I found a first deal, but it is FSBO and need help

[Kevin Kohler]

Hi all,

I think I found my first deal for a fix and flip. it is a FSBO, so I want to know how I should approach it to get control of the property while I get money from my private lenders. Do I submit an offer form or do I go to the homeowner and have them sign a full contract? I would like to skip paying realtor fees, so then should I go ahead and contact my title company and RE attorney?

Point me in the right direction please!

[Justin B.]

Is there a current mortgage on it? If not, try an owner financing approach.  Ask them for a loan with interest for 12 months with a balloon at the end of it.  Never hurts to ask.  You will pay a lot less than a private lender.  If there is a mortgage, that's out.

Even if a realtor gets involved, the seller pays the realtor fee, not the buyer.  I'd recommend using a realtor when you go to sell.  Their fees are worth the service they will provide.  Just work that into your numbers before you buy.  If adding realtor fees when you sell make it not make money, it's a bad deal already.

Outside of that, yes, you need a full contract no matter what you're doing.  Make an offer, if accepted, put together a contract, then purchase.  Your title company and attorney would get involved at the appropriate places of the process.  If you don't know when that is, not trying to be harsh, but you might need a little more education before jumping into a flip using private lending.  Real Estate is a great investment, but if you don't have a good idea of what you're doing, your much more likely to buy a bad deal or make enough mistakes along the way to kill your profit.