Real Estate Forums

Buying Questions about the buying Process..Contracts...forms or just what should I do? Let one of our experienced online real estate agents help.

Reply
 
Thread Tools Search this Thread Display Modes
Old 05-19-2005, 12:15 PM
NYBirdDog NYBirdDog is offline
Real Estate Nu-bee
 
Join Date: May 2005
Location: Poughkeepsie, NY
Posts: 11
NYBirdDog is on a distinguished road
Default Money, Contracts, and FSBOs... oh my.

OK, so I think I found a good investment property. No, let me rephrase. I know I found a good investment property.

I have a few problems now.

1) How do I get it "under contract"? How do I make an offer on it?? I know a friend of the guy who's selling it, and he's asking $225k for it, but they seem to think he would take $180k. I've never bought a house -- how do I put in an offer on it? Do I just need to call him and say, "Hi John, $180,000"??

2) Other than the three "Fs" (Family, Friends, and other Fools), where can I look for money? Are there any well known hard-money lenders that would invest in a first-timer??

Thanks for the help, I feel overwhelmed!!

-Bob
__________________
Bob Maucher
http://www.nybirddog.com
NY Bird Dog
nybirddog@gmail.com
Reply With Quote
Old 05-19-2005, 08:28 PM
CafeMonkey's Avatar
CafeMonkey CafeMonkey is offline
Real Estate Web Guru
 
Join Date: Nov 2004
Location: Richmond, VA
Posts: 274
CafeMonkey is on a distinguished road
Default Re: Money, Contracts, and FSBOs... oh my.

1. You don't know how to write a contract, but you run a bird dog website?

2. Get a piece of paper. Write "I, Bob, promise to buy 123 House Street. You, Sammy, promise to sell me 123 house street. I will pay you $180,000 and will give it to you on or about June 18, 2005."

Sign it. If he signs it too, it's under contract.

That's all you need for your first contract... However, if you don't know how to fill out a contract, I have a feeling that there's a few other little bits of info that would be helpful to know before you get involved in dealing properties. I suggest that you get a good course on the subject.

I hear that Steve Cook has the best in the biz...
Reply With Quote
Old 05-20-2005, 06:55 AM
NYBirdDog NYBirdDog is offline
Real Estate Nu-bee
 
Join Date: May 2005
Location: Poughkeepsie, NY
Posts: 11
NYBirdDog is on a distinguished road
Default Re: Money, Contracts, and FSBOs... oh my.

CafeMonkey,

1. Wise guy -- Correct. I don't know how to write a contract, but I run a Bird Dog website. Just like I don't know how to juggle, but I ride a bike just fine. I'm good at teaching people, which is why I run the Bird Dog website. I'm not good with contracts, which is why I'm not a lawyer. ;-)

2. Thanks. I guess that's what I was looking for -- confirmation that it only took a simple thing like that. It's hard to believe when you see the highly elaborate forms floating around.

I'll look into Steve Cook's course, thanks for the referral.

-Bob

PS -- would you like to write the section on "Contracts" for my Bird Dog website?!? :-)
__________________
Bob Maucher
http://www.nybirddog.com
NY Bird Dog
nybirddog@gmail.com
Reply With Quote
Old 05-20-2005, 10:08 AM
judyo's Avatar
judyo judyo is offline
Moderator
 
Join Date: Jan 2005
Location: Oak Lawn, IL
Posts: 3,103
judyo will become famous soon enough
Default Re: Money, Contracts, and FSBOs... oh my.

Bob,

If you're going to do this alone then what you need is a good attorney. In my area a good real estate attorney can be found for a flat fee of around $300-$400. Well worth it in my opinion. However, if the attorney has to write the contract they might charge a bit more, even if they're only technically filling in blanks because f they don't use the local real estate contract they certainly have their own template.

Before going into what you are doing, with the knowledge that you might have wanted to invest yourself, your first step should have been to find a good mortgage broker in your area.
__________________
Southwest Chicago Suburbs Real Estate is an affordable area with close access to downtown Chicago. Money Magazine says that Orland Park real estate is one of the best places to live in the U.S. Next door you can find Tinley Park homes for sale and get Orland Park amenities at a more affordable price.
Reply With Quote
Old 06-10-2005, 11:25 PM
AaronSOLD AaronSOLD is offline
Uber Real Estate Webmaster
Recently blogged:
Edina Realty
at my REW Blog. Claim your blog
 
Join Date: Mar 2005
Posts: 690
AaronSOLD is on a distinguished road
Default Re: Money, Contracts, and FSBOs... oh my.

