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Real Estate Investing Articles
Real Estate Investing
- How to Get Wealthy In Real Estate By
Filling Out Paperwork!
Krista Goering
Wouldn't it be nice
if you could become a wealthy
real estate investor just by filling out some paperwork?
Well, you can! One of my favorite ways to make
money in real estate is to get a property under
contract and then find another buyer before the
closing date in the contract.
In order to do this
you have to be able to fill out
a real estate purchase contract (i.e., the
paperwork) correctly. You won't need a large
down payment or good credit to make this work,
but you do need to be a stickler for details when
you make your offers (i.e., fill out your real estate
contract). Have a real estate attorney review your
contract before you get the seller's signature.
Now that there are
a lot of foreclosures on the
market, I often get calls from families about to
lose their home. They want to sell quickly, but
their house needs repairs. In a situation like this,
I get the house under contract and then assign it
(that is, sign it over) to another investor who is
going to do buy the property, do the rehab and
put the house back on the market.
Let me show you how it works.
Imagine you're sitting
at a kitchen table in the
home of a couple you've just met.
Their kids are in
the backyard playing with
the dog.
They offer you a glass
of iced tea while you
look through their mortgage documents and
verify the amount they owe on their house.
"How soon will
you be able to move?" you ask
them.
The man and woman
look at each other. They
look at the piles of stuff in the living room -
everything from stacks of unopened mail, to
dirty laundry, to half a dozen used pizza boxes.
No one has cleaned
in months. The odor of
sweaty shoes stings your nose and the carpet
is fuzzy and gray from dust balls.
Don't even get me started about the bathrooms.
For anyone who works
with people facing
foreclosure, this is a common scene.
I see it all the time.
Something happened
here. One of them had
a medical emergency and they didn't have
insurance. Or she lost her job. Or he bought a
boat and then had to buy a truck to haul it to the
lake. They got behind financially and before they
knew what happened they couldn't make the
mortgage payments.
For a couple or three
months they really
thought they'd get caught up. But it never
happened.
So they gave up.
Now we're sitting
at their kitchen table. The
sheriff's sale date is just a couple of weeks away.
I'm here to buy their
house, save their credit and
help them get on with their lives.
But before we sign
a contract, I explain that
I need to show their house to the appraiser,
the termite inspector and to a couple of different
rehabbers to get bids on the work.
They agree.
I also ask them to
sign an assignment
document which simply states that they
acknowledge that another person may step
into my shoes and buy the property.
They agree to that, too, and sign the document.
As I leave, I put
a For Sale By Owner sign in
their front yard with my phone number on it.
Within the hour I
get phone calls from other real
estate investors who know the house is on the
sheriff's sale list. They want to view the property
and make an offer.
The following day
I show the house - in its
deplorable condition - to a couple of investors
who specialize in rehabbing property and
putting it back on the market.
The nice thing about
working with other
investors and rehabbers is that you don't have
to clean house first.
You don't have to
bake cookies for an open
house.You don't have to mow the lawn. You
don't even have to clean the bathrooms.
See, investors and
rehabbers aren't looking for
a house to live in.
They're looking for
structural problems. They're
calculating the cost of paint and carpet. Water
heater doesn't work? No problem.
The only "bad"
thing about dealing with other
investors who want in on your deal is that some
of them overstate (make that "lie about") their
ability to close quickly.
The guy who can guarantee
he can close the deal
before the date of the sheriff's sale is your guy.
You sign over your
rights in the contract to the
other investor in the assignment contract. He
becomes the buyer named in the contract - and
you drop out of the picture.
Your assignment fee
may be $1,000 - $3,000,
depending on what it's worth to the other guy.
Everything is negotiable,
including your fee and
when you get paid.
If you've never assigned
a contract to a
particular investor before, be sure to get your
assignment fee (cashier's check or money order)
upfront when you assign the contract.
However, if you've
had a good experience
working with a certain investor before, you
may agree to wait to collect your fee until the
closing date. It's up to you.
Now that you know
how simple it is to "buy"
real estate with no cash and "sell" it before you
own it, not having money, or good credit, or
access to financing can never keep you out of
the real estate investing game again. You can
become a wealthy real estate investor just by
filling out paperwork.
Article Source: http://www.articleshine.com
About the
Author:
Krista Goering is an attorney and real estate
investor, who has bought and sold more than
$4.5 million of real estate using the strategies
she teaches online. Find out how more about
Foreclosures at Foreclosures Now which is
at www.foreclosures-now.info.
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