All Forum Posts by: Stephanie Simmons

If the property is listed 95% of brokers require their agents to have the seller sign an exclusive right to sell - which means they will handle the deal and will get their commission (both the seller as well as the buyer side of the commission).  You going to the owner won't save the seller any money & will piss off the agent and they will post likely advise the seller to not sell to you (especially if you are considerably under the listing price).

Since you don't have an agent and I assume you aren't one - why not call the selling agent (or better yet call an buyers agent that works with investors) and tell them what you are thinking for an offer (i'd go low) and keep questions open ended to see what info if any you can get?  Although agents seem to be more chatty with other agents - letting things slip like why the seller is selling - how motivated they are etc.

If you go through an agent (theirs or your own) - you won't need to hire an attorney to write up the purchase & sale contract.

Or - you can wait until the listing expires or cancels and then contact the seller directly to see if you can get a deal done.

Pretend you are a renter looking for a unit in a comparable property - seriously go look at them. Talk to the landlords - get copies of their applications and fee structure so you know what your competition is doing.  Be conservative and figure tenants are ~18-~24 months w/2 month vacancy every turn & at least one major update/repairs needed at that point (paint/appliances/flooring).

It's all in the risk you are willing to take - but the lower your payments or carrying costs the less cash reserve you need.  The higher they are the more you need.  Lower the payment the better the cash flow....  Yeah you can be leveraged 75% on every property but if it costs you $$ every month - then that isn't going to work out.  So it depends on your financial situation - I usually do 35% to get lower interest rates on a traditional mortgage; but then I flip with cash and have high cash flow from that part of my real estate investments.

If you close at the beginning of the month and are using financing you will prepay interest from the day you close to the end of the month.  Doesn't mean you will pay more over the time of the loan - just higher up front cash outlay.  You also get the property earlier - which theoretically means you can get to cash flow sooner.  

@Brett Goldsmith

What I want to do is find someone early in the foreclosure process - give them an offer and help them submit it to the bank's risk mitigation & help them show the bank they cannot repay.  With an offer in hand - they should be able to submit to the bank and see if the bank will approve the short-sale (even if not at my offer).  I could then help them to list it if they choose & the bank doesn't accept what I am willing to day.

Am I missing something?

@Mano Yeghikian

It’s always a good time. Don’t over value the sell and figure in some contingency.

@April Dagonese

I’d err on the side of encouraging him to find another place. Some cash and anything to assist isn’t a bad move. Last thing you want is this guy thinking that you are ruining his life or putting him in a bind. That is when people do get violent (drunk doesn’t equal great decision making either).

@Nate Hayes if you don’t have capital, time, or knowledge - then you are going to need to partner with someone. I’ll be honest - I have a good friend that wants to partner with me but she doesn’t add anything to the game. No expertise - no liquid capital - no time. So you are going to have to put something in the deal - many people start out by giving their time and then they learn so later they will have expertise.

No cash - you might want to start in wholesaling because you don’t need capital.

@Andrew Schrader

Along with the messiness of having to evict someone not on the lease - what if he doesn’t pass a background check. Like a sex offender or violent criminal?

@Steve Smith. Thanks Steve. I will check it out!