Can I do this? - Posted by Kristy-AZ

Posted by Tim Fierro (Tacoma, WA) on July 20, 2002 at 10:15:57:

It’s my birthday, I can take it. :slight_smile:

I get the picture now. Just wanted to make sure.

Can I do this? - Posted by Kristy-AZ

Posted by Kristy-AZ on July 19, 2002 at 03:28:04:

I am an investor in Arizona. Not new to investing, just new to this type of investing. Anyway, I am also a RE Agent. I have written 20 offers to REO’s, Fix up homes and Pre-Foreclosures. I have put my husband down as the buyer, but also disclosed my relationship to him in the contract. I think this is hurting my deals.

My question is, can I put my brother down as the buyer, he has a different last name, then have him quitclaim it to us or assign it to us at closing? Our 9 page contract does not state anywhere that the contract can’t be assigned, which is what we would be doing anyway. Flipping the property to another investor.

Can this be done? I feel the offers would be looked at more seriously, if it looked like I was actually working for a buyer other than my husband, especially by the REO’s.

Any help would be greatly appreciated.

Re: Can I do this? - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on July 19, 2002 at 11:34:40:

Kristy, especially the REO’s, are you offering their full price? If full price and being denied, then that could be the problem, but I don’t think the bank would care. Same with fixers, are they full priced offers and being turned down because of the buyer? I don’t think a seller is going to care who is buying the property if the price is right. Could it be as simple as you are offering a low purchase price, and the seller is just saying no based on price; not who the buyer is?

Do you have any reasons to think that having a related party to the transaction is hurting the deal?

If you really believe that your offers were good offers and should have been accepted, but denied because of a relation of yours being the principal; how would having your brother be any different? You would still put down that selling agent is related to the buyer in the contract offer; or were you going to leave that out? :slight_smile:

Re: Can I do this? - Posted by Kristy

Posted by Kristy on July 20, 2002 at 03:34:29:

I have seen your posts many times and admire your views and advise. So don’t take this post personally, I am just steaming about how some Realtors handle their business.

I have been a Realtor for many years. Before getting into investing, I dealt mostly with Listings, so I know the market values of houses in my area very well. In my searches thru the MLS for Fix ups and REO’s, I have found that Realtors are pricing these homes at FMV. I personally go and look at these homes. I’ll use one as an example.

(This is an REO) When you open the front door your are knocked back 25feet because the cat urine is so strong. Once you can breath again and get thru the door there is animal fecis and urine on the carpet and throughout the house. ALL the appliances have been ripped out, the paint is from another life source, there is mold growing under the sinks,all the light fixtures have been torn out, all the ceiling fans are gone, just wires from the ceilings, we won’t talk about the showers, the pool is half empty, green and breeding mosquitoes and needs replastered, there is a hole the size of a golf cart in the roof, and the pool equiptment has been tampered with! Plus the house has been on the market for over 6 months! Homes in that subdivision sell within 2 weeks!

Now, would you offer FULL asking price on this home, being that it is on the market for what other homes have sold for in gorgeous condition? (not meant to be rude)

But my answer is NO, I am not offering them full price!How would I make any money? I know what the bank paid for it, I know what it’s going to take to rehab it, and obviously so does the bank. (that’s why it’s still a mess and on the market.)

My offers are close to what the bank got it for and sometimes less! Depending on what is wrong with the house. I still can’t figure out why the Realtors are pricing the homes so far up when the houses are in such a disasterous condition.

One offer I submitted listed all the repairs that need to be done, what the highest price comp was for the area, plus I offered to submit photographs to the lender. The Realtor has it priced $15K OVER MARKET! I still haven’t heard back from the agent. My guess is the Realtor won’t submit my offer to the lender. And later I will be told the lender rejected the offer. I plan on calling the lender next week to see if my offer was presented.

This is a common scenerio for most of the homes I am making offers on. If I get them I will either wholesale it to another investor or rehab it myself and self it.

Sorry this is so long. I just had to get that out!!! It’s been a long week!.. :frowning: