Hi,
I'm trying to get into real estate from a while now and I've came across pace morby's subto formula. I've considered subscribing to his mentorship but the price tag is simply too hefty for information that are largely available, the value from the mentorship would be his constantly updated contracts and supportive community. That being said, I would like a critique on my plan to owning my first house and would appreciate and critique.
1) Find listing with low equity and <4% interest rate ( FHA/VA )
2) Call the seller and offer creative financing be it seller financing, cash payment, sale/rent proceeds in the future
3) If the seller is agreeable send an offer - In here, when I'm sending an offer, does it need to be in a contract format or simply $xxx,xxx purchase price, monthly mortgage payment of $x,xxx, cash payment of $xx,xxx. Will this suffice? Or do I need to source for an offer letter contract to show intent?
4) Once the seller accepts the offer, I will need to prepare the contracts. I'm not exactly sure what contracts need to be signed and I'm looking to source one, this is something I'm currently researching further
4.1) The contract needs to protect me from seller's bankruptcy, change on mind for the deal, assist me with the lender in the future if required and more
5) Inspect the property, check for outstanding lien, hoa, mortgage payment, insurance, tax
5) Closing costs - agent 2.5% ( if they are part of it ), escrow/title transfer (??%), inspection cost - how do I get the ballpark number on these?
6) Seller transfers title + deed to me and I do my part of the deal (either cash or whatever terms we agree to )
Thanks in advance!
