All Forum Posts by: Russ Swan

I'm also looking at another property which is a Freddy Mac.
Will Freddy Mac, HUD and VA properties be similar to Fannie Mae regarding owner occupancy?

Thank you kindly Matt for that inclusive and educational answer.
I assume the first look period would be over since it's been listed on the MLS since December 2nd. My agent has written INVESTMENT at the top of the pages of the Owner Occupant Certification and on the Notification to Listing Agent. I assume he knows what he's doing then.
Very much appreciated Matt.

Hi Wayne,
No. I can't be the owner occupant. I live in Australia and that should be apparent to them by my address under the contract signature.
Is this a deal breaker then?

I'm in the process of making an offer for a Fannie Mae Property. Just received a rather long (17 pages) Addendum to the Purchase Agreement from the realtor.

1. Para 4a requires a declaration whether the property is or is not to be used an occupied as the buyer's primary residence. 
2. There's an Owner Occupant Certification that the realtor is not knowingly submitting the offer for an investor purchaser. There is no YES or NO to that one. And if the realtor doesn't subsequently report it they are liable for a $10,000 fine.
3. They stipulate a 10 day inspection period which overrides my requirement of 15 days.

Can anyone provide comment on this?

Going through the posts here prompted me to tell you about my experience with Find Cash Buyers Now. Bought the initial offer of $97 per month. Pulled something like 400 leads of which about 40 or so had phone numbers. Every phone call except one was a dud. The one call that wasn't a dud was an answering machine which didn't call back.

Judgement?   FAIL.

Made me very cautious about trying the Find Motivated Sellers Now deal.

Russ Swan

My concern about the title fee is that I'm told I might expect to make something to the order of 25 offers on average before I get an acceptance. Even at $150 for title searches I don't need that's going to add up for something I don't need.

Basically I'm just trying to understand the process in the US markets - then I can work with it.

Russ Swan

Thanks Wayne,

So in the covering email to a copy of the purchase agreement signed by me and the seller, I should state that title search should not commence until after the 14 day inspection periods has expired?  And that will be enough?

Russ

Hi,

Would you kindly clarify something for me please?

First off I understand that if I’m assigning a contract then I don’t need a title search or Settlement Statement. That would surely be a matter for an assigned buyer who’s accepted an Assignment of Contract Agreement.

Now let’s say I send a signed purchase agreement to my title company, which I intend to assign to another buyer. In the covering email I point out that I intend to assign the contract, but at this point I don’t have one identified yet.  There is also a 14 day inspection period which allows me to cancel the contract if the property doesn’t pass the inspection.

What if the property fails inspection by me or an assigned buyer within that first 14 days? None of us would be wanting to pay for a Title Search as it would no longer be required.

So when do title companies normally start doing the title search and applying the fee?  Do they normally wait until any inspection period is finished?

Thanks,

Russ Swan

Thank you gentlemen. That's answered it nicely. Chris - Am just checking options. I live in Australia and because of the time zone difference I will need to become a night-owl to take calls and talk to sellers.

Not so bad if I choose a property that my agent presents to me, but I had wondered if I'd found a promising lead, what alternate arrangements could I make to contact and negotiate with the seller. Obviously the realtor will have to be paid - it's only fair. But if I'm bringing in a lot of leads to him/her there may be room to negotiate an agreement I should think.

Thank you again for your input.

Russ Swan

I'm new to the US market but have a hypothetical question. Let's say I come across a promising lead for a property on sale. Being unable for whatever reason at the time to contact the seller directly myself, I pass the lead onto my local realtor to follow up and do the negotiations for me, and gets a Property Agreement under contract to me. I subsequently assign the property to a cash buyer and the property title eventually goes across to the buyer and I collect my assignment fee. How does the realtor get paid? Commission from the seller? Do I pay the realtor fees? Cheers, Russ Swan