1. Must have a buyers list before looking for deals
Not necessarily. If your strategy is assigning, you need other investors, if its hold and rent you need tenants. My particular investing method I contact a property management company and they find the tenants for me. It depends on your method. Plus, if you can tie up the property for 60 days or more then you have a lot of time to find buyers after you grab your deal
2. Find a deal and lock it up using a Purchase agreement and the clause "and/or assignees" next to my name to make the contract assignable.
Yup, you can never go wrong with the and/or assigns option. Better to have the option and not need it than vice versa.
3. Find an end buyer and either reassign the contract using and Assignment of Contract, or find a titile company that does "double closing", closing with the end buyer first and then the seller.
Again this depends on how you want to employ your exit strategy or if you rather a long term hold.
1. Is the repair costs determined after I tie up the property?
Pretty much yes. I always ask for pictures of the property to get an idea of the cosmetic damage, but the only way you can determine things like electrical, plumbing or foundational issues and so on is by having it professionally inspected.
2. Is it best to reassign the contract or use a title company that does double closings?
It depends on what you want to do. Assignment is quick and hassle free but the potential for profit is much lower. Double closings can get technical but the payoff is usually way better.
3. Is it necessary for me to show proof of funds when I make an offer?
Its possible to negotiate this off depending on what else you are offering and how motivated the seller is. Going through an agent, they usually demand proof, dealing directly with a fsbo you often have a lot more flexibility to negotiate.
4. Do things change if the property is listed with a Realtor?
Like I said, negotiating is many times more difficult, depending on the situation. A realtor is not a motivated seller and wants to maximize the sale price rather than get out of the property quickly. With reos however, there is no home owner per se, but the listing agent might be willing to let you negotiate the price, depending on the commission structure and other factors. In any event, always attempt to negotiate, regarldess of who you're dealing with.
I have found a deal in my area but kind of dont know what to do next. I have asked a realtor to provide me with the CMA, but I kind of dont know what I am looking for with the CMA.
The cma (comps) helps you determine the market value of the property you are looking at. Its useful if you're retailing to an end buyer or applying for financing, and gives you a good picture of your built in profit going into the deal. Its also cheaper (free) than an appraisal and more reliable for determining value.
Is there any specific place that I can find contracts or is it best to consult a RE attorney to have it done?
The answer is yes
. Always get an attorney, regardless of if you're using your own contracts, the state issued ones, the ones your agent prepares or the ones you download off the internet.
I am very motivated to start and would appreciate any help anyone can provide me...THANKS IN ADVANCE!!
In my opinion this is a great place to ask the questions your asking, lots of good people here glad to help out.
Author
