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.
Real Estate Investor
St. Louis, Missouri