Re: Looking at a SFR tomorrow - Posted by Stacy (AZ)
Posted by Stacy (AZ) on April 20, 2000 at 01:39:30:
Sorry I didn’t respond to your email about this property. In my spare time I’ve been dealing with loss mitigation departments, sellers, my title guy, and my mortgage broker trying to stop a foreclosure.
Anyway, great advice below, and a possible great first deal for you. Anything that rents for $400 per month and sells for $15K is reason to get out there and see it ASAP. A couple of words…
I’ve bought every property in the past three years with $100 earnest money. Also, I’d make the contract contingent on my subsequent inspection and approval, in writing, within 15 days from the signing of the contract. Make the closing date 30 to 45 days in in the future. Then, market like heck to possible investors for a flip (I say this since I know you’re focussing on flips for now).
Also, make sure the earnest money is the sole remedy for specific performance if your have to bail-out of the contract, although, if your numbers are correct, I don’t think you’ll have any problem.
Also, don’t give any earnest money to the sellers. Instead, your contract should state that upon signing of the contract by all parties, you will pay the earnest money to a title representative (or closing lawyer) of your choice.
Also, don’t fall in love. I know it may be hard when you think you’ve got a good one, but try to evaluate with a level head when you see the inside of the house, just to be sure your numbers are correct.
I think you may have found your first one…