious difference is that you aren't on site and so need to find cooperation from someone local to assist with the showings. Usually that's the homeowner. But I've done out of area deals when the homeowner is also out of the area. In which case we utilized the neighbor to handle the showings. But the logistics of this are easy enough to work out as long as the homeowner is willing to cooperate.

[salsadunes 0]

Michael,

If theres one thing iv learned is "Listen to those who have been there done that" Mentoring all who will listen is greatly appreciated. So your advice is to work all areas and ask owners/ neighbors to help with the onsite details. My concern is how to protect my interest from afar? As long as i am the knowledgeable one in the transaction i feel i am in the mix. This should be enough? What do i need to concern myself with when working with properties/ sellers out of state? My fear is not being on hand.

[MichaelC 160]

Like all things, there are pros and cons. The potential problem with a distant CA is that you don't have the control over the deal as you would if doing a local deal. Still, there are ways to protect yourself to some extent.

Only deal with someone you get a good feel for. Not foolproof, but I have found my instincts are often correct about people.

Be sure the homeowner is clear about how and when you are to be paid. Ideally, you will be the first one paid. Instruct the tenant/buyer to issue payment direct to you via a cashiers check or money order when the option money is being distributed. You don't want to have to chase the homeowner to be paid two weeks later on. That sucks.

[Guest jvmccall]

When it comes to collecting option deposits for out of state deals, consider opening a checking account with some large national bank (like bank of america) and have the t-b go to their local branch and deposit it into your account.

[bwalston 1]

When it comes to collecting option deposits for out of state deals, consider opening a checking account with some large national bank (like bank of america) and have the t-b go to their local branch and deposit it into your account.

You may also want to consider that PayPal is a wonderful thing

[salsadunes 0]

Well, im glad that there are solutions to my concerns. My biggest concern is that the home is not what the seller says it is. Sellers do lie. I want to be sure what im telling my t/b is as accurate as can be. I will ask others in the area for help. Neighbors, realtors owners. Is this a legit concern? If so, id like to hear how you other are handeling this?

 

Salsadunes

[MichaelC 160]

salsadunes, as far as determining the property's value, never take the homeowner's word on it. For them, it's an emotional matter and they see the price as a reflection on themselves. Run the comps, or have someone do it for you.

[randian 0]

You may also want to consider that PayPal is a wonderful thing

It is indeed, until PayPal starts reversing charges because the payor complained (PayPal never investigates, they just take their word for it) or stops allowing you to transfer money out of PayPal. I've seen too many horror stories with PayPal to trust them. I tentatively trust Google Payments or Amazon Payments, but if I hear about them pulling the same stunts PayPal does I'm through.

[bwalston 1]

You may also want to consider that PayPal is a wonderful thing

It is indeed, until PayPal starts reversing charges because the payor complained (PayPal never investigates, they just take their word for it) or stops allowing you to transfer money out of PayPal. I've seen too many horror stories with PayPal to trust them. I tentatively trust Google Payments or Amazon Payments, but if I hear about them pulling the same stunts PayPal does I'm through.

Interesting...three years and I've never had a problem. Sorry you had a bad experience.

[baron14 1]

When it comes to collecting option deposits for out of state deals, consider opening a checking account with some large national bank (like bank of america) and have the t-b go to their local branch and deposit it into your account.

 

 

Hi Joe, how are you!

 

Hey I want to know in doing out of town deals, how do you get the T/Bs to send you a cashier's check or

deposit in your account the option money. Most are leery since we are far away and have not met in person,

only on Internet and the phone. There are a lot of news stories on TV about real estate scams especially

on Craigslist.

 

It seems that you are doing this without a title/escrow company to seal the deal. So do you have the

T/B sign the agreement then mail it to you with the option money and you in turn sign the L/O and mail

back to the T/B?

 

Thanks,

baron

[dionwisn 0]

Baron,

I still haven't been able to close a long distance deal. I have done ones that are a few hours away. Another option would be to set up a paypal account and transfer the funds. Or you have friends in that area to collect the check for you.

 

As for the contracts, what I do If I feel leary I'll send them wrong contracts just to feel their response. Then once I receive the funds I call them and say "I think we mailed you the wrong agreements heres the correct ones" and move on. Remember this business is a game and you have to play it smart.

[MichaelC 160]

Baron, there are pros and cons to these long distance deals. The big advantage is that it expands your marketplace greatly. We are no longer limited to doing deals in our immediate areas. But the potential downside is that you are giving up some control in these deals, and that opens the door to getting screwed by someone who turns greedy, even though you have lived up to your end of the deal.

There is no 100% foolproof way to guarantee you will get your due. Work with homeowners you get a good feel for, someone you trust, if that is possible.

I have an account set up where anyone can make a deposit at any local branch as long as there is one that is convenient for them. That helps. If you can have the t/b make the check payable to you rather than the homeowner, that helps, too.

[baron14 1]

Baron,

I still haven't been able to close a long distance deal. I have done ones that are a few hours away. Another option would be to set up a paypal account and transfer the funds. Or you have friends in that area to collect the check for you.

 

As for the contracts, what I do If I feel leary I'll send them wrong contracts just to feel their response. Then once I receive the funds I call them and say "I think we mailed you the wrong agreements heres the correct ones" and move on. Remember this business is a game and you have to play it smart.

 

Hi D-Lee,

 

So I guess one would get the homeowner to vouch for you to the T/B telling the T/B that you a a "real person".

Then you first sign the contract and mail to the T/B. You said "wrong" contract. Would you send a contract such as one with important missing clauses or something??

 

Would you just sign and send the Lease Agreement only? Then when you received the cashier's check or M.O. in your name, then send the signed Option Agreement to the T/B? Then assign to the homeowner?

 

Thanks, baron

[baron14 1]

What About this??

 

1.) Have T/B sign and have notarized a Promissory note to me for $XXXX, upon receipt of the contracts. Once I receive the promissory note. I send contracts to T/B. T/B will send option money when he receives the signed lease and option agreement from me.

 

2.) Have some sort of a "general terms" short offer signed agreement sent to T/B. Once I receive the option money from T/B, then send the complete "real" signed contracts to the T/B.

 

Would #1 or #2 make any sense and work? Any thoughts?

 

Thanks,

baron