All Forum Posts by: Jeff Warner

I forgot to mention that if you are going to record a document your going to want to have it notarized. There is no point, imo to record a document binding you and the seller together if there is not a "witness".

Also, ask your county clerk what they consider the "Legal Description" to be...my county does not allow the property address or the tax lot number, yours might be the same. Here is what my county says:

Acceptable legal descriptions are:

* A subdivision name with lot and block
* A metes and bounds description
* Partition plat recording and parcel number
* Recorded Deed number

Get the correct info BEFORE you head over to get your contract signed.

Jeff

Call your County Recorder/Clerk's office. I put them together because they are the same here...maybe because OR is a WELFARE STATE!!

Anyway, before you do that I would verify with your Title company to make sure that they take that seriously and that you are actually "clouding" the title. There might be additional paperwork they require or you may have actually open escrow and get the ball rolling as if you were really buying the house.

Jeff

Thanks for the info Eddie. Those are some nice looking homes, they look big too. I'll send you an email.

Jeff

Eddie,

I guess I always assumed these 10-15k properties were in war zones. Do you mind me asking where your buying?

Jeff

That makes sense. Keep us posted, I'd love to hear the details. Happy New Year.

Jeff

Terry,

Any progress on that deal? I know it's only been a couple days but I thought you might have got your offer accepted.

Jeff

That's a great story Dwight.

Jim, EXCELLENT advice. I am learning an awful lot about Mobiles here.

Jeff

My first question is what did your post card say? If I received a post card I would assume it came from an Investor since a regular home buyer would send a letter, if anything. What did they say on the message they left for you? I like to listen to tone of voice and try to find things that signal motivation such as: "I'd really like to get rid of this house" or "please call me as soon as you can" or anything along those lines.

You need to be upfront with people, don't tell them your going to pay CASH if you don't have any. But at the same time you need to gain their confidence so that you can put the home under contract and flip it. Do you have buyers that can close on the deals?

I have found that out of state owners usually have family, a friend or a neighbor that can assist in showing a property. I had one that was out of state, the home was boarded up and they told me I can bring my cordless drill, remove the boards and go into the house as long as I tell the next door neighbor. Everyone is different. I would not ask them to mail you keys, instead ask them "Is there a way for me to get in to inspect the property?" I like to phrase it like that rather then open ended so that I can get a quick yes or no answer.

As far as forms, you mentioned Lease Option, Seller Carry and Wholesale so you'll need to figure out what your trying to accomplish in order to pick the right forms. Good news is that is the easy part so make your calls, gauge their motivation and go from there. Before you call, I would pull up the COMPS so you already know the value before you start talking with them.

Jeff

The only reason to double close on a FSBO transaction would be to hide your profits, either from a nosy homeowner who you bought from or an investor on the back end that doesn't want anyone to profit but himself. Aside from those scenarios, you should try to stick with assigning contracts.

As for title company's wanting fully funded transactions on FSBO's..they are out there but keep in mind that they are telling you THEIR company policy, not the law. Find another title company.

I forgot to address the EMD question in my last post...That is ALWAYS on you as the investor. There is no HML or Transactional Lender that I have ever heard of that will put up earnest money.

Jeff

Ronald,

First off, I want to point out that when it comes to FSBO's there is no need for transactional lenders, only for REO's and Short Sale flips because those transactions need to be fully funded.

Also, most transactional lenders (if not all) don't lend the money unless you have a buyer in place prior to your closing date. There is only one instance that I'm aware of that would require you to use transactional funds for 30 days and that is for BofA Short Sales that require a 30 day "seasoning".

Perhaps you are referring to a Hard Money Lender? Also, when it comes to EMD, depending on your contract that you use a lot of people don't give any EM on FSBO deals. With REO's, you can tell the agent that your EMD will be given within 48 hours of offer acceptance.

Also, in reference to your POF...that is something you'll need when submitting an offer on an REO and they don't cost you any money.

Jeff