All Forum Posts by: Nii Okai

@LydiaT, Yes, you are right... This practice has stopped years ago. I agree with you that transactional funding or HML will be the best ways to go. Thanks for the reminder.

@Trevor S. Foster

Hi Trevor.... Aren't you a lucky man? This is every investor's dream - seller financed deals. Great.

Is this a single family, detached or row house? How many rooms or units are in the property ? 

Where in the DC area is this property? SE, NE NW?. 

What kind of works are needed and what would this cost?

What is the as is value of the property?

Nii Okai

Hi @Gregg Heminger . I hope it is not too late to congratulate you - getting your feet wet and jumping on to a bigger fish. Keep it up Gregg. With regards to your 70 unit deal, I need some additional information before I can say anything. - 

How many units are vacant?

How old is the property? 

Has it got any deferred maintenance?

What type of roof has it got and how old is t he roof?

What is the unit mix? 

What is the property class B, C or D?

What is the neighborhood class A, B, C or D area?

What is the cap rate? 

What is the asking price? How much is owed now? What is the debt service? 

Waiting to read from you

Nii Okai

@Dave S.

Congratulations Dave.... Getting your first deal under contract is an achievement. hurray!!!! Now, seriously speaking it is always better to disclose to your seller that you will be selling the property and making a profit in the process. Disclose, disclose, disclose..... 

Now, if your profit is a huge one... then you will absolutely need to do a double close. I presume you need the money from the buyer to pay the seller. Your title company should be able to assist you to set it up as suggested by @Lydia R. 

Btw... remember to send me my share of the profits (lol)

Nii Okai

@Mark Enriquez

Before doing anything at all, it will be good to know

i.    What is the house worth

ii.   What is the mortgage balance(s)

iii.  How much is needed to cure the default?

iv.  What are the monthly payment(s)

v.   Your exit strategy -  

Once you have all these information, we would be able to tell if it is a deal worth pursuing or not. 

@Christopher Kolasa

If I may ask, who wrote the contract on the loser deal for you without any weasels and or contingencies? If you can, get out of the loser deal. It will only get worse. 

For the second deal - on the other hand, @Brandi Pearl Thompson's suggestions are very good. She is giving you first hand information. Listen carefully. - 

I will ask for seller financing - apparently, there will be other issues to deal with - so better have all your monies available to undertake the works. 

You need to go there yourself and have a first hand look at things before you do anything. Go and meet people and forge alliances. Investing is a team sport - you can do some things over the phone, but well.... up to you.

Hi Nathan, the wholesaler's offer is completely legit. In my opinion he only wants to make money legally on the deal and I see nothing wrong with that - In actual fact, he is a savvy investor. Let me explain. 

FIrst of all, here are 2 facts to keep in mind 

i. Only licensees can receive commissions from the sale of real estate

ii. An option gives you the right to purchase the property, but not an obligation to do so.

Now, if this wholesaler were to bring you a buyer - you could refuse to pay him a commission and there is nothing he can do about that. There is no way he can sue you to pay him.  End of story.

On the other hand, with the option contract, he becomes a principal in the deal - with an "equitable interest". He now has the ability to either sell his "equitable interest" to a third party or do a double closing to pay you off on the settlement day.

By doing this, he has solved the problem of not being paid and he makes a nice paycheck at the close of the deal.

Now on the issue of "option consideration" there is no hard and fast rule as to how much should be put down. Whatever the parties agree to, is okay. it could even be for $1.00. 

If you really want to sell your property, look no further. You have a valid buyer - if after 30 days he cannot perform, the contract lapses and it is over. And in that case you keep the $100 that he gave you. But if he performs, you are the biggest winner - because you are selling your house for full price without paying any real estate commission. 

You are the winner in this deal. Go for it.

I agree with @Mark Winters ... 

I understand you are anxious to have a deal under your belt, but this is not it. Wait for the real deal. Be not in a hurry. Continue looking.

On this one, the numbers are too tight. It is an aligator deal.

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