I like to hear the seller name a price first. If I start naming a price, I might either (a) overpay when I could of gotten less or (b) insult the seller with a lowball offer. If I get the seller to start telling me about the house and the money and their plans after they move this allows me to tailor my offer to meet their needs and expectations.
Contracts don’t normally need to be notarized (at least in Florida where I am). Some legal documents like wills and trusts normally do as well as anything getting recorded like a deed or mortgage.
Normally all those expenses you mention are paid at closing. That’s what title agents and attorneys get paid to do. Take care of all those legal details. One thing you will probably need is to try and scrape together at least $500 for earnest money deposits. Most sellers expect to see this although I generally try to avoid putting one up if at all possible. (I’ve changed my general strategy to $100 in liquidated damages as opposed to putting up any sort of deposit and some FSBOs are naive enough to not notice this.) It also is a good idea to get access to backup money though credit lines, credit cards, hard money lenders, rich friends and relatives, etc. if at all possible.
Oh, yeah, and…(while I lay in bed) - Posted by Ellie (NYC)
Posted by Ellie (NYC) on July 25, 2002 at 15:06:05:
Okay, so I wanted to take a nap (haven’t been feeling well) so I finished reading today’s post and lay down. Does this happen to any of you guys? Potential scenarios and questions and possibilities and things I could do to find motivated sellers just started swarming in my head. Is this normal? Is this good? I think I sorta like it…
ANYWAY (I tend to ramble), I had some questions. I will try not to ask 47 at once. Keep in mind these are all hypotheticals. Also please keep in mind I have NO money of my own (I do have a hard $ lender if the #'s look good though) and I plan on flipping my first few deals.
Say I get to the house of the potentially motivated seller, I ask all my cleverly phrased, emotionally evoking questions, and we’re ready to discuss $. Is it better strategy to use the “if I closed all cash tomorrow, what’s the absolute lowest offer you would consider?” or should I throw out a low-ball figure (like 50% FMV if seller has that kind of equity) and a 2-week time frame and work from there? I was thinking with strategy #2, the higher the asking price the longer the closing time frame. ???
If I make a written offer and the seller accepts in writing, do I get it notarized? If so, is an on-call notary a good idea or should I just drive myself and the seller straight to one?
Since I have zero bucks, is it going to be a problem as a “flipper” or whatever? I have my marketing taken care of (good friends in great places), and according to most of what I’ve read I can do this with $0.00. I want to make sure I understand this part. I can just calculate any brokers’, lawyers’, escrow agents’, and title co.'s fees into the flip profit and have the escrow agent disburse as necessary? What kind of little money am I going to need to have? Like recording deeds or performance mortgages (all of which I need to read a bit more about)?
Okay, they may be long, but that’s only 3 questions!!!
Would it be out of place to say, “I love you guys”? Just reading through some of these posts every day keeps me smiling…Thanks to all…
Keep in mind these are all hypotheticals. Also please keep in mind I have NO money of my own (I do have a hard $ lender if the #'s look good though) and I plan on flipping my first few deals.