All Forum Posts by: Jose Falconett

So if a flipper is buying cash from a motivated distressed seller... The investor would then pay the closing costs of both the seller's and their own closing cost's for the initial PURCHASE (at least that is what is most common).

Now for the SALE of the flip at the intended ARV...

Does the flipper account to pay the retail buyers closing costs and their own once again? If not what cost's are commonly and typically accounted for the retail sale?

Hey guys so legal question, feel free to answer if you might have an idea but if you're an attorney that'd be all the better! I am a wholesaler.

So if you didn't know recording a memorandum of purchase of sale agreement is a way to secure the real estate deal, "clouding the title" so that the seller can't sell to someone else after selling to you. 

Now upon reading these sample agreement's it ask's you to fill in the "Sale amount" and to attach exhibit A...(the purchase contract itself). 

The problem is that I don't want to share the sale amount in the memo that goes into public records because I wan't to prevent my profit from being disclosed to the end buyer to prevent them from having to much bargaining power of course. 

So would I be able to leave the memo sale amount blank or white out the sale amount on the "exhibit A purchase agreement"? Would this invalidate the document at all? Any recommendations would be great!

Wow, this is exactly what I am looking for along with tax delinquent homes, and pre-foreclosure.

It seems like everyone that suggests targeting these types of properties for marketing needs to use public records...except the public records does not provide a list or none at all, so Im curious as well as to how to get these

How do you determine the equity in a property using public records after getting off the phone with the seller if they don't have the payoff statements to prove to you.

Public records only show principal and length of mortgage (15-30)yrs typically. The interest I would assume based on historical averages. 

I don't know how to account for taxes, PMI, homeowners insurance, and refinances, when plugging into a mortgage amortization calculator. http://www.mortgagecalculator.org/calculators/mort...

If I give you a scenario can you show me your strategy for equity?         $80k mortgage note recorded January 2005 

                                                            6% interest rate 

@Jason Hirko Trying to find out what the equity is in a property is usually done no matter the strategy. It is less emphasized in rentals but still important to know that a deal can be made so that you not waste time.

Jason, do you know how to determine what the equity is in a property, I can't find this answer anywhere on BP or online

@Jason Hirko I am basically trying to figure out the equity for when a seller calls me and has not a clue as to how much they owe, their interest rate, their monthly mortgage payment etc. so that I can determine if they have enough equity in a deal to make a deal. Basically I can't offer say 50k if they owe 100k and I certainly don't want to go through inspection, putting under contract, just to come to this conclusion in the end.

The only advise i've gotten was to look at public records which gives this limited info. The other was to look at a sellers payoff statement which takes about 2 weeks in mail.

Can you tell me your procedure as if a seller called you and you had to determine if the property had room to make a deal?

@Jason Hirko Thanks, so when evaluating properties for equity on the phone it is basically a historical educated guess. 

Knowing that now, do you have a link to a good amortization schedule calculator to plug in said averaged interest rate and the principle given on the mortgage note from public records. (trying to find out how most investors filter leads that don't have equity).

For purposes of an investor doing there due diligence and also for situation where a seller has no clue what they owe, interest rate, monthly payment amount etc.

Since mortgage notes recorded in the public records does not show interest rate only length of mortgage and its principle, what interest rates do you assume a seller would have and how can I learn how to assume this properly?

I've had investors tell me if it was 2010 then likely around 5%. Can anybody instruct me or give me some kind of trend for interest rates!? THANKS

@Wayne Brooks what year is considered back then? A mortgage could have been taken out 10-15-30 years ago and I know of people who had paid it off in that time span. So that's one of my frustrations, which interest rate to choose from.

It should matter to what you agree to pay though because your inspecting, using your resources, sellers time, end buyers resources, all for deal to possibly fall through at closing due to underestimating how much was owed on the property. 

If you are wholesaling, find title companies that know investing. 

For your purposes find one that can do seller side only HUDS, so the seller doesn't get mad at your profits.

Find a title company that can do dry double closings unless you will be funding parts of the deal.