Re comps/another comp - Posted by MilNC
Posted by MilNC on December 17, 1998 at 12:19:38:
This is a comment and question: I think what was on one
of the tapes, that I think you have is, once you have
located a possible property, call the owner (you’ve already got that info) ask what they want for it as is, ask how they
arrived at the price, offer them somthing lower,
get option to purchase, record memorandum of option. Now you are protected-you can have the rehabbers drive by and let them figure out it’s worth it to them. You can have it appraised/inspected with owner’s permission or whatever contingency clause seems appropriate, (but this is as is) Give yourself enough time (have the buyers ready), and the buyer doesn’t kneed to know when your option expires, then flip it with a simultaneous close.
You are out your option money if your buyers aren’t
interested in time.
I think your next step is to call I Buy Houses ads
and findout out what they are looking for, develop your buyers list and have them waiting in the wings, then call your prospective sellers and start with the most motivated ones.
Meanwhile be calling around to find a title company or
whatever entity does this in your area, and find one
that will do a simultaneous close.
I think I’m missing a step, like whether you make your option contingent on your approval of the appraisal in this case.
I’m getting the impression that in a situation where
you are going to flip quick you are not looking for
a long term option and you are not worried what it is
going to rent for. This is not a case where you are
going to maintain the property or make payments,
although you could, esp for out of town landlord for short time (I think the options could be 15 days or so.
Yo do all the normal title things, too, as described
in the course.
Well, that’s my scenario for what you have.
I’m still learning --I’m sure someone else can fill
in the blanks. I might have misinterpretted something, so that is my disclaimer!