All Forum Posts by: Michael Bishop

Wow, what a great posting this is. Scott, I'd like a copy of what you suggested that can be had by emailing you, however I'm new here and I don't know how to get your email. If you know how to do it, please email it to me.
OK, here's the deal on this. And before any of you "pros" out there snub me for being a Realtor, keep in mind that I specialize in your world and i've done hundreds of deals.
So, the law in NY State, which i believe is similar everywhere in the Country, reads as such "anyone who buys, sells, or rents real property for another and for a fee must be licensed." With that in mind, you can still assign any contract. I think that we all agree on this. What I'm talking about is when you have a Realtor write a contract and in the space provided for the buyers name you put "so and so AND/OR ASSIGNS". Anything other than that is not what i'm writing about and anything other than that is probably where your problem is.
Where it gets sticky is the fee. If you're trying to collect a fee for doing it, meaning a sort of side deal that works behind the scenes of the contract - you can easily get into trouble, especially if there's a bank involved in the final step, meaning that the end buyer is using a mortgage. In alot of cases, since no one is harmed there is usually no one to complain. However, there is a growing trend to stop this type of real estate investor activity. Here's the reason why. When you, as the original investor get into this type of deal, you have to remember that if your assignee fails on the contract, you still have a contract and you still have to buy it. As you can imagine, there has been a flood of deals that fail to close when assignee's fail on them and that has created a rally cry for someone to do something about it. So much so, that a lot of Realtors already think it's illegal. It's not, but there's so much bad press about deals falling through because of this there is a desire to put a stop to "and/or assigns" that goes all the way to Washington.
The easy way to avoid all of this hassle is to do a dual closing where you're buying it and selling it at the same time. This way, your purchase price is X on your contract to buy, and your selling price is X + $$$ on your contract to sell, and the $$$ is your "fee". This is clean. Here's a tip for those concerned about dual closing costs. Factor that into the end buyers purchase, get them to agree to pay your closing costs.

Chris, I didn't realize that you had already had signed contracts. First, you should realize that this is a part of the REO process and often these types of deal "fall apart". Then, IF they've published that your deal is "Withdrawn" AND they've got escrow funds of yours AND this didn't happen because of something that you did - they need to return those funds to you. Depending on your area, you'll need either your Realtor or your Attorney to fight for this.

Why this happened is probably the big question. I think that there are tons of reason that a deal could fall apart but in the world of REO's, and Short Sales, it is essentially one thing. The seller (the bank) didn't get all of their ducks in a row before offering the property for sale. We all know that actually closing one of these deals is always questionable. The banks know this too. Often they're not motivated to do thier due deligence until just before closing. This leaves discovery to the end, and then when a problem is discovered they seem to just throw up their hands and say "Oh well" and move on to the next one. I've had one fall apart just six hours before the scheduled closing. Six Hours. Anyway, once they've thrown the deal under the bus, you may have to fight for your deposit money.

It may be important for you to understand why you get certain types of deals outside of the MLS. Inside the MLS, you're looking at properties that are jealously defended by Pros. Pro's like Realtors and, in some States, Pro's like Attorneys. Think of the MLS as being like Walmart. Can you find a sale? sure. Can you buy below wholsale, NO WAY!
Apart from the MLS, it's each man for himself (ladies, too!). I've been known to make the statement that real estate is the deep end of the pool where the sharks live - you've got to be careful. Your success is dependent on what you know, how you negotiate, and your ability to see both sides of the deal and know which one you want to be on.

I manage properties here in the Buffalo, NY area for many investors from outside the State and also from outside the US. There are many property managers who are not licensed and don't think that they need to be. I don't know what State you're in, but the real estate law works pretty much the same everywhere. The prevailing rule is worded like this: anyone who buys, sells, or rents real estate for another and for a fee must be licensed. You should check with your local real estate board to find out if that applies to you, or your attorney should be able to answer that for you as well. By the way, don't even think of doing this business without an attorney on speed dial.

These are all great replies. I like the idea of walking before you run. Understand the "why". Why do you want to invest in real estate? Imagine where it will all end, then learn to think backwards and determine each step along the way. Eventually, you'd find the place where you feel good about taking that first action step.

I realize that everyone is trying to answer as completly as possible, but here's the simple point of it.

Withdrawn is supposed to mean just that, the listing has been withdrawn and is no longer for sale, and presumably will not be re-listed anytime soon - or for the forseeable future.

Temporarily off the market is usually used when the seller realizes a reason to put a hold on the listing. This is normally because of the discovery of a physical defect but can also be a paperwork defect, such as Title issues. These are things expected to remedied in the not too distant future and so the listing can be re-activated at that time.

You might be one of the bravest ones here - to buy an investment property where you're going to pay for the heat. I'm not sure about where to put the thermostat, but if you're looking for another building where you can pay the heat there too, just let me know - one of my clients for whom i manage the property in Niagara Falls, NY has one that they'd love to sell!!!

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I recommend that you find a Realtor who speaks "investor", one who has lots of contacts in the mortgage business. What you need is only a little direction. First, you need to find out what you 'can' do, then you need to decide what you want to do, and then do it. Call your favorite real estate brokerage and ask to speak to the manger, ask the manager if there's an agent who specializes in investment real estate. Make sure you're not talking to a rookie. Find an agent that you trust, and you'll be more than half way to your goals.
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Being a Landlord is being in business. You can't run a business anywhere in the Country without a legal department. You clearly need the guidance of a good L&T Attorney.

First, you might want to determine if the cement board siding actually IS asbestos. Many people mistakenly believe that ALL cement board siding is asbestos. There were three manufacturers of cement board siding, but only two used asbestos. The only way to be sure is to have it tested at a lab. IF it's asbestos, you'll probably have to check with your municipality what the legal way to remove it would be. Once you've done that, other options may be more attractive.