All Forum Posts by: Chris Martin

This post makes me wonder what kind of contract you really have. Apparently realtors are involved and I am assuming they are using a state standard form, since that's what realtors do. But you said in the first sentence "...my buyers buyer is shy 10K on their loan" so has the "buyer" assigned this deal to another "buyer?"

In some states (NC) when a broker talks about a "cash offer," that doesn't necessarily mean the buyer has a pile of cash somewhere prior to closing. It means the buyer will not use seller financing or assume the current owner's financing. In NC, the "standard" form is the "2T". Section 4 and 5 make the offer completely unambiguous as to where the funds come from. On a "true" cash offer, there is no financing contingency. Even though the buyer in your case was bringing $86K of "cash" (which is a pretty sizeable chunk) this is not a financing contingency-free offer.

As everyone else has said, you need to look at and understand the contract. Perhaps "Serious Misinformation" should be "Serious Misunderstanding" but the contract should spell out unambiguously what the buyers obligations are.

You can get a note quote from charter financial (or google 'boston note' and get a quote)... then you will know for sure. The note business isn't what it used to be, IMO. Don't set your expectations too high. Deal with principal note buyers for the best pricing.

Excellent topic.

I am in the process of setting up a SDIRA. I have a couple questions. Not that I plan on using it, but checkbook control doesn't seem to help me in many cases. Courthouse purchases (about half my buys) require bank cashier checks to the trustee, not personal or SIDRA checks. Ditto with RE closings, at least around here, unless you find the closing escrow a week or more in advance. The last non-trustee (non foreclosure) closing I did was 4 days from offer (Monday) to close (Friday.) Not enough time for regular checks to clear the attorney's escrow account. Also, these are (I assume) paper checks rather than electronic payments (e.g. Wachovia bill pay.)

Another question: on sale, doesn't the selling attorney require disclosure of a TIN/EIN? What would it be? It isn't my SSN, the person, but the SDIRA. Is tax identification for the SDIRA required?

Chris, google flat fee mls seattle and find a company that provides what you want. I use a service (Premier Properties of the Triangle) with signage, centralized showing (a must IMO), and lock box service for just a couple hundred dollars. MLS, realtor.com, etc. via syndicated listing. You set the buyers agent commission (e.g. 2.4%) and there is no seller's agent commission (it's FLAT FEE!)

I filed a DBA today. To "use" the DBA name, for instance to create a bank account or to acquire real estate, the institution(s) (e.g. bank or closing attorney or possibly a real estate seller's agent) will usually look for and require a copy of the recorded documents. The last DBA I did here in Wake county NC took less than a week to record.

Eric, Jamie is right. The simple solution is to always get title insurance for REO purchases. I would recommend always getting title insurance, period (as well as hazard insurance) for any acquisition... including courthouse (foreclosure) purchases.

KKnack1010, of course the other way to live off of rentals is to become a professional property manager... or better, to own a property management company... and collect commissions. A couple 100 unit apartment buildings, 100 SFR, and you can earn a living.

top line: 2 * 100 *(600*.06) + 100 *(1000*.06) = 13,200 /month

Andy, did you ever get traction with these suggestions? Have you rented (or L/Oed) the place yet?

Around here the market has slowed quite a bit in the last several weeks. We are marketing quite differently for lower end homes. We are a little below market with option prices, option fees, and rents in order to move property.

Some brokers/agents don't play well with others.

Depending on how aggressive your state attorney general is... these RE brokers might actually get their wrists slapped and handed a fine. If it were me (unlicensed investor,) I would be in Central Prison on felony fraud, collusion, and conspiracy convictions. I do not partake in illegal activity since with sound investing practices there is no need;)

http://triangle.bizjournals.com/triangle/stories/2005/06/20/daily14.html

Some states are different than others, but from what I saw (granted a few years ago) the process was basic brokering. Bring buyers and sellers together for a set fee, no contract of course, but conceptually was a commission-like system. I only know about him because one of his "brokers" (students?) had a really botched (and unenforceable) contract that eventually landed the owner in foreclosure.