All Forum Posts by: Bryan Casteel

Looks like The Washington Post is asking the same question:

http://www.washingtonpost.com/wp-srv/realestate/features/2006/housingoutlook/how_much/how_much.html

You can just add the "and/or assigns" to the signature and hope that it doesn't raise any problems. You could be more up front and say that you need to have the flexibility to close this property into several different companies and you are not sure which one you are going to use right now.

In many states, a contract is assignable as long as it does not say that it is NOT ASSIGNABLE. That means that you don't have to write "and/or assigns" on the contract to be able to assign it.

Remember that banks will not accept contracts with the "and/or assigns" language on it so it is not worth trying. They don't want their contracts to be sold so they are tough on the non-assignable language.

Miles,

You need to make sure to look for motivated sellers. There is no reason for most people to work with you because they aren't very motivated to sell.

Focus your efforts on finding motivated sellers. Then, when you are taling with them, don't just jump into the "owner financing" discussion. Ask them a lot of questions about thier situation and go to see the home. Talk with them some more and develop a rapport with them. Ask them if they would take a purchase price of $X and when they agree ask them if they would be willing to take payments directly. Then you will have to do a lot of education with them so that they feel comfortable with the deal.

Don't get discouraged because you can do it, but make sure that you are spending your efforts on motivated sellers and not just anyone.

Fred,

Don't assume you know who the buyers are in your small town. There are a lot of just "regular" people that get into rehab deals. When you drive around your town, keep an eye out for signs of rehab going on and make a point to stop and ask questions - you might find a rehabber at work.

Also, find the nearest Real Estate Investors Association to start networking. You could find some rehabbers who would work in your town if they knew that you could bring them deals.

Usually, mold is something that you can deal with very easily. All homes contain mold - even the one that you live in. The problem is when there is a large concentration of mold in a certain area. This is caused by the combination of moisture and a substrait for growth. The substrait is usually an organic material such as wood, fiber, etc.

The first step is to solve the root cause of the problem - which is the source of moisture. Stop the excessive moisture before cleaning the mold. Once the problem is soved, then you can clean the mold problem.

Most people think that bleach with take care of it. Unfortunately, that is not usually the case. Bleach is a surface active agent that does not penetrate the substrait. Bleach will kill the head of the mold but will not kill the spore. There are several products on the market that are specifically sold for killing mold. Another alternative is to use Dawn dish detergent. It will kill the head and the spore and clean the area (as an added bonus it will leave your hands soft and looking great :D Thanks P&G).

If the mold is too plentiful, you may need to have a remediation company get involved or demo the property. In southern areas, the nasty black mold can be particularly difficult to abate.

Just do some web research on mold abatement, there is a TON of info out there on dealing with the problem.

GOOD LUCK

You have probably heard this before, but it absolutely true.

The hardest deal is your first one, they each get easier after that.

Make sure to do your homework and once a deal looks good and feels good, go for it.

As Johnny said, making an offer on an REO property is not different that making an offer on any other property...except that I will add that there are a few more expetations from the bank.

First, they have a lot of properties to sell and they are not interested in messing around. You will most likely have to send proof of funding and proof of earnest money with the offer.

Also, you will have to accept the property AS-IS without warranty. Don't expect that the bank will fix anything or allow you to negotiate upon an inspection. They are not interested in admitting any knowledge of the problems with the property. They will also not allow you to turn on the utilities for further inspection - take it AS-IS or go away.

DO NOT be afraid to make "low-ball" offers on bank owned properties. Many will be reject, but you can only pay what you can pay. That is not to say that you should make it a practice to just make a blind low-ball offer - make sure that you make an offer that is good for your needs.

Banks usually have a policy to not negotiate. You will find that they might counter offer you once on an offer, but they will not usually engage in a long negotiation process. In fact, they will usually just reject an offer outright if it doesn't meet their needs. If your offer does meet their needs, they will get back to you. The best situation is when the agent calls you back and tells you "We are in multiple offers, please present your highest and best offer". What they are saying is that they are interested in getting rid of the property and you are close. Just up your offer by a little and tell them that is the best you can do. They will either accept or reject.

Don't give up on bank properties. The bank has needs and goals and you don't know when those needs and goals change. You can find yourself in the right place at the right time if you just keep offering.

jrobles26,

Why has this place been boarded up for 8 years? This seems very excessive. I would think that a property like this would be so far deteriorated that it would continue to go down in value constantly. In fact, if it is really bank owned, I would think that they would take $1 for it if someone would be willing to just take it off of their hands. Give some more info...

Hi Donna,

Can you be a little more clear with your question. Are you looking at being a contractor to trash out bank owned properties or are you looking to buy bank owned properties that need to be trashed out?

Also, what does the reo market look like in London?

Scott, welcome to BiggerPockets. I look forward to hearing about your ventures into rehabbing and your wifes ventures as a real estate agent. Please stay active on the rehabbing forum with questions and experiences.

I think that your strategy of flipping and putting profits into rentals so that you can pay all cash is great. I am surprised that "all cash" didn't chime in on your plans as I am sure he is in agreement. Cash flow from a clear and free property can be very exciting.