Posted by Cristy on January 26, 2000 at 20:36:54:
Thanks for all the info, I feel a lot more comfortable now and I’ll keep you posted.
Need Help on a quick flip - Posted by Cristy
Posted by Cristy on January 26, 2000 at 15:51:00:
I have just found a great opportunity (I think!) It’s a 3/3 2 story house and the seller is desperate. He’s asking $162K and the appraised value is $200K.
My question is this: How can I flip this property without putting any of my money into it? I’m obviously a newbie and would appreciate some suggestions. I’m meeting with the seller tomorrow and I need to be prepared.
Thanks
Re: Need Help on a quick flip - Posted by Kaye
Posted by Kaye on January 27, 2000 at 24:28:31:
Hi Cristy,
How are you doing? Fine I hope. Cristy I was reading postings from the News group from creonline and I came across your posting on quick flipping properties. I notice that you are a newbie to this and just started out. Well just like you I am trying to start out. I too could use some help from you if it’s possible. I would like to know how do you start out? Where do you begin? What do I look for? And how would I go about fixing up the property without taking money out of my pocket that I don’t have to give away? I just want to buy the property(distressed property or somone who is in a hurry to get their property off their hands)fix it up using contractors and find a real estate agent to help me get it on the market to sell and then receive the money at closing. Oh, by the way I live in Chicago, Illinois. Cristy,thank you for your help and your response. Any advice would be greatly appreciated.
Trying to Start Out,
Kaye
Re: Need Help on a quick flip - Posted by JohnWe (NoCA)
Posted by JohnWe (NoCA) on January 26, 2000 at 18:59:13:
Try to get it under contract for as little as possible. Make sure the buyer is you and / or assigns, and if you’re using a standard contract, cross out the non-assignment clause. Try to set an escrow closing date for as far out in the future as possible. Also make sure you have a weasel clause in there somewhere to make sure you can back out if you need to (i.e. subject to partner’s approval).
Then go looking for your investor. To flip, simply assign your contract to your investor for $XXX.
If you can get it under contract, let me know and I’ll help you through the rest. It’s really quite simple.
What area are you in?
Re: Need Help on a quick flip - Posted by Cristy
Posted by Cristy on January 27, 2000 at 12:50:33:
Kaye,
I just recently got into investing and I’m learning a great deal from this site. I started with the Carelton Sheets program and it has taught me a lot. It taught me the basics on how to get started and what to look for. This site though gives you tons of information for free!
You first need to find flexible sellers, those that are willing to owner finance, lease option,
etc. Then start calling and making appointments. I’m very excited about this flipping deal
because I can potentially make $5k or more if I work it right and this is my first deal!! I’m
also working on a few others but this is the biggest.
Good Luck and read all that you can
Re: Need Help on a quick flip - Posted by Cristy
Posted by Cristy on January 26, 2000 at 19:29:35:
John,
Thanks for your response. This is my first offer and I’m a bit nervous. Now, I’m not completely clear on the whole process. Once I have a contract with the seller, how do I assign it to the investor and would the closing be simultaneous?
Thanks again!!
Re: Need Help on a quick flip - Posted by JohnWe (NoCA)
Posted by JohnWe (NoCA) on January 26, 2000 at 20:13:14:
Okay, it’s not that hard, but here’s a couple of things to keep in mind.
o Make sure your appraisal of the house is based on comparative sales. Nothing else really matters. Check www.octitle.com if you haven’t already.
o It would be good to have a “Pro-Buyer” contract. Hopefully you’ve been through some kind of course or something, so you have the concepts. If not, don’t worry, you’ll do fine with a standard contract, but understand that these contracts are written to protect real estate agents. Regardless, the most important thing at this point in the contract is the and/or assigns, cross out the non-assignment clause, low earnest money, and weasel clause (Hope I didn’t forget anything). All this becomes easier if you have a custom Pro-Buyer contract.
o To flip it to the investor, you need an Assignemt of Agreement form. Check out www.legalwiz.com under FREE Stuff - Legal Forms. The form you want is Assignment of Purchase Contract.
The closing isn’t really simultaneous because you’re not buying and selling at the same time. In this instance, you’re simply assigning your contract to an investor.
Which brings up a good point. While you’re looking for your investor, I would be looking for a buyer at the same time. If a buyer comes along before an investor, then you have a big payday (and that would be a simultaneous close). This will also motivate investors to act quickly before the deal is gone.
And one more subtle point while we’re talking about double closes. Make sure your title company knows how to handle this, before committing the transaction to them. Some will tell you, “It’s not possible”, or “That’s Illegal”. If you hear that, find another title company.
Please let me know how it goes.
Good luck.