Posted by John on June 14, 2000 at 23:56:53:
Are you also sure the repair value is $170,000.00? Other investors are going to check your comps. Donot get discourage though try to sell it for any profit and move on.
John
Need quick help on assigning wholesale deal - Posted by Heather - MI
Posted by Heather - MI on June 14, 2000 at 20:49:36:
I just got my first “wholesale” deal accepted today!! I’m pretty excited. The house is owned by the bank. I going to assign my position to someone that wants to fix it and retail it. Here are the specifics:
3/1.5, 1900 sq. feet in good area
purchase price from bank $122k
FMV after fix up about $170k
Needs about $10k worth of work
Probably try to assign my interest for around $133k and net about $11k on the deal (sound ok? Too high?)
Wrote offer to close in 21 days, all cash offer (not contingent on mortgage)
I’ve got a list of people interested in “handyman specials” from an ad I ran in the newspaper a few months ago. I’m going to call some of these people tomorrow, and maybe run an ad this weekend if I don’t get any takers.
Here’s my question: When I assign my interest to someone, I want to get a deposit from them. Do I have them give me the certified check made out to me personally? Should I have them make it out to the title company that will close the deal so it’s held in escrow until closing? I don’t want them to think I’m going to take off with their money…but then again I don’t want to be screwed if they can’t close. I was going to have them give me a deposit of $5k? I’m giving the bank $1k as a deposit. Sound ok?
Any and all feedback would be greatly appreciated!!
Thanks,
Heather
Re: Need quick help on assigning wholesale deal - Posted by dew
Posted by dew on June 16, 2000 at 13:03:12:
Dn’t agree with Maria. Usually backing to a golf course is an advantage. However, it sometimes depends on the proximity to the tee, or landing area, etc. If the house is getting bombarded on a regular basis with tee shots, then it could be a detriment. Or if people are “in your backyard” constantly, either figuratively or literally, so you can’t enjoy privacy on your patio, etc. it could be not so good.
Follow up - Posted by Heather - MI
Posted by Heather - MI on June 15, 2000 at 07:02:47:
Thanks for the feedback. If worst comes to worst, I can close myself (using a partner who will help me)…but fixers are not my cup of tea.
I think it may be worth more than $170. I’ve got the comps from my Realtor. It backs up to a public golf course, which is nice. All the other homes that have sold on this street that also back up to the golf course have sold in the low $200’s. However, they’re about 10-15 years newer than this house, have about 150-200 more sq ft and have 2.5 baths instead of 1.5. A house with very similar features to my house (but not in the golf course) in the same subdivision sold for $160k within the last year.
Just wanted to see if anyone could help me with how I take a deposit from my assignee. Do I have them make the check payable to me directly? Or to the title company which would hold it in escrow.
Thanks,
Heather
I think you might have paid too much! - Posted by Jonnie W
Posted by Jonnie W on June 14, 2000 at 21:05:52:
Heather.
If this house needs the $10K that you suggested I would think that an investor will only pay you $109,000.00 (Tops) for this house.
We usually figure 70% of the ARV minus the repairs (and I always subtract my profit from that and with a house like this I would want to make at least $10,000.00)
My offer to buy this place from the lending institute would have been in the area of $99,000.00. I would then have no problem flipping to any investor out there! Don’t get over anxious about buying. Be patient especially wiith lending institutes. You have to keep re submitting the offer. Sooner or later they’ll bite.
Just my thoughts, all others welcome to critisize my numbers. I’m open
Johnny
Make the check out to… - Posted by Maria E
Posted by Maria E on June 15, 2000 at 23:18:58:
Heather,
Have them make the check out to the Golf Course!
You’re out of your rock pickin mind if you think livin on a golf course is good.
What turnip truck did you fall off of honey?
Maria E
Re: Follow up - Posted by JohnBoy
Posted by JohnBoy on June 15, 2000 at 09:34:26:
Get all of your assignment fee UP FRONT! Have that money held in an escrow account as NON-REFUNDABLE should your buyer back out for any reason. The ONLY exception of backing out and getting the deposit back should be subject to the investor being able to get clear insureable title to the property. If clear title can be delivered than the investor would lose the deposit if they back out for ANY other reason. This will prevent the investor from being able to hold things up by stalling to your contract expires and going behind your back. Make no exceptions to this condition. If the investor is for real they will close. If they’re not for real they will try making excuses. Don’t fall into that trap. Just my opinion.
If the investor is for real they will know what their cost will be involved and whether this is a deal worth doing when they look at the property and figure out their estimates. They shouldn’t have any problems with placing the money into an escrow account unless they are not for real.