All Forum Posts by: Chinmay J.

Thankfully there is a provision already in the RESIDENTIAL REAL ESTATE CONTRACT form K1321 that allows you to deposit Earnest Money once you have ratified contract. There is an option to do the deposit with the contract as well, however, I like the former option. 

@Russell Brazil and @Christopher Phillips - I see what you guys mean. Thanks for the education. 

@Christopher Phillips - I am a licensed realtor in VA, and we have NVAR K1321 form that we use. Its TITLED RESIDENTIAL SALES CONTRACT. Until its signed by all the parties, its an offer. Once it is signed by all parties its a RATIFIED CONTRACT. That is how typcially most realtors in NoVA area submit offers . Do you do things differently in New York?

@Christopher Phillips - I don't understand. Lets say if the listing price is $150,000 and I make an offer for $120,000 which gets shot down. He makes a counter offer of $140,000. I counter it with offer of $130,000 and get no response to it for couple of months. Then out of the blue (like an ex gf that you haven't heard from in months wanting to get back) he accepts the offer. 

At this point doesn't it become a ratified contract? How can I just say (assuming its an open offer, which is a premise of my post), that I don't want to move forward anymore or I want to counter again for say $125,000. Assuming there aren't any other contingencies to bail me out, the way I am seeing this is a plain default. I will lose my EMD, which is not a biggie, but bigger issue is I will lose my reputation as an investor.

That's fine if they want to respond me after "good until" has passed.If I am in a position to consider at the time they respond I will consider. I just don't want something I had John Hancocked two months ago coming back and biting me in the rear because the owner dragged his/her feet for two months, and now they really want to sell. 

They responded saying they got my offer and will be forwarding it. I just made it last night after 8:00 P.M. Need to give them a little bit time to hear back from the owner, but my point was there hasn't been acceptance or counteroffer yet. Sorry, if that wasn't clear.

Thank you for clarifying that nothing wrong with writing offer with expiration date.

Staying true to my 2017 GOALS of 2 flips, I analyzed several properties (first online and then visiting them), I narrowed it down to couple of properties that I wanted to write offers on. One went under contract almost right away, but ended up making offers yesterday on two properties.  

I may hear back from the listing agent in next ten minutes, or after a week, or even after a month.. or NEVER !!!  That leads me to my question. What stops investors from writing offers with expiration dates? The forms that we use in NVAR forms are open ended. By default there is no expiration date on the offer.  This can create a very tricky situation. If an investor writes 20-30 offers in next few months, he/she might end up with a situation where seller accepts an offer that was made a few months ago. Depending on individual situation an investor may or may not be in position move forward.

Wouldn't an expiration date of some kind save me from being in default on ratified contract? 

The verbiage would look something like this This offer is valid for 7 calendar days from the date of offer. If not ratified the offer expire.

Now, I am pretty sure I am not a genius, and no one thought of this before me, which begs the question, is there a good reason why this is not the norm.   

Sure. I love boring stuff. Boring is where money is. If you live in Chicago and want to do business in Arizona, sure. You can do that, but you better have a pretty damn good system to make it work in your favor.  It can be tricky to buy real estate in other states. Be prepared to travel there and get feel for it, and that costs money (at least it did last time I checked). 

I am always amused when people talk in broad terms like the Chicago market or Scottsdale market, and paint with broadest possible brush. Real Estate is local.. zip code by zip code.. community by community...block by block.

@Emily M. - Anywhere, where there is a deal and my circumstances allow me to do profitable business.

@Timothy Metra - If I were you, I would do both at the same time and ease my way out of W2 job. If your employer is giving you hell, you can try and get a less demanding job that is less mentally taxing.

In the meantime you can still become a realtor, start house hacking, buy a duplex etc. I am about 12 yrs older than you, and I have been doing both for last 4-5 yrs. Finally, after having a good rental portfolio, I am at a point where I will be starting to flip houses. I got my real estate license in 2015 and grew my rental portfolio. I am taking the slow route to ensure what I build lasts. 

I have seen a lot of people who quit the job too prematurely and then end up struggling later on.  Once you quit the job its hard to get back in the workforce. Employers don't look at you as a responsible individual.

I do love your enthusiasm.