All Forum Posts by: Account Closed

 They do not represent investors, only lender.....offering properties for banks that are in foreclosure. Do your due diligences,  very important to know what ur bidding on, inspect the property.  

There are times when the owner in foreclosure will cause problems to the house he is about to be evicted from; cement in the toilet, crossing electrical,wires, blocking the waste vent pipe...etc. discovering these problem and making an offer to the lender with pictures and a contractors inspection report will help the investor acquire the REO.

Charles

As an investor and auctioneer, I sell properties at a reserve auction, usually it takes about three weeks of advertising, the auction takes place in front of the property and offered as is for all cash.

Many investor we represent don't own the property, they are controlling it and want to flip it while in contract for more, the assignment takes place next, this is where the profits are made.. Make sure you make full disclosures, have a built in extension and make lots of subject to re-assignment auction offers.

Charles

You may want to start about not buying real estate, think of investing as searching for equity. Learn how to sell real estate you can control.......not legally own. 

In my opinion when you reduce your motivation from real property, houses, commercial, land or non conforming properties and start to understand how to CONTROL equity, your investing career will be rewarding and profitable.

When getting facts about a property, determine how much equity you are negotiating for. The questions you ask; how much do you want, how much do,you owe? The difference is called equity. If they owe $50,000 and you think the fast re-sales amount is $70,000, you now know what ur negotiating for  $20,000.  All you have to figure out is how much of that equity you can negotiate for yourself.

What I do after I control a property (after making full disclosures on a skinny contract), is sell after three weeks of marketing using the auction method of sale.  I like the auction method  because the controlled property is being offered to the public in "as is" condition for all cash. On the above example, the equity is $20,000, that's your desired profit, so if you are wrong with your estimate and you only make $10,000, you are still ahead since you have spent very little on the deal, take your $10,000 and do it again, if you are really wrong or the auction doesn't go as well as you expect and make $5,000, so be it........have a great lunch.

Charles

Hard money can be hard to pay back if your flip does not go well.....I suggest you CONTROL the property with a delayed settlement with right of possession, and during your study period, fix it up a little and and sell it at public auction, assign  your contract to buyer using an assignment agreement.

The auction will be a "reserve auction", as is for all cash.

Example:  if your contact is for $100,000 and you feel it is worth more, do a little cosmetics, contact  a friendly auctioneer, market the property (make arrangement with the auctioneer for a referral fee), set a reserve and auction the property. If it sell for $120,000 or more, you make a $20,000 assignment fee.

The great thing about this system is that you are selling it as  is for all cash. Think about this you are selling real estate you don't own, with a contract of sale you have equity ownership.

Be sure to make full disclosures with the seller.

he'll get his $100,000 and you make $20,000 or more.

I do this all the time and it works great.

Wishing you good luck,

Charles