FAQ: Answers To The Most Asked Questions - Start Here

Just got your next PM with the additional info. If you are assigning this property, have the buyer pay the earnest money upon acceptance of the assignment. (Your PA can say "EM due within 7 days of acceptance). I would suggest collecting your assignment fee at this time as well.
Once you assign it, he has accepted all responsibility of fulfilling the terms of the purchase agreement.
If he does not take the assignment and YOU cannot get financing, you can back out of the contract with that escape clause. You probably want to use at least one other contingency in your purchase agreement as well, especially "inspection". Since you are with the Success Academy, make sure you go through the training session on contingencies. There are many more you can use to protect yourself.
Good luck on this. Keep pursuing the less expensive ones you have a list of buyers for as well.

Rina

I have considered making several offers in the last couple of weeks, but the realtors I have talked to say I have to have proof of funds to make an offer. I've watched several properties sell for around what I would have offered, so I know I'm on the right track. Is that local real estate agency policy or it is this some new national policy for realtors? Am I pursuing the wrong avenue for finding properties? Should I not go the realtor route? I would like to use a realtor, but proof of funds just won't be happening for me anytime soon. I intend to assign the properties I get contracts on for the near future. Looks like I can't get there from here. Any suggestions? I know there's a solution. Help, please.

StudentScott, thankyou for answering my question and giving me the site to read up on. again thanks. James

WHEN REFINANCING WILL THE LENDER LOOK DEEP INTO MY CREDIT SCORES? I HAVE A PROPERTY THAT TITLE IS BEING TRANSFERED TO ME (FREE AND CLEAR) AND MY SCORES ARE NOT THE GREATEST.

HOW CAN I GET A GOOD DEAL?

WHEN REFINANCING WILL THE LENDER LOOK DEEP INTO MY CREDIT SCORES? I HAVE A PROPERTY THAT TITLE IS BEING TRANSFERED TO ME (FREE AND CLEAR) AND MY SCORES ARE NOT THE GREATEST.

HOW CAN I GET A GOOD DEAL?

I've been told you can get cash at closing to fix the property you are buying up. How can this be done and what steps do you have to take?

I am a 26 year old male who has had one of the roughest lives of anyone I know. I would go into detail but I am trying to re-train myself to not let it be an excuse anymore. I have been through countless jobs in my life (about thirty since I was 14), everything from pizza delivery, to fast food, to construction, to grocery, to waiting tables, to bartending to running online gambling depots just to make a dollar. In my life I have nothing to show for all of my hard work. I have a repossession of a car on my credit and a whole bunch of unpaid doctor's bills. I have college loans that I have only made a few payments on in 7 years. Point is, I HAVE THE WORST CREDIT IMAGINABLE! I have bought and read Dean's books, Be a Real Estate Millionaire and Profit From Real Estate Right Now. I was so excited and believed in them so much that I read both books in a mere two weeks. I thoroughly believe that I can do this, I just have no idea on how to start. I've looked at properties in my area but I have no car of my own at present. I know that the real estate market in my area is at rock bottom, and I know that with just a little guidance I can do this thing and knock it out of the park because I'm young, passionate, and I am a great people person. I am looking at a house right now that is right up the road from me, it is a FSBO, and the owner is from out of town. It is a brick home with a garage and the asking price is $155 K. The appliances are included and I know in my heart that he is a motivated seller and this could be a gem if I just knew exactly what to say. I know I could have only one shot and I don't want to mess it up by saying the wrong thing. I haven't gathered the courage to call him yet. Any help that anyone can be would be so graciously appreciated. Thanks and God Bless.

-Byron Nelson

Anita,
In Dean's video blog he mentioned buying foreclosures at an extremely low price for cash and passing those saving's to us. I'm currently serving in Afghanistan and have started a small investing company and hope to get it out of it's infant stages when I get home. I would love to get more details on these deals that he is making....I think these deals would be a great starting point for my investing company. Any insight on what Dean has in mind for the cash homes he is buying would be great. Feel free to email me at hidalgoinvestments@**** Thanks again for your help.

AJ Hidalgo

I am new to the forum Dean book can still help for 2010. I have no credit, no money, no job. is there any other book
Thanks

Hello everyone I am new and would like to know where can I download
Investor Disclosure Statement and Seller's Acknowledgement forms
because I can't seem to get them on the forms and documents.

Thanks

Ok, my agent will not submit my offer until I have a cash buyer come and look at the place and they say yea or nay. Problem is that I don't have one yet!!!
I had made a list when I first started out learning about real estate investing. I didn't ask as many questions as I should have, so now I'm in search of a cash buyer. My real estate agent is looking to submit the offer like yesterday and I don't want to hold up the process. I had put an offer on the condo in late November and the sellers agent just got back to my agent about a couple days ago stating that they are looking to accept, but my agent had to redo the contract so it's up to date. I need to find a cash buyer!! Please help :0

Hi, ok slow down a little, what exactly are u looking for? For the gist of your request, you put an offer in two months ago on a townhouse and they are just now getting back to you saying they will accept your offer. Is that about right? What contingency's did u put in the offer? How long before you are required to close? I am assuming you locked the property at a decent discount to move to a cash buyer. Where is the townhouse located? What are the comparables? What is the price? PM me and I will try to help you. You don't necessarily have to have a cash buyer right this minute. If your closing date is 30-60 days out and you have some good escape clauses you can use that time to find a buyer.
Let me know I will try to guide you best I can.
Sincerely,
Donna Quenzer

How do you determine the After Repair Value?