You absolutely need to line up the financing first and you should certainly get a real estate attorney, or even a real estate agent, to help you close the deal. Some questions you want to think about:

Do you want an inspection?
What happens if the Seller fails to close on the date agreed?
What happens if you fail to close on the date specified?
What statements on the condition of the home is the seller providing?
What is the motivation for selling?
What happens if the house burns down before closing?
What happens if the seller does not vacate the home?
What if the seller leaves a bunch of crap?
How will breaches of contract be handled... court or arbitration?

Those are just some of the reasons to have a professional do the contract. You found the house... that's the easy part of the real estate business :-)
__________________
Aaron

Minneapolis Real Estate | Twin Cities Real Estate | Edina Realty Agent
Reply With Quote
Old 06-11-2005, 07:27 AM
kensmith's Avatar
kensmith kensmith is offline
Uber Real Estate Webmaster
 
Join Date: Dec 2004
Posts: 1,735
kensmith is on a distinguished road
Default Re: Money, Contracts, and FSBOs... oh my.

Simple thought you shouldn't be trying to do this on your own. Everyone wants to save a buck and so many end up costing themselves SO much more than they "save". You need a good mortgage guy, you need an attorney, you need an home inspector, and IMO you should hire an agent.

You say you "I know I found a good investment property", do you know what the current pricing trends are? do you know what the average days on market is?, is that rising or falling? (it's rising in almost every market) If you renting it out do you know what the market rent is? how hard it will be to rent? what % to assume for repairs? what % to allow for vacancy? how much your closing cost are going to be? how you can get the seller to pay for them? The list goes on and on, yet you don't even know the question...how could you know the answers.

Save yourself some real money, hire a professional to represent you as it will be the best money you ever spent.
__________________
The Suburban House Hunters Team would like to thank REW members for past referrals! We are never to busy to handle your Chicago area referrals.

Always looking for quality unique content for our real estate agent blog, PM me if interested in writing a post.

My thoughts on the Sarasota Association of REALTORS actions.
Reply With Quote
Old 06-11-2005, 08:14 AM
ResaleBroker's Avatar
ResaleBroker ResaleBroker is offline
Real Estate Webmaster
 
Join Date: Jun 2004
Posts: 4,726
ResaleBroker is on a distinguished road
Default Re: Money, Contracts, and FSBOs... oh my.

Quote:
Originally Posted by NYBirdDog
No, let me rephrase. I know I found a good investment property.
In your opinion, what makes this property a "good investment"?
Reply With Quote
Old 06-11-2005, 02:16 PM
Homesurfer's Avatar
Homesurfer Homesurfer is offline
Professional Contrarian
 
Join Date: May 2004
Location: Orange County, California
Posts: 786
Homesurfer is on a distinguished road
Send a message via Yahoo to Homesurfer
Default Re: Money, Contracts, and FSBOs... oh my.

All you big tough Realtors are picking on the amateur investor. Naughty.

For others reading the thread, it is very obvious this guy doesn't know what he is doing. If he knew what he was doing, there would be no criticism. Of course, he wouldn't have posted with such an elementary question.

First, every elementary real estate investing book has a simple contract in it. That doesn't mean it is a good contract, but it is better than nothing. Additionally, most hand-written contracts have some fatal flaw, usually something that is missing, that a good attorney can shred in instants.

Second, buying a house isn't like buying a washing machine or a car. As one of the posts above mentions, there is a LOT of other stuff that should be in the contract.

Third, he says he found a great deal, then proceeds to say that he is going to offer $45,000 less than the asking price. Obviously, it is only a great deal if the seller is willing to accept the offer. That is a "potential" great deal, and the potential is actually pretty small.

That's just the beginning. It takes lots of constant hard work to know what one is doing in investing. Some who go looking for the "get rich quick & easy" schemes learn by losing money on their first deals, since they didn't learn by patient hard work.

Finally, I think it is a bogus post, more interested in getting attention than in resolving a problem. If you look at the poster's web site, it attempts to give the impression they know what they are doing. But the question indicates they don't.

My opinion.
__________________
Terry Light - Professional Contrarian
Office Phone - (949) 305-7995
RealEstateBytes.com
Real Estate Encyclopedia
Author for RealEstate ABC (Creator, too)

Last edited by realestateabc; 06-11-2005 at 02:24 PM.
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



For our members

Main Sections

IDX Coverage Areas

Spiders Welcome

All times are GMT -7. The time now is 10:22 AM.


Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2008, Jelsoft Enterprises Ltd.