Posted by Scot on November 30, 1999 at 16:19:00:
Raymond,
The way that we found the Fannie Mae foreclosure was thru a realtor in our area that handles all Fannie Mae forclosures. You can also go to www.fanniemae.com, but some of these listings are outdated. Also try a buyers broker. Good Investing!
Scot
Help on deal structure. - Posted by Scot
Posted by Scot on November 29, 1999 at 23:42:22:
Scott,
I just wanted to say thanks for the good ideas on this website. We purchased a Fannie Mae foreclosure in August to rehab and sell at retail. We just spoke with a couple who gave us a verbal agreement to purchase it. Our profits will be a little over $26,000.
I would like to ask if our deal structure is sound. The Buyer is going to give us a large down payment as earnest money (were are not sure how much), but he wants to close at the end of March. Over the four months he will cover our holding costs. In March the buyer will cash in his CD’s and close with cash.
We plan on using a title company / lawyer to draw up a contract that fits these terms and also have them close the transaction.
Does this sound right? Any suggestions would be greatly appreciated.
Re: Help on deal structure. - Posted by Bud Branstetter
Posted by Bud Branstetter on November 30, 1999 at 12:05:01:
Depending on your state foreclosure laws you may or may not want them on title. Obviously the more down or option consideration there is the safer you would feel. But you really don’t have to worry. Anyone can take a loan against CD’s. The banks usually charge 2% over the CD rate to borrow your own money. That means for 1% they can pay you CASH. Are you willing to pay part of that 1% to get cash?
Re: Help on deal structure. - Posted by Bob-Tx
Posted by Bob-Tx on November 30, 1999 at 09:45:50:
The major concern here obviously is that you hold the house off the market only to have the guy fold on you in the stretch. Why not do a Lease Option with a substantial (10%) option consideration - non refundable - and a 6 month option?. The monthly lease amount can be just enought to cover your costs.
my .02
Re: Help on deal structure. - Posted by raymond d modglin
Posted by raymond d modglin on November 30, 1999 at 08:43:07:
Sounds good to me. But, I have a question, im a novice at real estate, where can I get a list of FANNIE MAY foreclosures. Thanks for the help and good luck