potential WHOLESALE deal brooklyn ny HELP NEEDED

[Tamika D.]

Hello BP fam

Need Help wholesale deal Brooklyn NY Ditmas Park Area IM NEW

brief info on this potential deal

worth = 2.2M OR 2.1M

estimated cost of repairs - 200K

asking = 1.65M

1400 sqft 6 beds 6 baths

 turns out the listing broker is part owner and he is willing to work with me for a good price . what's a good price to offer 1.35M 1.4M?

 do you think he would consider $100 deposit if i mention  i have end buyers waiting to see the offer and this is my first deal since he is an investor as well ?

how do i know if that is the actual value of the property ?  

do i need to go to a title company or can i just get the property under contract and then assign it ? 

How would i get paid my finders fee?

ANY ADDITIONAL ADVICE WOULD BE GREATLY APPRECIATED =)

[Patrick Britton]

@Keith Hawkins get it recorded?  huh???  admittedly i'm not from NY but I've never heard of that nor have done it.  

@Tamika D. you can determine value by finding comps. is it SFR? 1400 sq, feet and 6 bed, 6 bath??? jeez you New Yorkers live tight.

let me walk you through it step by step...it's actually rather simple (getting the buyer's is the hardest part - IMHO)

1.  get the property under contract: make an offer and get it accepted.  try for $1.35 and see what he says.  DON'T LIE.  if you don't have buyers lined up don't say you do.  that will come back to bite your head off, guaranteed :)  nothing is more irritating in the business than dealing with liars, deadbeats and tire kickers.  BTW, the buyer in your purchase and sales contract should read "you, and/or assigns" not simply "you."  

1a. instead of earnest money, do a promissory note due within 3 business days of the end of the feasibility period or whatever your "out" is. try for 30 days given the large amount. this way you have NOTHING out of pocket. $100 EMD is bizarre considering the price...to say the least

2.  open title: call up First American (they are my fav) and simply say "i've got a property under contract and i'd like to open title."  that's it...but also double check their cancellation fees just in case.  once you get preliminary title back make sure it matches what you have in the purchase and sales agreement.  send title the signed purchase and sales agreement, the promissory note and all addenda.  DO NOT SEND THEM ANY ASSIGNMENT OF CONTRACT FORM.  that will be done later.  however, tell your title/escrow person you are wholesaling the deal and make sure they are aware of the process and cool with it.  

3.  find your buyer:  they'll most likely want to view the property so arrange for an "inspection"

4.  assuming he/she wants it, say that the contract is theirs for $$$$.  given the amount, you might be able to get away with a lot...you then sign an assignment of contract, they give you a cashier's check for the fee and a check payable to title/escrow in the amount of what the promissory note is.  then you send all the paperwork to title.   or, you can have title/escrow handle the assignment fee at closing.  i prefer outside of closing because then it doesn't show on the final HUD-1. if you have escrow handle it, once the buyers say they want it go straight to escrow together and sign everything there.  escrow will know what to do - assuming you've been straightforward and told them your intentions well before.  

5.  wait for closing and/or transfer to be recorded before you spend your cash...just in case.  

that's really it.  and if you find a good title/escrow officer familiar with wholesaling it will make everything much easier.  in fact, i think of it as a prerequisite to any wholesale deal.  

I should emphasize that in step 4 there are 2 checks.  one is your fee, the other covers the promissory note or earnest money deposit. 

some people forget about the EMD and end up paying out of their assignment fee.

so...using a promissory note and confirming no cancellation fee for title protects you from having to spend a single, solitary dime.  

good luck