Posted by Lisa on April 25, 2002 at 07:19:27:
Did the seller on the home carry? If so how much could you give me all the details so I can learn?
Thanks
Best Method Against Fear of Signing??? - Posted by JS
Posted by JS on April 24, 2002 at 17:49:55:
Since most of us started investing because of our lack of money, what method is best to protect yourself after you’ve found a motivated seller, you sign a contract to purchase his house, but you CAN’T afford to even make 1 of his payments, and you only have 30-60 days to find a suitable sub tenant or buyer and the clock is ticking down?
How do you handle the situation IF for some reason you don’t find a buyer? Has anyone else had these fears? How do you deal with it?..Thanks!
Re: Best Method Against Fear of Signing??? - Posted by Mike Daly (GA)
Posted by Mike Daly (GA) on April 25, 2002 at 07:10:40:
Your fear is completely justified – you SHOULDN’T sign if you can’t make the payments without a T/B. Like Mike WA said, you need to make your offer contigent on finding a T/B. The only other way to do it would be to bring a partner with the sufficient funds to make the payments if you don’t find a T/B in 60 days.
Re: Best Method Against Fear of Signing??? - Posted by Mike WA
Posted by Mike WA on April 24, 2002 at 18:19:47:
Put in the Purchase & Sale Agreement that they are goint to “pay the next 3 month mortgage payments, or until tenant/buyer is secured,” - “just as they would have if they listed with an agent.” If they ask, “What if it takes forever for you to get a t/b?” Tell them that you’re a marketing expert and that you should get one in there in no time. Since 65% of the general public doesn’t qualify for a conventional loan, with most being self employed families, you would have a greater pool of potential buyers.
Hope this helps…
Re: Best Method Against Fear of Signing??? - Posted by jeff
Posted by jeff on April 24, 2002 at 17:59:56:
if your that afraid of it, just add a few weasel clauses, i dont liek them, but hey, you gotta be you (no offense). add clauses like, financing, inspection, parnership approval and a few others you can find. but the best thing in this situation is to have a buyer found before you sign anything, assuming you keep buyer and seller apart on the matter and the seller doesnt undercut you.
heres a deal i got working now, in a jist, seller has a 45,000 appriased home no the market at 42,000. i have gotten him rooted down to 38,000 (yeah i know, it aint much of a pay-off, but if the buyer is in place before i egt it, its quick cash). buiyers wuill buy it at 45,000 since im doing the financing for them and they have a hard time getting loans on their own (they were approved but had very little down money). theres a quick 7 grand for me at closing by flippnig it retail. this can only be done by acquiring bueyrs before signing papers. id never take a deal this skinny unless i had the money up front.
try this and see if it works for you better on the skinny deals or the no money down deals.