All Forum Posts by: Matthew Reed

James Wise, Jon Holdman and James Stevens thanks so much for your comments.

I contacted the prez of the local REI club and she agrees, she said that it sounded like the Illinois standard version 6.1 contract. I told her I was thinking of wholesaling it she said "well you can't sell the contract until you have the contract to sell". So get that baby signed.

Now I mentioned to my lawyer that I was probably going to sell the contract and he's all worried again.  He wants to see the assignment of contract document.

I would do the rehab myself but I can't afford the points that every hard-money guy wants.

Ok, I got a lead on a house, I look at it and tell him I'll pay him $85K for it.  He agrees, says "send me a contract".  I used a one-pager that was in the class I took (I've used it twice before, both times rejected).  It has all the important stuff, the offered price, the amount down, etc.  He signs it but instead of $100 down he lines it through and enters $2000 down, and he lines through my title company and puts in his. 

I know it's not official until I initial the changes, but I decide to send it to my lawyer.

He goes nuts!  Why would you use this contract!!!?  He says.  "It has nothing about loan contingency"!  I say; no, it's a cash deal.  He says "do you have this cash"? me; "no, I'm going to get a hard-money loan" him "Well that sounds like something we need in there."  me, "No, this is presented to the owner as a cash deal, the loan will go through in 30 days.

Anyway, long story short he sends me back a 30 PAGE CONTRACT!!!!!

What do I do?

I can't send that back?  Can I?

I've bought other houses before, but I got them from wholesalers and they did the contract.

-Help!

-Matt

This was discussed in a podcast, but I forget which one.

Not sure what to do. Got this house to refirb and found that someone has taken the original furnace - a down-draft that blew into the ducts in the crawl-space - and changed it to an updraft. The updraft now blows into some new ducts in the attic and uses the crawl-space ducts as the air inlet. The ceiling ducts are not installed correctly, don't have the correct placement and are leaking like crazy into the attic. Some are needed for an addition that is on a slab.

The crawl-space ducts are rusted and need replacement.

What do I do? My partner says "fix the leaks and leave it". I think we should replace the updraft with a downdraft and have it working right. But that will be $$$.

Any suggestions?

-Matt

http://reitips.com/top-mls-keywords-investors/

I don't know, I can't see the property. The wholesaler states that there is a 60K buffer, the comps look that way but I don't know what is inside.

It's in a pretty hot area, which also makes me suspicious. I know there are other investors in this area, why haven't they snatched it up yet?

Maybe I should go to some people in the local REI club and ask for partners.

-Matt

I like the 3-day contingency idea. I actually contacted this wholesaler a week ago and he said they "had to have cash in 3 days". Well, now its 7 days.

Cool! Maybe I can just use my last statement?

Thanks for the comments!

-Matt

Thanks for the reply Scott. I think I'll contact my investment manager and see if I can get that done. Some is a 401K, some is not (profits from other flips). Surely that will work.

-Matt

Wow! A response fro J Scott! I'm honored, I've spent a lot of time on your site and I've been impressed by your work.

I agree, they are just not motivated enough. But this is not the first time I've heard this and I'd really like to get working on another house. I've only done 2, but I enjoy the work.

-Matt