All Forum Posts by: Phil Z.

Explain how moving debt saves you money?

It's possible with a double-closing but it depends on the bank and whether they have a no re-sale for 90 days clause or a 'there are no undisclosed agreements' clause. Unfortunately it could be months before you find out and by you backing out could send the seller to foreclosure.

You can also do a single closing in an LLC by adding buyer 2 and then having buyer 2 pay off buyer 1 to leave the llc after closing.

OR if you have the end buyer lined up, you might be able to swap out your contract for a new A->C contract for a fee from Buyer 2.

I would figure out what the rent should be and use that. What happens if that tenant leaves? .. then you have to get a new tenant at fair value. Consider it a temporary bonus.

Unless your friend is a real estate broker .. they can not get paid based on the sale of the home. But they CAN get paid per-lead if its not tied to the sale. (at least in Connecticut)

Standard Realtor contract, just make sure it can be assignable. DONE!

Depends if they mean a pre-approval LIST Price or that they had a final approval letter from the last buyer.

It is possible that they can change the buyer at the same price, but it could still take 7-45 days to change the name.

(1) Depends if there is competition. If the deal is priced low and every investor is looking at the property. Then you need to get your highest in quickly. Keep in mind that your highest offer should not exceed your MAO .. so thats not a huge deal. If it's not a 'hot' property, then do not come in with your highest offer. Come in with a reasonable offer than you can support with the LOWEST comps and/or repair adjustments. If the seller accepts, but the lender declines .. then usually the lender will counter offer. At that time you can stick to your original offer or come up to you MAO.

DO NOT use inspections to renegotiate the price on a short sale! Short Sales are sold as is and in most cases the lender will not allow repair reimbursements to the buyer.

(2) I would definitely make them aware. Because it lowers their opinion of what they thought the property was worth, will help lower the BPO value (if they are smart enough to pass the information to the BPO agent), and also they will be forced to disclose it to all buyers.

(3) In my opinion, you are over doing your diligence prior to making the offer. Go once, do your repair estimate and submit the offer subject to your major concerns. Liens and clear title are already part of most real estate contracts. If you see questionable handy-work, then put a 'subject to buyer approval of any open permit violations', but ask your attorney if that's even needed, because its possible that undisclosed permit violations could be used to hold up the sale with or without the clause.

You need to look at the recent and local sales of comparable sqft in updated condition (for ARV). Also investors don't typically shoot for the highest-possible re-sale value, so you need to stay in the lower price range of the updated home sales to figure a quick sale price.

Your saying the numbers don't work today, but the numbers might work 10 years from now? Then the numbers don't work and I would not buy it. (Unless this is not for investment purposes).

Ask the agent if you can pre-date your contract for the 16th day and if they can submit it as soon as its open to investors.

You will not be able to get your offer accepted in the owner-occupant time frame.