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I have an interesting one. I recieved an email from an owner in ME who wants to sell her property that she had bought for her mother in law. I filled out the seller questionaire and it looks good. From the pictures she sent me only cosmetic repairs, app $7,000
, Zillow has ARV $44,349
, She’s asking $18,800
, Any suggestionsOnly licenses real estate agents can sell properties for other people. And their license is limited to only certain states.
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, Unless you are a licensed real estate agent in Maine, you cannot sell this house for this seller.
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, But you can….
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, As an investor, you can buy houses then resell it. Or get an option to buy the house which gives you an equitable interest in the property so you can remarket it. You make the difference between what your contract is to buy is and what your contract is to sell is.
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, But this property is in Maine. You are in Virginia. Unless you have assets (local people who can go see the house and get comps and help get it closed), it will hard to do the deal from Virginia. It can be done. Without going there or having someone on the ground who can be your eyes and ears, it will be very difficult.
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, Let’s assume you got an option on this property. That can all be done via faxes or emails or Federal Express. But is the price the seller is asking even a good price? You would not know unless someone goes to inspect the house and estimates the repair costs. Someone needs to get comps so you can determine what a good ARV is.
, Sure, you could just write a contract to buy the house for the price the seller is asking for then you could keep your fingers crossed that it would work out. But it would be like driving at night without headlights on.
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, Let’s think it though. What’s next?
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, Someone needs to go take pics of the house and get a key.
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, You could run ads on craigslist to find a buyer. ( this is assuming you do not have a buyer’s list in Maine)
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, But who is going to open up the house to show it? If it is the seller, then the buyer will probably cut you right out of the deal and go direct. So, it needs to be someone else.
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, If you found a buyer who would pay more than your option contract, you’d need to write a contrac t to sell to the buyer. Are there any special rules that need to be in a contact in Maine? Is ti customary to close at an attorney office or a title company in maine?
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, Which title company or attorney would you use?
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, If you were successful in finding a buyer who would pay more than your option contact, then the attorney or title company could mail the closing docs to you to sign. There would be two sets, one from the seller and one for your buyer. The proceeds of the sale could be wired in to your account in Virginia.
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, Or… like Mike said, you can get the contract first then figure everything out. But you do need to think it through. Doing a deal long distance is completely different than doing a deal in your own backyard.
,Investors in high priced areas are lured in to other markets because of the low low sales prices. But there is a reason for the low prices often.
In Detroit, you can buy houses for $500. In Baltimore, you can buy houses for less than $2,000 but these properties are in WAR ZONES where you would not feel safe walking in the day time, let alone at night.
That does not mean that you can’t get an option then resell them.
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