Posted by Sharon Jones on September 14, 2003 at 14:44:19:
Honestly before you even meet with a realtor you need to know what your ?gameplan? is and how you will get the property financed if your low-ball offer is accepted by a seller.
Simply tell the realtor that you?re looking for motivated sellers and you buy fix-uppers at a steep discount for all cash, and have the ability to close quickly within 30 days if the property meet your criteria. You finance properties a number of ways by obtaining funds from your business partners and hard money lenders. Also have realtor check the expired listings from the MLS and make offers on those as well.
The realtor might ask you for a ?proof of funds? to make sure you will be able to get financing and will not be wasting his/her time with you. If you don?t have one of these in your possession when you meet with realtor tomorrow, think of an excuse like: I?m sorry, but I forgot to bring one with me. However, when I get back to my office I will fax you a copy of my ?proof of funds? letter. Then try to network with other investors, mortgage brokers and/or hard money lenders that will give you a ?proof of funds? letter. Also it?s important that you become a member of your local real estate investment club.
Agent will probably suggest that you submit earnest money along with your offers. Simply have it stated somewhere in the purchase contract as a contingency clause that earnest money will not be submitted until offer is accepted by the seller. This will give you time to check your ?buyer list? and get the earnest money from ones of your buyers you plan to assign the contract to?
Always have a backup buyer just in case the first buyer turns out to be a flake. It?s very important that you step in and close the deal if you have to because your reputation is at stake, and you don?t want your name to be slandered around town by real estate agents saying not to deal with you because you ?re a recent Carleton Sheets graduate wannabe!!
Also make sure your buyers verify with you that they have funds to close deals. Even if they have to show you their bank statement. Get enough earnest money deposit from them and enough to cover your assignment fee.
Good Luck
Sharon Jones
Real Estate Investor
St. Louis, Missouri
How do I find a private lender/investor? - Posted by Frank A
Posted by Frank A on September 11, 2003 at 23:16:57:
Hello and thank you for taking the time to read this and possibly help me.
I have gone through about 35 delinquent tax properties and finally found one that I feel has a great ROI potential. I lost out on this property about a month ago because my bid was too low but the guy who had the accepted bid, couldn’t get financing so it went on the market again. In my second attempt to secure the property, I was happy to have had my bid accepted. Woooooohooooo! Now for the hard part.
The property was successfully bidded for at about $10,200 and needs about $8-$10,000 in corrective codes and upgrades to make it livable again.
The ROI is between $20-40,000. Properties in the area comp out at arounf $54K-60K.
I would like to find a private lender/investor who would front the securing funds as well as the rehab funds. I would do most of the rehab work or sub-contract it out and then resell the property in a neighborhood that is on the upswing and real estate is hot within 60-90 days from closing. I would like to split the profits with this private lander/investor. He/she would get their initial money back plus between $10-$20,000 depending on the ROI.
I could take my share and begin the process all over again.
How do I go about finding such a person to help me??
Re: How do I find a private lender/investor? - Posted by MALICE MATAN
Posted by MALICE MATAN on October 11, 2003 at 15:50:16:
i need to find a private lender whose might be able to have access to IRA money and some other funds.
i am starting a investment business on real estate so
i need to find a lender to work with.
I am just getting into this. I have a realestate agent that I will see on monday 13 September 2003. I have not done anything so far. My realestate agent asked me how I am going to finance this endevor. I really do not know what to tell him. Can someone help