[ Pobierz całość w formacie PDF ]
there for the 10 percent club that are NOT out there for most other investors.
If the above has seemed confusing, it is only because these remarks have
been reduced for space. What I hope you come away with from this article
is an understanding of how the public records can be used to further your
career as a real estate investor. In addition, the public records can show us
how long people have owned property, what liens are against them, what
they paid for the property, and give us great insight into their general
financial condition. Is this valuable? Would this help you strike the best
deal you can? You bet!
Advanced real estate training information at:
www.4RealEstateInvesting.com/members only
Real Estate Investing Article Four
Writing Offers That Get Accepted: This real estate investment article shows how
writing offers by following a few simple rules can turbo-charge your investing success.
Get more deals and pay less money for the real estate that you buy. Information on the
correct forms to use when submitting an offer.
Some Sellers are so eager to be rid of their property, or so ignorant of
its value, that they put a sign out in the yard asking far less than the real
worth of the property. In this type of situation, several offers WILL rush in.
Many will be from investors, some from people looking for a personal
home.
Note: Your offer must be written and constructed in such a way that
it will be accepted. By carefully writing your offer, and thinking about
how it will be perceived by your buyer, you can often end up with the
property at the end of the day. I am complemented often concerning the
quality of the offers I make, and the letters that I use in different situations
through the deal. I give you examples of all of these, and teach you how to
create your own offers that will get accepted, even if they are not for the
most money in a multiple offer situation!
Price
Typically, if the property s asking price is well under the true value in
its present condition, ($25,000 for me), you will want to make a full price
offer to lock it up. This is especially true if there is likely to be other
bidding or offers on the property. What I do now is offer $1000 more than
the asking price. That way I beat out any other full price offers. Most
people just will not bid over the asking price. I don t care what anyone is
asking, only what I am paying. I ll be top dog on price.
I have found in my experience that most sellers don t want to bid
people against each other. They do on occasion, and I ve been caught in a
bidding war, but usually they just take the best offer and end the
proceedings. Remember that sellers are not comfortable marketing their
property, and are eager to get it over with.
Closing Costs: If I think that there may be competition for the
property, I put on the contract that I will pay all closing costs. After the dust
settles and they are contractually bound to do business with me, I can go
back to the seller and say that my mortgage broker suggested that I finance
some of the closing costs into the price. We would simply attach an
agreement to the contract raising the purchase price by the amount of the
anticipated closing costs. Note that this makes no difference to the seller s
taxable gain, nor does it affect the size of the check he ll get at closing. I ve
only had ONE seller balk at this. That s o.k. 99.9% of sellers have no
problem with this. (IMPORTANT you will want to tell your mortgage
broker what you are doing, because the appraisal will need to come in higher
than the original contract price to cover these closing costs. Appraisals
generally come in for the exact amount of the purchase price, so be sure to
warn your lender, who will order the appraisal.) This will also make your
loan a bit larger and increase your monthly payment by a few dollars each
month.
Repairs
I almost always agree to take the property as is. I go further than
this though. On the special stipulations page of the contract, which is the
blank area at the end where the parties can write in any additional terms that
they choose, I state: Buyer is purchasing the property as is. This means
that Buyer will not ask Seller to make any repairs to the property or expend
any money on fixing any items on the property. My offer thus contains a
real benefit for the seller. Of course, we still have to protect ourselves in
case something is really wrong with the house. I put in another sentence that
says: Buyer will have the right to inspect the property for 4 days. If this
inspection is not satisfactory to Buyer, he may invalidate the contract and
receive a refund of earnest money. This gives us an out in case the house
is about to collapse. If it is a GREAT deal and you are fairly confident that
no inspection items could make you want to turn the deal away, write up the
contract so that they can keep the earnest money if you inspect and have to
cancel the contract.
Some people feel a little nervous about making an offer to buy
something as is. Your seller will love it, and it will make you seem easy
to deal with. I purchased a home in December of 1999 that I used the above
language in the contract. We got the deal. However, on inspection, I found
that there were about $9,000 worth of serious repairs that I hadn t
anticipated. Did I walk away? No Way.
I went back to the seller and explained in writing (less
confrontational) that I had anticipated making $5,000 in repairs. Those
repairs were new carpet, fixing the roof, painting, and updating the kitchen
and the bathroom. However, I noted that there were significant structural
repairs that needed to be repaired under the house. I noted that these were
not mentioned in the seller s disclosure statement, so I had no way to know
of them when I made the offer. (I also noted that I was sure that he didn t
know about them either, as few people go into their crawl space. You don t
want to accuse the seller of being a liar).
