All Forum Posts by: Kevin Barrett

Another popular investor group is Bob Bohlen's meet up which typically takes place in North Andover. Details can be found here: http://www.meetup.com/Income-Real-Estate-Investing/
I've attended for the last 3 years and have probably only missed 4 or 5 meet ups.

Maxwell Dolgin, I'm a fellow Massachusetts investor that just joined BP recently. I've already learned a lot in a short time span that I've been involved in the forums. I hope that it translates into many successful real estate transactions. I'm definitely motivated to take action and it's nice to have BP as a backstop for any bumps in the road. Best of luck starting off and perhaps we'll cross paths at some point!

Ethan Hamilton, As far as YL are concerned, Listsource.com seems to be a popular destination for many. I even heard the guest on the latest BP Podcast mention this website. Also, I would recommend listening to BP show 18 because he speaks about his wholesaling business model and touches on his YL criteria.

Ann Bellamy, Thanks for the advice and helping me understand more about working with end buyers. I always enjoy your feedback :)

Also, I'd like to extend a BIG thank you to Justin Silverio as I was able to pick his brain about wholesaling and he provided me with some invaluable insight that will help me progress. Per his suggestion, I am going to review Option to Purchase Contracts and perhaps use utilize it in my first potential deal.

A quick update on my first lead...
I expect to meet with the seller later in the week. I'll need to estimate the repairs and then find the price point which makes sense to buy the property. If I'm able to secure the property I plan on either doing an Option to Purchase in 30 days or submit a "regular" offer with a 20 or so day window to inspect the property. If an offer is agreed to I will reach out to end buyers and have them sign an Assignment Contract.

Ann Bellamy, I'd be buying it from a homeowner. Not a short sale. The explanation on transactional funding was great on your website. Thanks for pointing me to that! I'll need to look closer into my end buyer's financing.

Mike LaCava, I did re-read Ann's comments for sure. You're on my buyer's list! -handshake-

Thanks Wayne Woodson for the clarification.

So if T = Acceptance Date then the P&S can be T + 10 days,
Home Inspection T + 9 days,
Financing could be T + 30-45 days,
Closing T + 60 days.

I'm wondering if the inspection period needs to be in line with the financing dates because I would need to show it to potential end buyers and might need more than a 9 day window. Do some wholesalers show the property to end buyers after the home inspection date and before the financing date?

Does anyone have a sample contract for review?

I have a lead on a $540,000+ house and an end buyer is willing to put down $100,000 in cash. I plan on putting it under contract myself and then assigning the contract to this end buyer. Is it possible to make the deal work?

Do I need to find a buyer willing to pay the full amount in ca$h?

Any cash buyers in MA seriously interested in a multi-family north of Boston please contact me.

Lastly, any additional input on a related post is much appreciated:
https://www.biggerpockets.com/forums/93/topics/89822-1st-potential-wholesaling-dealhand-holding-needed

Greetings!

I plan on meeting with a seller soon and could put in an offer if I am able to get the property for the price I have in mind. I extracted and copied the major milestone dates on my offer form below, but I want to make sure I fill it correctly. The Acceptance I will use the date in which I meet with the seller. I am unsure what should be included for the P&S, Closing, Financing, Inspection, and Contingencies. If I am still searching for my end buyer what would you recommend for dates? Under contingencies I wanted to put the following: "Offer contingent upon approval of partners inspecting property." For the financing piece I want to pass on the financing to the buyer and just collect an assignment fee. How should financing be entered on the contract? I assume there will be one "normal" purchase contract between myself and the seller and then a second assignment contract between myself and the end buyer, correct?

Thanks in advance,
Kevin

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2. Acceptance: This Offer is valid until ____a.m./p.m. on _________________ by which time a copy of this Offer shall be signed by you, the Seller(s) signifying acceptance of this Offer, and returned to the Buyer otherwise this Offer shall be considered rejected and the deposit will be returned to the Buyer.

3. Purchase and Sale Agreement. The SELLER and the BUYER will on or before a.m./p.m. on , execute a standard Purchase and Sale Agreement, which, when executed shall become the entire agreement between the parties.

4. Closing. The SELLER agrees to deliver a good and sufficient deed conveying good and clear record and marketable title at a.m./p.m. on at the County Registry of Deeds or such other time or place as may be mutually agreed upon by the parties.

5. Inspection. This Offer is subject to the BUYER obtaining at his own expense, a home, lead paint, radon, and wood boring insect inspection by consultants of the Buyer’s choosing by ________________. If the buyer is not satisfied with the results of such inspection(s), this Offer may be terminated by the Buyer by notifying the Seller(s) and the Broker(s) in writing, on or before ______________.

6. Financing. This Offer is subject to the Buyer using diligent efforts to obtain a mortgage commitment of $ at the prevailing interest rates, points, and terms by . If the Buyer is unable to obtain the above mentioned mortgage, he will notify the Seller and Broker (s), in writing, on or before and the deposit will be returned to the Buyer and this agreement will become null and void with respect to all parties.

7. Lead Paint: BUYER acknowledges receipt of the Department of Public Health Property Transfer Notification and understands the SELLERS make no representation or warranty, express or implied, as the lead paint content of the property. BUYERS take full responsibility for compliance with all laws relating to same BUYER will assume the burden of cost for all tests, costs, and compliance arising therefrom.

8. Additional Terms and Conditions:

Christian Austin - I just read your comment below where you mentioned a couple properties that you put offers on. About a month ago I did an Annual Property Operating Data (APOD) spreadsheet on this property so I downloaded it to the FilePlace so I could share with you.

APOD is located here: http://www.biggerpockets.com/files/user/Kebonk/file/somerville-ma-apod

How are you currently evaluating properties? The APOD is a good way to do a quick and dirty analysis and since it is in a spreadsheet you can play with the numbers. I.e. you can change the list price to see how it changes your cash on cash. Let me know if you or anyone else has any questions/comments.

Question for all: What are you looking for as a return on a multi-family property? 10% returns are a lot harder to find nowadays.

Here are some example Somerville properties I lost bids on, along with total rents. I can post more if helpful

http://www.newenglandmoves.com/property/details/632614/MLS-71509355/43-Thurston-St-Somerville-Winter-Hill-MA-02145.aspx

List: $599,000
Sold: >$700,000
Rent: $4,700/ month

Thanks Shara Carlton. I'll have to read up on this.

Anson Young - For these type of transactions are you implying that the buyer (me) will put the financing on the end buyer? ... And I can just collect an assignment fee?