Posted by Robert (NC) on January 31, 2002 at 21:08:29:
Mark,
I’d get some solid COMPS before proceding… However, this does sound like a good subject 2 canidate, but I’m not a subject 2 expert…
Need to protect best you can from the due on sale clause…I’m sure some of the more experience folks will give you some better advice…
Oh and GOod job on getting started… and running the ad…
Happy Investing…
Robert
Need some Heads Up Quick!!! - Posted by Mark
Posted by Mark on January 31, 2002 at 20:56:01:
Hey folks, well my ad started today
WE BUY HOUSES
TAKE OVER PAYMENTS
CLOSE QUICK CALL
I got a call from a lady that said she had one for me. Well, I called her, and she explained that she needed to move. I ran through my pre-qualify list, and found out her monthly $$, she wasn’t sure of her balance. Said it was appraised at $106k last year when she bought it. She paid $84k (She thinks) Well, since it is my first deal, I swallowed hard and asked her how much she needed. She said she just wanted out of the payment that’s it. Well, it is true I have not seen it, but would it be the best decision to go ahead and get the deedm then proceed from there? I plan to place the property in a land trust to protect the interests, but have no time to find a realtor to run a comp. I found a site on Yahoo that list sales prices in that neighborhood for the last yeaar, and they range from $88k to $115K. SO I guess I just wanted to see if anyone had a web address to check comps without going trough a realtor. I am meeting her tomorrow, she wants to move. If the house is in good shape I am going to get the deed, and the payment is $800 per month. Any suggestions? Thanks in advance…M
Re: Need some Heads Up Quick!!! - Posted by BobbyGA
Posted by BobbyGA on February 01, 2002 at 19:54:03:
Try www.domania.com.
Re: Need some Heads Up Quick!!! - Posted by Dee-Texas
Posted by Dee-Texas on February 01, 2002 at 07:24:31:
Sign it up with an addendum about inspection. THEN do as jack says and pay for a verbal appraisial. I do the same and the same with the title company on liens on the property.
IF this seller has refi’ed in the last two years…usually the mortgage company is WAY high over TRUE comps for the area. Then there is always the two to five year penalty for resell with some of the mortgage companys.
If everything checks out, congrats!
Dee-Texas
Re: Need some Heads Up Quick!!! - Posted by jack
Posted by jack on January 31, 2002 at 23:54:33:
Spend $150 for an appraisal and ask the appraiser to give you a verbal in 24 hours, I get it all the time in the refi biz.
Re: Need some Heads Up Quick!!! - Posted by JimFL
Posted by JimFL on January 31, 2002 at 22:04:55:
Mark,
As was already said to you, there is some due diligence you need to complete.
I’d be right up front with the seller and tell them you need to verify some things before going totally ahead.
But, in the mean time, you can offer her a sub2 deal, sign a purchase agreement with her, including a clause that the closing is contingent on you verifying all information regarding the house, to your satisfaction.
This way the house is at least tied up.
Get comps, this is important.
Since Yahoo gave you such a wide range, you know this is not too accurate.
Try contacting a local title company and if they won’t comp it for you, try some local RE agents.
Tell them you will be buying this house, and may later need to list it, therefore getting some comps will help you.
If you cannot find someone to give you comps, then go ahead and gather some from Yahoo, and then drive them.
See which ones most closely resemble the house you are looking at, and get them that way.
Not the most accurate, but a ballpark smaller than $88k to $115k.
Get the seller to sign a loan authorization form and find out about the loan status, payments, balance etc.
Check the title, get a title search at the minimum.
Once you get good comps on price, get some numbers for market rent.
You may also want to check out the area and see what other homes are doing.
Are they selling fast?
Is this a house you can sell quickly?
What are your plans with this house?
You should know your exit before you buy.
If all the numbers check out, and you are satisfied with your due diligence, then go ahead and sign her up.
Try to get the seller to cover as many payments as possible after you take possession.
Then market the house like mad.
One other thing I neglected to mention “Yet”, check out repairs, and the status of all major features in the house, like heat, A/C, roof, plumbing, electrical etc.
Are they in good shape?
do they all work?
Will they need anything any time soon?
You can get all this done in a matter of days.
Again, if all looks good, then sign it up, and then market the house hard for sale.
Offer terms, or a L/O, and it should move fairly quick, as long as you get the word out that it is for sale.
Good luck,
Jim FL
Re: Need some Heads Up Quick!!! - Posted by Jeremy (Ab)
Posted by Jeremy (Ab) on January 31, 2002 at 21:26:54:
Why not put a clause in the contract, that the deal is pending your lawyers approval? No lawyer in the country would approve a deal, if you as the buyer don’t feel comfortable with it! That will give you a chance to do comps (providing you aren’t putting the closing date to soon).
My thoughts anyhow.
Jeremy
Re: Need some Heads Up Quick!!! - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on January 31, 2002 at 21:19:34:
Mark-------------
I can not imagine buying a property without either knowing values in the area, getting comps, or both.
However, if does look good, I agree with you. Get it tied up with a contract. Not a deed yet. Then do your due dilligence.
Do not consider any sellers “appraised price” as anything other than hot air. You have to know values or have good comps yourself.
You might try realtor.com and put in the zip code for the property. This will only have properties currently on the market, not the already solds you really want, but it will give you an upper limit estimate of the market value.
You do not indicate where you are located. Here in the West, title companies gladly provide comparable information for free. Not in the midwest. Don’t know other parts of the country.
Good Going.
Good InvestingRon Starr***