All Forum Posts by: Simon W.

Hi guys,

Something came across my mind, I never really thought about it since I wasn't focus on buying REOs.

I saw a property REO for $30K and the area is usually $60K-70K

Say that this REO is move-in ready, no repairs needed. Would there be an instant equity of $35K if the property is worth $65K?

Thanks!

his fee is just expense. Yes you should have every receipt that he deducts. Like Steven Hamilton II said the 1099 should show it.

Thanks Ned. I appreciate the response. I'll definitely take your advice and let the buyer the price including the fee.

hi,

There is a property that I might be able to put it under contract.
I found a potential buyer who does rehab and wholesaling as well.

I didn't tell the person the "assignment fee" since he asked me how much is the fee.

The thing is, the property was originally being sold for $12K, then negotiated some more, brought it down to $10K, then negotiated some more and brought it down to $5K.

I originally want to profit $15K since I was able to get it down to $5K and sell it to a contractor for $20K.

If I was just to assign it I want to make at min of $5K profit.

The property is in another state and this new potential buyer is also in another state.

Now my questions are

1. Is assigning allowed in Illinois?
2. Do you think $5,000 assignment fee is fine if the property I can get it for is $5,000?

Thanks for any input.

Thanks Jon for your input. I haven't thought about what the lender will think regarding to that.
The seller is a seasonal investor and a broker, he said he can introduce me to some banks.

Hi BP'ers!

I tried searching on the forum and don't seem to be able to find an answer specific to mine.

I have a seller willing to sell me his portfolio of 14 properties.
I am currently still reviewing the tenants leases.
I am trying to use some creative financing here.

He told me if I want the deal, it's mine. He can introduce me to banks, who most likely do the mortgages. I know that banks don't do 100% financing.

I read somewhere about this "2nd mortgage", where the buyer can ask the the seller to do a 2nd mortgage.

I am not fully understanding this concept.

Does this mean that I ask the seller to put up the "down payment" and I just pay him monthly with terms (sorta like a promissory note?)

Thanks in advance

Jon W. it's definitely going to be hard, but it never hurts to talk to the bank directly "face-to-face" if a layout of what the income will be producing from the other property the bank might be okay with it. I mean the bank wants to make money, so give it a try.

Page Huyette - I definitely made sure I am never attached to a single property. I am waiting for Schedule E to check out the numbers!

Thanks for responding.

Leon Yang, if the seller is willing to do the financing. I am thinking amortized the loan in 30 years. balloon payment in 5+ years by refinancing it.

Dyna J., thanks. I will be doing my due diligence. Definitely going to check the numbers and everything to make sure it's good.