Posted by michaela-ATL on June 13, 2005 at 02:58:20:
Chyna,
what exactly are your plans? Are you thinking of flipping them to a rehabber a landlord? Do they need a lot of work? If so, then you/they may not be able to get a standard mortgage on it, but it may take a rehab loan or hard money lender. Most of them will lend up to 65%, so if you buy them at that price, it won’t be that easy to add your profit and find a rehabber, because you’re above the margin. But that depends on your market. Some people don’t mind putting some of their own money in, if they like the deal. You’re a little vague as to what your plans are, so it’s hard to comment. It’s good, that you have a backup plan, though, and are willing to purchase yourself if all fails.
First of all, thank you to all who have replied to my postings via the board and directly to me…each one of them has been very helpful. It’s not easy doing this from 1500 miles away but it seems to all be coming together.
I have two accepted offers in Tennessee, both beautiful houses and both at about 65% FMV and I have a third deal in negotiation (also lovely house) but as of now only 75% FMV Someone said that would mean the spread isn’t big enough so I’ve got that one on hold for now. I have leads coming in but not as quickly as I’d like so I have to work on getting more sources. I managed to find a title company and a great mortgage broker (if I don’t assign contracts), am working on getting a RE agent to do appraisals for me and maybe someone to do inspections if I actually take title (which I’ll have to do if I can’t find an investor to assign to). So, unbelievably, it all may actually happen.
Two of the sellers are expecting contracts early next week. Could someone please tell me what I need to put into the contracts to protect myself and yet not give the seller the message that I’m going to skip out? I know about subject to appraisal and inspection but there must be other clauses I should put in that I don’t know about. Also, is the term “and/or assigns to” or some other wording?
These have been an amazing two weeks for me…talk about “trial by fire,” and there’s no doubt in my mind that I couldn’t have done it without your support and advice. Soon, I’ll know enough to be able to do the same for someone less experienced than I am.
I’ve found out a few things in the process…I found out that it’s possible to learn to do anything if you have the desire and the right sources. I’ve also learned that I can’t say “if I become a successful RE investor” but need to say “when I become…” There’s a world of difference there.
Sorry that my posts are always so LONG. Thank you all again.