Posted by JP on May 31, 2006 at 13:08:24:
Hi Charles,
Could you please elaborate a bit more on the auctioning of real estate?
Do you need any specialized licenses?
Can I do this in NY state?
How low do you need to contract for purchase for the auction method to work?
Thanks!
Flipping properties… - Posted by TK
Posted by TK on May 28, 2006 at 18:02:30:
I want to flip S.F.H.'s, using owner financing instead of L/O’s.
Do cooperative assignment’s …using O/F instead of L/O’s.
Especially for higher end properties where the payments are high and the tax write-off…for the buyer makes the payments more palatable.
I will split the downpayment with the seller. What p/w would I need and is there anything else I should consider???
Re: Flipping properties… - Posted by Frank Chin
Posted by Frank Chin on May 29, 2006 at 07:41:46:
TK:
IF you plan to go into this, you’ll have to KNOW WHY a particular seller is selling. I find its usually because they are selling to buy an even bigger house, or selling to take care of some bills, or selling because they’re just tired of it, and just want cash.
So, if the seller GIVE YOU owner financing, where is money to buy the big house, take case of bills going to come from?? Not you.
Wait for you to find the buyer?? So you say you got buyers waiting??
In this case, a case can be made that you’re illegally “brokering without a license”. Not something that’ll put you in jail, but something would not permit you to profit from, if you’re turned in.
In many areas, where properties are mainly sold thru brokers, it won’t be long that word gets out someones lining buyers, and then matching them with sellers, as you described:
" broker the transaction …in and out(sweet little pun)…wham bam see ya’ mam.
So, just watch what you’re doing. In just about all states, you need to be licensed, working thru a brokerage before you can broker transactions.
Frank Chin
Re: Flipping properties… - Posted by Char;es Parrish
Posted by Char;es Parrish on May 28, 2006 at 20:33:54:
Do your flipping while you are in contract. Forget owner financing or L/O’s; they require too much negotiating and too many misses and not enough hits.
Consider doing Hybrid Offers with sellers.
Make sure you have all necessary disclosures, rights of assingment, delayed settlements and marketing rights.
Wishing you good luck,
Chalres Parrish
Re: Flipping properties… - Posted by TK
Posted by TK on May 29, 2006 at 10:06:52:
I want to do cooperative assignments, using Owner Financing as the vehicle, instead of L/O’s.
I find an owner who wants to sell. We sign an PSA/Land Contract. I then find a buyer and assign the conratct to him.
That’s it, done deal. What p/w do I need? P.S.A. …Land Contract…and Assignment???
Is that it??? What paperwork do I need???///
Re: Flipping properties… - Posted by TK
Posted by TK on May 28, 2006 at 21:40:38:
Thanks for the response. I can find sellers that want to L/O or O/F their properties. All I want to do is find the buyer…negotiate an agreement with said buyer…and assign agreement to the seller, for 50%-100%…of the option deposit or down payment.
What specific forms would I need???
P.S.A. and a Land Contract and an assignment contract??? Is that it??? Thanks…
Re: Flipping properties… - Posted by Charles Parrish
Posted by Charles Parrish on May 28, 2006 at 22:10:04:
What we do here in Baltimore is called “Control & Roll”.
I like the fact that we never go to settlement.
The profits are made quickly without a lot of resposibility to cloase
Charles
Re: Flipping properties… - Posted by TK
Posted by TK on May 28, 2006 at 22:18:15:
Charles, I’m lost in space. What is the , auction marketing method. I’m just trying to execute cooperative assignments.
I want no part of closings and clauses. It’as buyer beware. I broker the transaction …in and out(sweet little pun)…wham bam see ya’ mam.
Are we discussing the same concept.
Cooperative assignment is negotiated L/O and then assignment of cotract. What clauses do I need???
Doesn’t assignment of contract absolve of fure repercussions??? Thanks…
Re: Flipping properties… - Posted by Charles Parrish
Posted by Charles Parrish on May 29, 2006 at 07:30:23:
Lost in space is not a good place to be. The “Auction Method of Marketing” is another way of selling real estate. In the U.S. this year, according to the National Auctioneer Association, $50 Billion in real estate will be sold.
What methods do you have available to you to sell now?
Both of these methods are unpredictable. They are laced with road blocks; approvals for financing, appraisals, underwriters, inspections for lead paint, asbestos, radon, basement & roof.
Buyers need to be approved for the loan and the property needs to be acceptable. When an offer does come in, it is full of contingencies.
The selling public does not want to wait to sell; they want to move on with their lives and do not want that move contingent on selling real estate.
The auction method of marketing is predictable, it is fast, no seller?s commission or settlement costs, properties are sold in as is condition, no contingencies, no needed appraisals and fast settlement.
Some basic clauses needed are; subject to third party assignment, right to market the property, right of possession, delayed settlement, extensions and assignment. Yes, if the deal doses not close as expected, if you contract is written well will absolve you, allow you to ? w a l k !
Charles Parrish
Baltimore Real Estate Auctioneer