Buying from motivated sellers

[Eric Morgan]

I am getting ready to start my marketing and had a wonderful thought. "What do I do if someone wants to sell me their house?"

I have a hard money lender willing to loan me 80% ARV so I will paying cash for these deals. Do I need to go through a real estate agent to close or do I just need to contact a title company. What is the process after making an agreement with a motivated seller?

Thanks,

Eric

[Curt Smith]

Right good question. :) Join your local REIA and ask around for their purchase and sale contract someone will share with you. I have one for various scenarios from a 1 pager good for wholesaling and assigning to a 60 pager for buying commercial.

Negotiate price, terms, closing date.  Take a few blank contracts to the seller and have a few signed by all parties on title.  Leave one copy with the seller.  Call the seller back every few days to assure you are on the job working on closing (or finding a buyer to assign to) or getting your financing.

Take the signed contract to the lender AND to the closing attorneys office and ask them to start title and to open an escrow account.

The lender and attorney will guide you through the rest.

While this is going on, start running contractors, GCs etc through the project getting estimates bill of materials etc so you start rehab the day after you close.  If its a rental, I start advertising it for rent even before I close because I work extremely hot rental markets and renters are happy to see raw rehabs and even give me a reservation fee before the rehab is done.  I NEVER pay the mortgage on my new rental purchases.  I always have a renter in before the first payment is due.  :)

Good luck.