Posted by JF on February 07, 2004 at 05:51:52:
GB,
The bank will include in the addendums a provision prohibiting an assignment of the purchase agreement. Make the offer in a trust and assign the beneficial interest to your buyer, or you can double close. Some make offers in an LLC and assign the LLC but I have not done this.
Good luck.
making offers on mls. - Posted by gb
Posted by gb on February 05, 2004 at 16:39:29:
hi folks. my wife just received her re license and i have been making some offers based on the formula, 70%arv less repairs less assignment fee= mao, none accepted yet. my exit is to assign contract to rehaber/retailer. my question is, would my offer have a better chance of being accepted if i were to put a 15-20day closing, instead of 30-45days?i have flipped several properties in the past from sending out post cards but i would also like to use the mls to find some deals. thanks.
Re: making offers on mls. - Posted by Jim Fox
Posted by Jim Fox on February 06, 2004 at 07:26:55:
If you think you are going to sit behind a computer surfing some MLS making lowball offers and get brokers to bite you are wasting your time. In a healthy market brokers are looking for offers near the listing price and a lack of contingencies.
Rule #1… find motivated sellers. There are plenty of them out there and lots of ways to find them… but that ain’t it.
Re: making offers on mls. - Posted by Pat
Posted by Pat on February 05, 2004 at 21:55:12:
I’ve done several deals from the MLS. I generally avoid it now. Keep in mind that the MLS means dealing with brokers who have an interest in getting top dollar for their clients as their commission is commensurate with the sale price. That being the case, why shoud they look twice at your offer? I suspect this is true even if you have a broker as your rep, since he or she only stands to gain half of a reduced commission. I generally avoid dealing with anyone who is commission deiven. It’s never in my interest.
Re: making offers on mls. - Posted by Del-Ohio
Posted by Del-Ohio on February 05, 2004 at 21:36:27:
If you have a highly motivated seller it can make a difference.
We have found it with banks on occassion. We had one the end of Dec, we could close in a week we had the cash. They took a 22,000 offer on a property because we could close before the end of the year. This was on a property they were not willing to sell three weeks before for 29,000.
We just finished this property 22,000 repairs 11,216 FMV 49,000-55,000.
Available cash, where seller has a certainty of closing seems to speak loud at times.
Del-Ohio
Re: making offers on mls. - Posted by Brent_IL
Posted by Brent_IL on February 05, 2004 at 19:36:11:
Your offer will have a better chance of being accepted if you were to use a 15-20 day closing instead of 30-45 days. If it will be a significant increase in your chance of acceptance is unknown. It might be inconsequential.
Re: making offers on mls. - Posted by mike
Posted by mike on February 05, 2004 at 17:26:23:
Well maybe the properties you’re making offers on have unmotivated sellers and therefore they could care less how fast you can close.
Re: making offers on mls. - Posted by John Falstaff
Posted by John Falstaff on February 06, 2004 at 11:43:42:
My dear Jim,
You’re too much. You write with such certitude yet you’re consistently wrong. The MLS contains the single largest source of motivated sellers–Banks. Every city has tons of vacant, bank owned properties that are ripe for making low-bid offers on. You just have to indentify which are bank-owned and make offers- a lot of offers.
Regards,
Sir John
Re: making offers on mls. - Posted by Christopher-FL
Posted by Christopher-FL on February 06, 2004 at 12:16:08:
What’s the best (i.e most efficient) way to identify MLS listed REOs? What would I ask an agent to pull for me?
Re: making offers on mls. - Posted by JF
Posted by JF on February 06, 2004 at 14:29:20:
Chris-
Bank owned properties can be identified on the MLS by the following information: corporate owned, buyer must sign addendums, earnest money must be in certified funds etc. Ask your agent for a list of all properties in your target areas- you may want to target zip codes-ask for all the listings and organize them from lowest to highest price and drive the neighborhood. You’ll get a feel for the market- focus on the lower priced homes and make offers- lots of offers.
Good luck.
Re: making offers on mls. - Posted by GB
Posted by GB on February 06, 2004 at 23:55:50:
JF can you tell me, once my bid is accepted, can i then assign to a rehaber/retailer? thanks