We found a foreclosed house that's been on the market for a year. Can we start our offer at 50% if we are to pay cash? If the offer goes through and get the property for 1/2 the price, how soon can we refinance?

Will we be able to get at least 80-90% of the total market value when we refinance so we can start investing again at another property once somebody rents the house?

Also, is buying foreclosures with Fannie Mae any different from the rest?

Kindly enlighten us if you find any future problems/ loopholes or any disadvantages in doing this plan. Any advice will be greatly appreciated.

Thank you so much.

I have a buyer on my list that is looking for 30-50% equity on properties that are no more than $250,000. Let's say I found a property that's fair market value was $220,000 and the loan balance was $145,000. How would I find out if there is 30-50% equity in the property?

I hope I explained my question correctly

Hi all:

Looking into bank foreclosures, but how do I make money (or get money)from a deal when dealing with banks??

Help please
Billy T.

So to have 30 to 50% equity you take the value of the home say the 220000.00 and he would need to pay between 110,000 to have 50% equity and 154,000 to have 30% equity. So if you lock up the property for 145,000 and sell it to your buyer for 154,000 he gets his 30% in equity and you get 9000.00 for selling it to him. WIN WIN,

The best way I have found to determine ARV is to have a contractor give you a quote on repairs, and then take your comps of properties that have sold with simalar bed bath square footage in top notch shape. And avg a sq ft price to find a good ARV. An appraiser can give you an ARV if you tell them what item's you plan to repair.

For example you buy a house for 50K it needs 40K in repairs it is a 4bed 2bath
on a concrete slab with 2 car attached garage. Say in its current condition it has a FMV of 60K it is 5 years old. You go in and your contractor charges you 40K, it is in like new condition now and the comps come in at 131,000. 131,000 is your ARV.

Fannie Mae has there own criteria they follow, They list with realestate agents and they usually put the homes on the market at Fair Market Value. They require proof of funds and have a set earnest 500 for anything 100k and below and 1000 for anything above. Just make sure you have your proof of funds and your earnest money ready because they usually only give u 24 hours to provide those once they accept your offer, they will automatically give u 10 days for an inspection. Normally they have had someone go and inspect the property they sell as is and generally do not waiver from that unless it is something major the inspector missed. We bought a doublewide they had listed for 78,000, we paid 40,000 for it no contingencies, close in 20 days. It took 2 weeks to get an answer but they accepted the offer it to had been on the market for over a year. We fixed it ourselves for around 20k we had to replace the entire ceiling due to water damage, put tin on the roof, painted and demoused it and sold it for 135K it was on 1 acre. It took around 50 days to close. It is the government you are dealing with after all. We had to put 500 in earnest. The worst part about fannie mae is they are slow and it is easy to lose your earnest money so make sure you really want it and have proof of funds for the amount you offer not one penny more or they will reject u. If they reject your first offer and don't counter just submit it everyweek until they do.

Thank you Granny! You are really helpful. Thank you for taking the time out to answer our questions

Thank you so much for taking the time to answer my questions. I really appreciate all the information and advice that you gave. This site is wonderful because of people like you trying to help out those who are just starting out. Again, thanks so much Granny

Should we get help from a realtor to represent us in buying a bank or fannie mae foreclosure ? Would there be an advantage if we are to get one?

Should we just go ahead and talk to the listing agent of the bank/Fannie Mae?

Thanks so much.

I have created a PDF fillable form for rehab analysis. Who can I submit it to for approval to be incorporated with the forms available to the DG family? You can print it out and take it with you to evaluate a property or email it to your contractor to fill out right on his computer after his inspection. I have this and other forms that I believe would be valuable to RE Investors and I would like to offer what I have as my thank you for all the support everyone shares.

Thank you all!

We own 50 acres (totally paid) should we borrow money against it to have cash on hand?

Hello,
I want to attend an auction on a house next month. The starting bid is 9,000 dollars . If i am the only bidder should i start at 9,000 or will the price drop lower and they will call out a lesser amt? I do not want to loose the property be not bidding at the time it is called by hoping to get a better deal. There might be lots of others but what if I am the only one.The auction is 21/2 hrs away from the town that the house is located. I have never been to a house auction This will be my first income property! I really want it because my daughter rents a place 2 blocks away and she could have her own place v/s renting!

Hi,

I had read so many Real Estate books and not sure which book I recieved this info.

I want to get some CASHOUT at closing different from my seller concession. I planned to buy the property less than the market value from a FSBO and request cash at closing for personal issue. What is the procedures for this transaction along with the loan name?

Looking forward to your response,
Jacqui'

What's the easiest way to locate a commercial property owner? I can usually find the name through the county appraisal district but thats all the information they give. When I try to google them for maybe a phone number I come up short on answers. Is there maybe a website that has this information? Or do in need to use a people search website?

What's the easiest way to locate a commercial property owner? I can usually find the name through the county appraisal district but thats all the information they give. When I try to google them for maybe a phone number I come up short on answers. Is there maybe a website that has this information? Or do i need to use a people search website?

try

http://www.switchboard.com

I seems to be doing good on company phone and website info etc.

Hi Everyone,

I am new to this so bear with me. Can anyone explain locking deals with assignments. I purchased Dean's book over the week end and have read it but am still not to clear on this. If someone could break this assignment process down for me I would appreciate it. It doesn't appear to be that complicated which makes me think that I am overlooking something.

Thanks