Posted by Joe on March 22, 2006 at 10:16:23:
Wow, you wholesaled 5 deals and didn’t get a dime? What did the investor have to say for himself? I would have been on his case 24/7 to give me my money.
flipping and selling contract - Posted by anthony gray
Posted by anthony gray on March 21, 2006 at 22:43:34:
Hi my question is this. I live in akron ohio and i see a lot of rundown and boarded house here, some of them are in close
up by the city for drug. and some are just their I want to target all of these and need some input on the one the city
boarded up, can you give me information what and who to talk
to about these and the best way to write up a contract to sell my position on these?
Re: flipping and selling contract - Posted by Rob TN
Posted by Rob TN on March 21, 2006 at 23:56:08:
Wow, sounds great!
I’d definitely talk to city and county code enforcement to find out what the policy is. Where I am, code enforcement has some contact information and sometimes a list of reasons why the place is condemned (they are condemned, aren?t they?). If not condemned, confirm that they?re not condemned before proceeding.
You need to make sure that they aren?t on the bulldozer list because if you buy it, then it gets bulldozed, you?re out of luck. If they are on the list, and you wind up buying it, you need to make sure that you talk to code enforcement before you close (to get it taken off the list, if possible).
Also, here if you go after a condemned building, you have to get a ?build back letter? from code enforcement which allows you to build it back (or remodel/rehab). You need to find out about the build back letter before you buy the place because if you can?t get a build back letter, you can?t rehab the property and you?re stuck.
Also, find out what government programs might be available to you for revitalizing run down properties in your area. Maybe some tax credits and or grants too.
Shoot, if you buy up and rehab a street at a time, and make them nice and cute houses, you may start a revitalization of the area. That?s what is happening here.
Oh yeah, you should be able to get those places for really cheap, don?t underestimate the cost of the rehab and holding and insurance costs.
Contract wise, you’ll probably have to buy them as is. Just make sure you get title insurance and don’t put more than a few bucks down as earnest money (i.e. $10). Make sure that you’re buying from someone with the legal right to sell.
Use a Lawyer to help you get your papers in order (contracts, etc.)
Good luck!
Rob
Re: flipping and selling contract - Posted by anthony gray
Posted by anthony gray on March 22, 2006 at 24:15:04:
THANK YOU ROB!!! this the information i have been waiting for this will get me started you see i did use to birddog for this one investor but he never paid me
i got him 5 deal in one month so i said forget him and do this on my own this website is a great place to get info and help am glad i found it and got a lot of feedback i needed to help me thank you very much rob
Re: flipping and selling contract - Posted by Rob TN
Posted by Rob TN on March 22, 2006 at 19:15:46:
You’re welcome, glad I could help.
In the future, when you get a place under contract and you’re afraid that the seller may become dishonorable, change their mind and sell to someone else or there’s a scheister that may try to steal your deal, you can execute an AFFIDAVIT AND MEMORANDUM OF PURCHASE AND SALE AGREEMENT or a NOTICE OF PURCHASE AND SALE AGREEMENT. These are documents that you can fill out and sign and have notarized. Then, you take them down and have them recorded against the property. What it does is ‘clouds the title’ by letting the world know that you have a properly executed purchase and sale agreement on the property and gives your contact information, not the specifics of your deal. In the event someone tries to buy it out from under you, during the title search, your document will come up and you will be notified. Then, you can take it from there and you have many options. As for the actual legal ramifications of such documents, ask a local attorney. Also, be prepared to advise the clerk at the Register Recorders Office how and where to record it. It?s a one pager and costs about $10 bucks to record.
Remember to be nice and honorable. If the seller did the deal in the heat of passion and now they have reconsidered, treat them as you would wish to be treated. Though it may not seem like it right now, there are tons of deals out there and what comes around goes around, so remember the golden rule, ?Treat others the way you wish to be treated?. Don?t use these documents to be a heartless, greedy jerk. I believe in RE Investor?s Karma.
I’ve only recorded one of these once when the seller was being difficult and squirley after we had a mutually beneficial deal. We had a good deal and she seemed she wanted to continuously try to sell it for more and quicker and not take care of termites and such (as agreed to in our contract). As it turns out, they were eager to unload the property because it had several hidden problems (which I discovered during the rehab).
Good luck and happy investing!
Rob