I continued my letter by stating that these repairs would have to be [ Pobierz całość w formacie PDF ]
zanotowane.pl doc.pisz.pl pdf.pisz.pl fopke.keep.pl
there for the 10 percent club that are NOT out there for most other investors.
If the above has seemed confusing, it is only because these remarks have
been reduced for space. What I hope you come away with from this article
is an understanding of how the public records can be used to further your
career as a real estate investor. In addition, the public records can show us
how long people have owned property, what liens are against them, what
they paid for the property, and give us great insight into their general
financial condition. Is this valuable? Would this help you strike the best
deal you can? You bet!
Advanced real estate training information at:
www.4RealEstateInvesting.com/members only
Real Estate Investing Article Four
Writing Offers That Get Accepted: This real estate investment article shows how
writing offers by following a few simple rules can turbo-charge your investing success.
Get more deals and pay less money for the real estate that you buy. Information on the
correct forms to use when submitting an offer.
Some Sellers are so eager to be rid of their property, or so ignorant of
its value, that they put a sign out in the yard asking far less than the real
worth of the property. In this type of situation, several offers WILL rush in.
Many will be from investors, some from people looking for a personal
home.
Note: Your offer must be written and constructed in such a way that
it will be accepted. By carefully writing your offer, and thinking about
how it will be perceived by your buyer, you can often end up with the
property at the end of the day. I am complemented often concerning the
quality of the offers I make, and the letters that I use in different situations
through the deal. I give you examples of all of these, and teach you how to
create your own offers that will get accepted, even if they are not for the
most money in a multiple offer situation!
Price
Typically, if the property s asking price is well under the true value in
its present condition, ($25,000 for me), you will want to make a full price
offer to lock it up. This is especially true if there is likely to be other
bidding or offers on the property. What I do now is offer $1000 more than
the asking price. That way I beat out any other full price offers. Most
people just will not bid over the asking price. I don t care what anyone is
asking, only what I am paying. I ll be top dog on price.
I have found in my experience that most sellers don t want to bid
people against each other. They do on occasion, and I ve been caught in a
bidding war, but usually they just take the best offer and end the
proceedings. Remember that sellers are not comfortable marketing their
property, and are eager to get it over with.
Closing Costs: If I think that there may be competition for the
property, I put on the contract that I will pay all closing costs. After the dust
settles and they are contractually bound to do business with me, I can go
back to the seller and say that my mortgage broker suggested that I finance
some of the closing costs into the price. We would simply attach an
agreement to the contract raising the purchase price by the amount of the
anticipated closing costs. Note that this makes no difference to the seller s
taxable gain, nor does it affect the size of the check he ll get at closing. I ve
only had ONE seller balk at this. That s o.k. 99.9% of sellers have no
problem with this. (IMPORTANT you will want to tell your mortgage
broker what you are doing, because the appraisal will need to come in higher
than the original contract price to cover these closing costs. Appraisals
generally come in for the exact amount of the purchase price, so be sure to
warn your lender, who will order the appraisal.) This will also make your
loan a bit larger and increase your monthly payment by a few dollars each
month.
Repairs
I almost always agree to take the property as is. I go further than
this though. On the special stipulations page of the contract, which is the
blank area at the end where the parties can write in any additional terms that
they choose, I state: Buyer is purchasing the property as is. This means
that Buyer will not ask Seller to make any repairs to the property or expend
any money on fixing any items on the property. My offer thus contains a
real benefit for the seller. Of course, we still have to protect ourselves in
case something is really wrong with the house. I put in another sentence that
says: Buyer will have the right to inspect the property for 4 days. If this
inspection is not satisfactory to Buyer, he may invalidate the contract and
receive a refund of earnest money. This gives us an out in case the house
is about to collapse. If it is a GREAT deal and you are fairly confident that
no inspection items could make you want to turn the deal away, write up the
contract so that they can keep the earnest money if you inspect and have to
cancel the contract.
Some people feel a little nervous about making an offer to buy
something as is. Your seller will love it, and it will make you seem easy
to deal with. I purchased a home in December of 1999 that I used the above
language in the contract. We got the deal. However, on inspection, I found
that there were about $9,000 worth of serious repairs that I hadn t
anticipated. Did I walk away? No Way.
I went back to the seller and explained in writing (less
confrontational) that I had anticipated making $5,000 in repairs. Those
repairs were new carpet, fixing the roof, painting, and updating the kitchen
and the bathroom. However, I noted that there were significant structural
repairs that needed to be repaired under the house. I noted that these were
not mentioned in the seller s disclosure statement, so I had no way to know
of them when I made the offer. (I also noted that I was sure that he didn t
know about them either, as few people go into their crawl space. You don t
want to accuse the seller of being a liar).
I continued my letter by stating that these repairs would have to be [ Pobierz całość w formacie PDF ]