What are possible pitfalls of using a REAL ESTATE INVESTOR to sell your home?
537865
Real Estate Investors by nature want to make money in purchasing real estate,so in answer to your question yes they want to purchase the property as cheap as possible.\n\nAbout the paper work, if you reside in a state where attorneys are used to close real estate transactions then yes you need an attorney, if not then use the normal closing agents authorized in your state. The investor understands the paperwork involved in most all real estate transactions since they don't want any problem in selling the property.\n\nThey will normally go to a professional closing agent such as an escrow or title company to handle their closings and complete the transaction. \n\nMost investors will give you a good deal based on the condition of the property, how much money he will have to put into the property to put it in a position to be sold.\n\nNow if you want top dollar for your property, you have the time to sell it, you are not forced to sell the property because of foreclosure or other reason,then an investor is not the best route to go. If you have the time, the house is in good condition to sell and need no major repairs either sell it yourself or go through a real estate agent.\n\nI hope this has been of some use to you, good luck.\n\n"FIGHT ON"
353989
Consult a reputable real estate attourney to find out...
1151881
I would not sell unless there were great reasons for me to do so. I would still purchase investment properties. This is an excellent way of earning a living as well as gaining wealth.\n\nif you can refi at 50%-60% LTV or less and still have a positive for additional purchases that is a good strategy \n\nI would diversify my investment by investing in 2nd trust deeds and equity loans. The interest rates are about 10%-12%. \n\nYou can do the collection or hire someone to do the collection. There are computer programs available for you to purchase if you want to do the collection.\n\nThat way if the real estate market take  a swan dive for some reason you still have trust deeds that are earning money for you.\n\nI hope this has been of some use to you, good luck.\n\n"FIGHT ON"
1139041
It could if you don't get enough money from the proposed sale to cover all of the mortgages....or if the mortgage company doesn't agree.  It might be a good idea to consult a real estate attorney to get specific information for your situation.
619374
I wouldn't For Sale by Owner if I were you (unless you happen to be a license Realtor).  For Sale by Owner's only work 18% of the time - most just prolong the time it takes to sell their home, then end up hiring a Realtor anyways.
783796
In the last 15 years or so those of us in the mortgage industry have spent a great deal of time educationg our potential clients that they need to see a lender before they take any further steps towards a purchase.  In this, which is more of a purchase market than we have seen in several years, a diversity of sources is extremely important.  Many buyers have already been pre-approved for financing before they begin their search so what may have once been the best source for clients, Realtors, is no longer a gold mine.  \n\nWith a 20+ year history in the mortgage lending industry, there are several approaches I would suggest that may help you develop a wide base.\n\nDevelop relationships with several financial professionals, tax accountants, CPS's, financial planners.  You may see the preponderence of their referrals at times when Realtor business is down, that will help you avoid the "peaks and valleys" effect.  Maintain regular contact via brodcast email, holiday cards, articles you find that may interest them.\n\nDivorce attorneys are another excellent source.  Many of them do not underestand the long term implications a divorce can have on the parties and how important that the equity issues be resolved prior to the filing as well as the documentation requirements for those deeding out but remaining on title.  Again, regular contact is a must.\n\nMonthly mailings to a "farm" (a specific neighborhood) make your name a familiar one and most likely to get a shot at a refi or home equity loan as well as a potential new purchase.  You may want to team up with restaurants or stores convenient to the neighborhood to send out discount coupons for their services.  That always gets attention.   Keep your size realistic to minimize production and mailing costs.  Your title company's marketing representative is a good source for this information.\n\nAnd, even though they may no longer be the best source, Realtors ( a stable of at least 10 with another 3 or 4 always in development)  is a must.\n\nAbove all, make certain everyone you meet knows what you do for a living.\n\nGood luck.
