All Forum Posts by: Adam Paxton

Hi

Im needing some advice about how to make an offer to off market homeowners without an agent. Do any of you recommend the best place to get a good purchase contract or have any specific advice for this particular type of situation? I know inspection clauses and subject to financing issues need to be included but just want to make sure I dont get myself into any kind of trouble by not including anything else that should or shouldnt be included. Are there any additional risks or dangers one should know about when submitting their own offers?

Also are there any other actions that need to be taken legally when purchasing direct from homeowner (other documents, disclosures, county recordings etc) that I would be responsible for or would hiring a escrow company take care of all of this?

THANKS FOR YOUR HELP

That definitely helps, thanks. It seems that it would be pretty difficult to stay away from discussing comps to help your case as thats such a determining factor of value. Since I will be mainly going after rehabs that arent up to par compared to recent retail solds I would only use comps to justify my offer to them based off of how much work is needed and what i can sell for down the road but i guess its the same either way.

I will definitely include those provisions in my contracts, at least for the broker anyways.

Thanks for your response.

Hi

I am curious about what legalities are involved when speaking to homeowners about purchasing their house or putting it under a contract. Are there any specific things to make sure that you are or are not doing to avoid any legal trouble when negotiating with homeowners?

And further more, I have my real estate license but am not working under a broker. Are there any extra legal implications that come into play for someone with their RE license when speaking with homeowners?

Thanks

Thanks for the responses.

@Justin Silverio great info. Those are great pros to having MLS access. Im also trying to figure out how difficult it is to find a broker willing to let me hang my license with them without the intentions of operating as an agent typically would and if there are any conflicts of interest in making my own offer on properties through their company. WOuld love to be able to make my own offers since then I wouldn't have to rely on finding an agent willing to make high volume offers for me but at the same time I would be a little weary of doing it myself considering i don't have experience writing up purchase contracts and could get myself into a bad spot if i were to make mistakes.

I am looking for property to rehab myself and have access to funds to do so. I would be willing to work with other investors in the socal area with rehab experience if anyone else out there in the area is open to discussing this possibility.

Hi

I am trying to figure out the best ways to get ahold of pre foreclose lists, vacant property lists, and any other type of motivated seller listings. How do some of you guys get ahold of these?

Also curious about the advantages of being able to use the MLS for investment purposes. I know the MLS gives you more thorough info for MLS properties but what are the other specific advantages? Do you get access to pre foreclosures or any other information not available to others?

I currently have my license but haven't hung it with a broker so am trying to figure out if it is worth it for my purposes to get mls access. I don't really have any interest is being an agent but just to help find rehab deals and realize REOs and SSs on mls aren't to profitable so mainly just want access to off market deals.

Thanks you

Hi

I am curious as to how a lot of you guys finding deals in larger markets are deciding on which areas to focus your time and effort on. I am in Los Angeles where there are so many submarkets and am kind of overwhelmed trying to figure out which areas to market to and look for deals. I realize you can research statistics for different areas to try and find ones that are more investment friendly than others but even doing this in so many pockets within such a large city seems like an overwhelming task.

Would love to hear some of the strategies that you guys in large markets use to narrow down and pinpoint specific areas to concentrate your efforts on.

Thanks

Thanks for the replies. Thats definitely something i should have known but didnt know for sure if banks would allow you to make offers for yourself if you were your own agent. I do have my license but have never worked as an actual agent so the only problem i would see with me submitting my own offers is somehow getting myself into a bad spot by messing up details writing up contracts or something of that sort since i dont have experience doing it in the past.

I know that it is currently very hard to get profitable deals from banks since they are getting FMV; I still dont understand how that logically happens but fortunately I am at least able to show banks that i do have the funds readily available. With that said, do any of you know how big of a discount I can expect to get when offering full cash.

It almost just seems pointless coming in with an offer that includes room for profit, repairs, holding and selling costs bc somehow other investors and hedge funds are coming at market which i dont see how they are making any money doing so. I dont know if other investors are just comfortable risking the investment on tiny margins or what.

I am curious about how to make high volume offers to banks. If im wanting to make 5-20 offers every week on short sales and REOs how would some of you go about doing so? I know you need an agent to offer to banks but most agents understandably do not want to spend the time and energy on this considering there is a good chance most offers are going to be rejected anyway.

I would love to hear how others are making their offers. I do have my RE license but actually dont even know if I am able to submit offers for property I want to purchase myself.

Thanks

Hedge funds maybe??