All Forum Posts by: Matt Nusbaum

New to REI and looking forward to meeting everyone!

I found a motivated seller on craigslist for a townhouse in my area. It's a 3BR, 2.5BA, End Unit,1440-sf, built in 2002 and has HOA of $45/month. It is currently being rented out on a month to month basis for $645 which is about $100 lower than its comps. This is a FSBO and they have it listed for $63,500 which is about market value. They said they are motivated because they have bought a single family home and outgrew this one and would like to sell ASAP.

This would be my first deal so I still have a lot of questions. I did the formula that Sean Terry has talked about on his podcast ARV x 70% = end buyer price. So in this case 63,500 x .7 = 44,450 would be the end buyer price. So if I could negotiate the price with them to around 40,000 would that be worth going after?

Again I am new all this and this would be my first deal. Any advice or input would be great.

Thanks Leo, so I should just look for a local real estate attorney? How much up front cost do you think and should I do this before I find a buyer and seller or wait?

I am confused on what type of paper work or documents I need to provide after I have a contract set up with a seller and buyer. For example say I have a seller who has a agreed to sell me his house for 60k and then I find a buyer willing to pay 70k for it. After I have those contracts filled out what exactly do I need to bring to a title company to finish the transaction?

Thanks andrew. What happens if they don't repair their credit and can't refinance. Would the property foreclose on the original seller or would they just most likely try and sell knowing they cant refinance?

Hi there,

I was listening to one of Sean Terry's podcasts about creating deals from sellers with little to no equity. He gives an example about buying a home worth 100k and the seller owes 98k. He says he will offer the seller 1k cash and leave his existing loan in place for 3-5 years. Then he goes on to say he would try and find a buyer who will put 12k down and take over the original sellers loan. He says that you will make the difference of 12k less the 1k you give to the original seller less closing fees. So around a 10k profit.

I have two questions here.

First, are the end buyers paying 12k plus the 98k existing loan for a total of 110k? I am confused why Sean is saying its a 12k down payment when that money isn't going towards the loan of the property.

Second, how exactly would the end buyer refinance the deal after the 3-5 years?

Thanks!

Thanks guys,

I've been listening to Sean Terry's podcast religiously since I first hear it a couple weeks ago. The closest REIA is about 2 hrs away from me in Raleigh? Think its worth it to travel to?

Hi everyone,

I am new to the wholesaling business and loaded with questions. I would love to hear stories of how you first got started wholesaling from those who have become successful. I am a junior at ECU in Greenville NC. I have read tons of real estate books and have just recently considered giving wholesaling shot since i have no money to make purchases myself. I am wondering what are some of the initial steps I need to take to get started. I am also wondering whether I should create a website and if so how to do so. Basically any advice you could give to a complete newbie would be great!