33106
I wouldn't recommend it, but I'm a bit biased since I am a Realtor.  \n\nBut, with that being said:\n\n-Fill out a disclosure on your property. FULLY disclose any issues you've had with the house.\n-Buy some for sale signs.\n-Design some flyers.  Be sure to take digital pictures of the inside and outside of the property that highlight the features.\n-Decide on an ad budget, and spend your money wisely on advertising.\n-Hold the property open. Be careful...make EVERYONE sign in for security reasons.\n-Make yourself available OFTEN for showings.  If people call and you can't make it there on their schedule without a lot of shifting around, they'll move on.\n-Qualify potential buyers if they intend to submit an offer.\n-Decide up front that if it isn't working out, at what point would you use the services of a Realtor (depending on how quickly you need an offer)\n\nSelling by owner can be profitable, and if you're in a high turnover area, I would certainly say go for it.  If you're in a 'normal' real estate market, be ready to work pretty hard to sell the property! \n\nGood luck.  If you have more specific questions, feel free to email me at rodbaker@fwrealtor.com.
735868
Ask everyone you know if they know of anyone looking to sell their home. Real Estate is a "how long you've been in the business" kind of thing.  It takes a while for people to think of you before they think of someone else. Part of that is achieved by farming, some is advertising, but most is referrals.  The more people you've done business with the more people that get referred.\n\n----\n\nYou need to base it on where you are located. The guy from Singapore has some great ideas, but some of them are not legal in the US.  You cannot pay a referral fee to anyone in the US unless they are a Licensed Real Estate Agent.  You can be prosecuted by the Department of Housing and Urban Development.\n\nThe other post where they suggest sending postcards etc to 300 to 500 households a month is called farming.  However, it usually takes six months to a couple years for farming to start paying off - and it can be expensive.  But it is a good tool.
331516
probably not. though ask the realtor first.
218546
It is probably ethical if the buyer wants to -- as long as you are not attempting to squeeze the realtor out of her/his commission.  But a lots of parties like the fact the communication occurs through a third party -- it provides insulation.  It avoids arguments and later disputes about who said what.  The last point is important enough that you should not want to cut the realtor out of the conversation.  You don't want to have the buyer later claim you made all these representations when the realtor was not involved.
928996
Sounds to me like they are playing games with the mortgage industry.\n\nIf I were in your shoes I would be leery also.  \n\nThe biggest drawback of FHA is that your home may not pass their inspection and you could be forced into making improvements that you do not want to pay for.\n\nHow desperate are you to sell?   I would definitely question the inflated sales price (btw, you do realize this will effect the amount of transfer tax you pay, title insurance, etc. etc.).  If the purchase agreement states conventional mortgage and that is not what they are getting they are in breach and you should be able to terminate the contract.\n\nAs always, go see a lawyer to make sure of your legal obligations and rights.
57231
Today's realtor never cease to amaze me what they see as OK.  If the realtor is the agent for the selling party, how do you think the seller would feel if they found out, especially if the realtor is kicking back something else to the buyer in the first sale or the second sale.\n\nFIRST EDIT: I'm not saying that from the buyer's perspective it isn't a good strategy, but raises some ethical questions for me.\n\nSECOND EDIT: Do you have a realtor?  If not, they should be lowering their fees on the first sale for god's sake.  If they aren't doing that, you don't want them selling your house.
939489
Don't even THINK about selling a house by yourself! There are so many legal catches and loops that only a fool would sell their own house without any knowledge!\nYou could get sued & screwed; the buyer could find technical fault and... the list goes on and on - don't do it!!!!\nYou've been warned... (don't learn the hard way)!
