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Great!

Thank you The_Specialist

I have decided to get the deal done (hard money), rehab it (advertise the property for sale while this is being done) and then sell it for full market value.

Thank you to everyone for your responses. I really appreciate it! I found out yesterday that the bank will not allow assignments of contract, so I decided to birdog this investment.

Again,

Thank you!

Okay, here goes...

I have what I believe to be an excellent investment property:

ARV= $400k
Purchase Price: $240k
Repair Value: $12k

The problem is this,

It is a bank-owned property and the bank needs verification of funds BEFORE signing a purchase contract. I was planning on wholesaling this property (would have preferred to Double Escrow...don't have time), so therefore would need to market it to my buyers. My question is, how do I market such an excellent investment property to my buyers without them trying to go around me and deal, knowing that I don't actually have the property under contract? in other words, I need my buyer to submit a proof of funds to me so that I can give it to the bank. If my buyer knows that I don't have the money, they can cut me out the deal.

Is there anyway for me to market the property without actually telling my buyer that I don't technically have the property under contract?

Please Help! I don't want to pass up this deal.

Good morning all,

Let's talk about Double Escrows. In short, a Double Escrow is when an investor negotiates a purchase price on a property for nothing less than 20% of the asking price. Once you have a signed Purchase Agreement for this price you then market the property to retail buyers for full value. Let's look at an example:

Value of Property: $230,000
Asking Price: $200,000
Negotiated Purchase Price: $160,000
Retail Price: $230,000 (retail buyer will pay)
Profit: $70,000

The key to the Double Escrow is that you must have the same closing date for your purchase of the property and your selling the property; therefore, you do not need any money to actually buy the property; your end-buyer pays for it, and the balance is yours.

So with that said.....what have been some of your experiences with Double Escrow? If you have to close within 30-45 days, what is the fastest way to go about finding a retail buyer willing to purchase your property?

Look forward to hearing your responses!!

Buying tax deeds according to things that I have read can provide a source of great profit. For example: here in Maryland, you must go onto the specific county website to access the list of homes that have defaulted with paying their taxes. The information that is usually listed is: the property address, the amount of taxes owed (which is the amount that you would pay for the property); the assessed value of the property and where it is located; sometimes it will provide info about the # of bedrooms/baths. What happens in Maryland is that there is a form that you fill out through the county website specifying which property you want to make a bid on. You can bid by Group (which is more than one property at a time- usually by city), or you can bid on an individual property. Some of the prices for these properties are out of this world (i.e. $200 for a property worth $150k)--these numbers are quite normal.

The catch to this is that once your bid is in, if it is the highest bid for that property, you then essentially own it; free and clear of any mortgages because the county wants to take these default-tax properties off of their hands. However, if the current owner of this property wishes to pay up their taxes to date...you cannot aquire the property, but your bid amount will be reimbursed to you. Their is a period of Right of Redemption...this is the time when the owner can pay their taxes and redeem their home. If you were to put in your bid today, the county will notify you tomorrow whether or not your bid was accepted. You must pay attention to where and when these deeds are being sold and purchased because it's usually not often...I believe that my county here in Maryland does this type of thing once a year.

Anyway, the profits seem unreal since you are able to invest, for most homes as little as $100 for a home worth $100k...free of mortgages. You can then rent them out, fix them up and resell--for the ARV! I will definetly be putting in my bids next year.

Well, this is my understanding of the process...I hope this helps a bit.

Good morning everyone,

I hope your week has been good so far.

I need your analysis of this possible deal that my realtor tossed my way.

Seller is facing foreclosure. In order for the seller to stop the foreclosure she will be paying $12,000. The ARV is $349,900. She is willing to sell me the property for $270,000 (which is the amount she owes on the property). I am planning to wholesale this deal to an investor for $280,000.

Tell me your thoughts please.

Some details about the property:

Townhouse
BR: 3
FB: 2
HB: 1
Style: Colonial
Construction: Brick
Repairs: Updates throughout

I am planning on wholesaling it.

Good afternoon everyone,

I would like your analysis and/or advice on a potential deal:

5bd/2b Cape Cod
Located in Washington, DC
Asking price: $320,000 (seller brought price down 50K)
My offer was: $280,000
Seller wants: $320,000- NO IF, ANDS, OR BUTS!
ARV: $370,000
Repair Value:$5,000
Homes in the area have recently sold for $400,000 and these homes only had 3 bedrooms!!!

The seller is waiting on me to respond to her counter offer.

Please give me some advice.......

Is this a deal or no deal??

If one has signed a Buyers Agent Contract with a Realtor, and you as the buyer start to feel that your Agent isn't really helpful, how do you get out of the contract? is it just as easy as walking away, or do you have to sign some sort of release contract. Also, if you have a realtor and you want to see properties posted by another realtor is it okay to go out with the other realtor?

Thanks everyone!