REO Multi fam deal way below market value. Can I put in offer w no money or credit then pass off to re inves

In Buying Property - Asked by cody w. - Sep 18, 2010
Report Abuse
Answer this Question

Answer(s)

Garry F.
Broker/Agent
Laurel, MD

Do all the due diligence in the front before you put "any" contract in. Locate a good real estate lawyer that knows the market or at least multifamily properties. DO NOT put in a contract until you have all your "financially verified" information.
If the property is a 10 unit on the market for $275,000 and the seller is sticking to his price, move on. The same 10 unit can be bought for $200,000 and produces cash flow of $3000 a month before expenses. This might be worth looking into. Multifamily property is all about the numbers, no emotion whatsoever. Know you numbers and have a good attorney on your team.

Sep 18, 2010
Report Abuse
Ben R.
Lender/Mortgage Broker
Riverview, FL

You would probably be better served by entering into a finders fee agreement which includes a non-circumvent clause on it with an investor interested in the type of deal you are referring to. Generally you can receive between 1%-2% of the selling price and only have to refer that deal to an investor after signing the FF agreement. If this is a property within a 150 mile radius of Tampa, Fl. I make such arrangements myself.

Sep 19, 2010
Report Abuse
DFW R.
Owner/Investor
Plano, TX

most lender REO will require you to submit documentation that you are a qualified buyer. You will need to submit proof of funds and pre-qualifications. In my area, most REO do not allow you to transfer/assign the contract someone -- meaning no douple closing.
do you homework. YOu are probably better off charging investor a fee for finding the deal.

Sep 23, 2010
Report Abuse
Joe L.
Broker/Agent
Dallas, TX

Any broker worth his salt won't let his client sign a contract with such a clause unless you're a qualified buyer yourself. It ties up the property and essentially hands the listing over to an unqualified and unlicensed party to the brokers and clients detriment

Oct 21, 2010
Report Abuse
Joe L.
Broker/Agent
Dallas, TX

DFW-R as a Texan you should know that such a fee is illegal in Texas unless the party is a licensed real estate professional.

Oct 21, 2010
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question