Process from finding properties to owning the property

[Cody Jensen]

Hello,

I would like to know the process to purchase a property without using a realtor, using yellow letters to get contacts to the owner of the property. Then going through the purchasing process. So would it be, send yellow letters, get in contact with the owners, if they are interested in selling, make them an offer? , Get a mortgage? then what? would that be the process? 

Thanks,

Cody

[Kerry Baird]

Send letters, they contact you.  Sometimes they have questions, sometimes they are checking to see how high you'll go, and sometimes they will be annoyed.  But the ones who call you and are ready to sell will let you know. I like to keep a script to fill out with information from the potential seller. 

At first, I went over to every house.  Soon, I only went to houses where the owners *really* wanted to sell.  So, I will go over and check the house, ask why they are selling, ask how much they think repairs will be, ask them what they need to get out of the house. I also present three methods I can buy: fast, medium, and slow.  Fast is lower price, some cash, and often taking over their mortgage.  Medium is often a lease option with a middle price range, but the payout is in the future.  Slow is a conventional mortgage, which can take a month or more.  

The house must not need a lot of repairs in order for me to get a regular mortgage, because it is not possible to get one where the roof has no serviceable life in it, for example.  A house must have walls and cabinets.  Another alternative for a buyer to consider is looking at hard money, which is often in the 12% range, buy you are only using that money for 3+ months, while rehabbing.  Once the house has a tenant, it can be refinanced into long term money, if you choose to do that.  

OK, so we agree on price and method of selling/buying.  I pay for an inspector to come and check the house, so I am aware of major defects.  And if all is still a go, I like to have my local title company or local lawyer draft up a contract that is commonly used in the local area, and I pay for them to run a title search.  I need to pursue insurance for the property, and liability for the contractors. We set a closing time, and they close the deal.