All Forum Posts by: Jaccob Heath

also, where did you get your list of names to send out letters to? Just wondering lol

I agree with Karin! The title company handles the title and if the title is clouded, they should be able to get it cleared. If the title can't be cleared for a few months, simply let your buyer know and ask him if he wants his deposit to ride or if he wants out.

Remember, if he were to just back out for any reason, you keep the deposit he wrote out to the title company. But I'd the deal simply can't close, it's good business to return the deposit. (:

Best of Luck my friend

I'd always try for a 5k fee. That way no one gets upset (:

It would be a great deal if it only needed 25k in repairs and it's worth let's say 275k.

275k X .7=192.5k-25k repairs=167.5k(this is what you want to get when you sell) -10k (assignment fee) =157.5k MAX OFFER. 

There is a little meat on the bone, get it on a 30 day inspection period, and market the hell out of it and you should have it sold by the 30 days is up.

Always remember to put your out clauses in the contract in case you can't find a buyer (:

Best of luck! I'd like to know what the end result was!

-Jaccob

I take it there are no rehab costs? 

Cash buyers generally want property at 70% of ARV- REHAB cost.

If everything is ready to go and house is in nice shape then 70% of 40 is 28k, which is what you would sell to the buyer and collect 8k assignment fee. But if it needs a 50 rehab (doesn't take much) then you would sell for 23k and collect 3k. 

Make sense?

No problem. Best of luck! 

I read an E-book by Sean Terry called ultimate real estate investment.  Very good book, full of tons of information. Must read!

Anyways in his book, he references his "subject to" secrets. Which is your out clause. Under the additional terms/addition you must have the following:

1. Subject to partners approval

2. Contract subject to an acceptable appraisal by buyer.

3. In the event of buyers default, the deposit shall be the sole remedy.

He urges to never sign a contract without those clauses, it saves you if you can't find a buyer and need out. Also, he can't force you to buy his property.  

An addition, the inspection period is how long you have to find a buyer, so make it a month, then you have a month. But with an extensive buyers list, you should do well.

Hope this helps!

-Jaccob

Well done @bill Gulley. You had me sold (: 

@Richard C. 

Thanks for your reply! It really makes sense to me that you would want to be honest, especially with the valid points you made. It can be considered false hope of getting out of a bad situation, when in fact if I can't find a buyer, my "subject to" clause gets me out of the deal and leaves them hanging wet in the sun.

Thanks guys for all your answers I really appreciate it! I'd tag you guys but my phone won't let me tag anyone :/

I'm going to be completely truthful with the seller, and also going to wait until after my first deal to start a LLC.