All Forum Posts by: Jerry Kisasonak

The link posted was good. Every rehabber has concern about being pounded on the appraisal. It doesn't matter if you have 10 buyers willing to buy at $50K above the appraised value, unless they're cash buyers. A few additional comments:

1. Take pictures of the property AFTER the demo. It looks terrible! And you don't have to provide after pictures. They're on the MLS, and besides, the appraiser is AT THE HOME LOOKING AT IT.

2. On your list of renovation, line item as much as you can. The longer the list, the more work it looks like you've done. Example: Instead of just putting "electrical upgrade," but "All light switches replace. All outlets replaced. New cover plates on every receptacle. New GFCI's in kitchen. New GFCI's in bathroom, etc etc."

Hope this helps!

Thanks everyone for all the info. I appreciate it : ) I have heard that people have put a clause in the contract that says something like, "If buyer is 30 days or more late on payments, buyer agrees to deed the property back to seller." This, of course, is to give the seller more comfort in deeding it over in the first place. But is a clause like this really enforceable? Or should it be thought of as more like a suggestion to the buyer? As in saying, "Hey, if you lose your job and cannot make the payments, just deed the property back."

On another topic, has anyone done an Agreement for Sale? This, to me, seems to be the same thing as a land contract or contract for deed. I was thinking that his may be an alternative to sub2's because the seller retains title until the terms of the agreement play out. Have any thoughts or suggestions about this strategy?

Great! I was given misinformation and it confused me.

Do you use a note servicing company when you do subject-to's? I've heard they are good because the end buyer makes payments to the servicing company and both the seller and the buyer get copies of the accounting.

Thank you Jon! So are you saying that I was incorrect in thinking that the buy-side and the sell-side contracts are written up the same with the exception of the non-refundable deposit? It looks like I'd need a buy-side contract for $102K with $2K down, and and sell-side contract for $110K with $10K down. Is that right?

I heard of the strategy of flipping subject-to's. My understanding of the concept is to identify a motivated seller with a nice property with a good loan with little to no equity. Offer the seller 1-2K to get out of property and the payments, and then locate an end buyer who will agree to the same terms of the buy-side contract except for the downpayment amount. They will put up 10K instead of the buy-side 1-2K. At Closing, the middle man (me) will pocket the difference of 8-9K.

So here's my question: If it's a 100K home, and I put up say 2K on the buy-side, that would leave an amount of 98K due (which would be the mortgage balance that would be "an exact wrap of the existing note"). On the sell-side on this 100K home, if the end buyer put up 10K that would leave an amount of 90K. I am not understanding how to write these contracts up so that the numbers make sense. From my understanding, the buy-side and the sell-side contracts are identical except for the downpayment amount. But I don't know how to write this out on the contracts where the purchase amount, the note balance, remains the same. Any help would be GREATLY appreciated!