708453
Pros\nTenants that pay off your mortgage\nDepreciation write-offable on your taxes (often leaving you with no taxable cash flow)\nCASH FLOW!!!\nThe buying price is based more on the operations of the property than what the market dictates (as in single family)\nThe building itself will often secure the mortgage with its positive cash flow.\nThe amount that is added in equity to your property every year is substantial with a property as big as 16-units.\nMore ways to add value and cash flow to the property than with a single family unit\n\nCons\nTenants (if you choose not to use a property manager)\nMaintenance (but that is the same as any property and you appear to be versed in that)\nThe selling price is based more on opertaions than what the market dictates (as with single family)\n\nGood luck
923890
There are a lot of scammers out there, so-called real estate gurus who will sell you a program outlining how to buy and sell real estate using absolutely no money, but those schemes are unrealistic, almost impossible, and illegal in many states.\n\nDepending on your credit and income, you can qualify for a no down payment loan for an investment property and the seller can contribute up to 2% of the sales price towards your closing costs. So you would need some cash for closing, depending on the sales price.\n\nRick\nwww.fairwaymortgagelending.com
522881
I know that in my town, I belong to a Real Estate investors group. SOme of us do fixer uppers and some provide loan money. Look in your local newspaper for meetings or groups.\nIt is always a good idea to build a network of people that invest in Real Estate.\n\nMy lenders will only loan if there is a 50% equity position and the loans are for about 12%, but if you are flipping them, the rate is somewhat irrelevant within reason.
171536
This is a tough one, but here is a suggestion.\n\nFirst I assume the owner has a loan that has a due on sale clause and cannot be assumed. Try these first if possible.\n\nNext thing if you work at it you can do this. It might be a long shot with each person, but you will eventually find someone willing. You need an investor. This isn’t something like finding one in a thousand like it might seem. A lot of people, at least 1 in 10 or 20 invest in real estate. So every community has a lot of investors. You are going to set up a deal that is too good for them to pass up and then show it to 25 people and one of them will go for it. Put an ad in the paper in the investor section something like invest in this lucrative real estate deal and you will have your phone ringing off the hook of people to try it out on.\n\nHere is what you want to happen. They will buy the house from the current owner, and they will lease option the house to you. Since the market is poor in that area you should be able to get a good deal. Keep in mind the reason they offered it to you first is so they can sell it for more than it is worth and avoid a commission on top of that. So any price they offer you will likely be way more than they need. Unless you are dealing with abnormally nice and fair people. \n\nSo lets assume the house is worth 90k to 100k for the illustration here. The range is if you want to sell it quick or let it sit a while on the market. Although the range might be larger the way you describe the area. My guess is the 18 months on the market is one house with a problem that the stubborn owner denies.\n\nFirst you need to be able to negotiate with the current owner. They can sell the house fast with an agent for 90k, of which 82k is what they get, 5400 commission plus 2600 taxes and closing fees. So you can offer 90k-5400 and it will be the same for them. They have to realize this is true so take time to explain it. If they agree that they would sell it for that then you would do best to put an offer in writing and write in the buyer as “your name and/or assigns”. The “and/or assigns” means you can assign the contract to someone else. The investor you will now search for. \n\nYou will need more time than average to close, which might trouble them(might need to raise the price a bit). Or, you may need to add something in the contract like this contract is void if the owner happens to find another buyer willing to pay at least $90k. This way they can still try to sell it while you put the deal together. They will get to keep your earnest money as well if you fail to buy the house, so put as little as they will take, but it does need to be at least $100 or so to be considered a legal contract. You might also add something like more earnest money, to the tune of $100 will be handed over each month to keep the contract good for up to 90 or even 120 days if they will go for it.\n\nNow you will try and find an investor. It has to be a good deal for them and of course you would like it to be a good one for you. Part of your pitch will be that you are trying to split the good fortune and that since you “found” the deal you want some of it. So they are going to buy the house for the contract price you negotiated of 84600. Then simultaneously lease option it to you to buy it for 100000 in three years, or however long you think it will take you to save up enough money and build up your good credit to buy a house. Presumably the house will be worth more than 100000 or you need to lower your price. Be sure this option contract gets recorded along with the other papers.\n\nThe lease part of a lease option works like this. You rent it for say 800 a month now, assuming this is market rent you will start renting it for 900 a month and 300 of that goes towards your down payment (all negotiable of course). So if you end up buying it you only pay 600 a month rent. If not then you paid 900. Good for both sides. You will also agree to handle all rep