I think I just landed my first deal! Need help

[Jordan Sitzler]

Hey, everyone!  I've been looking and finally the right deal found me.  I made an offer on a piece of land with a mobile home on it and it was accepted.  Looking for help as it's my very first deal.  Woot!  Details below:

Offer accepted at 60k.  I pay half closing costs, and I get rid of trash around property.  I also told them that I'd pay for septic inspection but if it doesn't pass I get reimbursed.  They have little money to spare right now so can't afford it on their own, and I wanted to expedite closing.

I need to submit a purchase and sale agreement then go to title and escrow in about 15 days.  We agreed on a cash offer, but I'm only able to bring 15k to the table, so I'm banking on my brother or a lender to cover the other 45k within 15 days in cash.

My questions are, where do I get a purchase and sale agreement, and how to fill it out, and also how to do a septic inspection before going to title and escrow without getting burned by them backing out and keeping my 7-800 I'll have to shell out.  Also, should I look at full cash offer between me and my brother, or look to have a lender cover?  We are exploring selling as is after mobile demo, or putting a pre-fab home on it and selling for higher $.  

ANY help is appreciated as again, it's my first.  Thanks :)

[Charlie Price]

@Jordan Sitzler

Congrats on your “potential” 1st deal. And congrats at saving up $15K for an investment property.

1. A contract should be easy enough to get. Do you have any friends who are realtors or friends of friends who can give you one? That’s the easiest way. Even if you offered to pay them a flat fee commission for helping you through the transaction. Maybe $1,000-$1,500. You may get some other useful advice from the realtor as well along the way that will help you out. If you don’t want to go that route, I’m sure some time on Google and YouTube will show you the way.

2. The tougher part will be to secure your financing. Not sure you can get a bank loan in 15 days. Not sure of down payment needs for vacant land. Probably at least 20%. And it would probably take 30-45 days for the bank to process and fund. Sounds like you haven’t finalized things with “borrowing” $45K from your brother. You may want to do that 1st before you go to the trouble of writing up a contract and all. Not sure how much upside there is in the deal, but if there is enough, your other option is a hard money loan or get a partner to go with you on the deal. Both of which could be very costly.

3. As for the septic inspection, that is normally on the buyer as part of your due diligence cost. If you negotiated for him/her to pay if it fails the inspection, then maybe you could get that in writing. Then have him meet you at the property when the septic company comes out. If. It fails the inspection he can pay right there and then. If if passes, you pay the bill.

4. I’m sure you have already calculated the costs involved with having a trashed good for nothing mobile home removed from your property. If not you will want to nail down hat cost as someone (most likely you) will have to come up with that $$ right after closing and it could possibly be a Few thousand dollars to get rid of it. Sometimes if it has any value at all you can find someone to take it away for free.

5. If your going to put another mobile home or manufactured home on the property you will need another big stack of cash shortly after closing to do this. I’m sure you have already thought of that also. If you don’t put a home on the property, you may have a very difficult time selling the vacant land in a rural area. (I’m only guessing it’s in a rural area since it has a septic tank.)

Just my 2 cents worth. I have no clue of your area or “real value” of your deal. I have never purchased vacant land, or a mobil home, so I could possibly be completely wrong. Good luck and let us know how it goes.