How to make a real estate contract assignable?!

 How to make a real estate contract assignable.

In the old days you would write this in the Buyer Line on the real estate contract: Geoff Nowlin and/or assigns.   The and/or assigns does work legally and as it relates to contract law.  The problem with and/or assigns is that it can put doubt in the Seller’s mind.  The Seller may think; who is buying the house really?  I don’t understand this?  I think I will take the other guy’s contract.  So instead of and/or assigns.

Use: “Buyer may choose how to hold title in any corporation, LLC, partnership, family limited partnership, sole proprietorship, trust, personally or any legal entity.  Vesting changes shall be done in advance of COE in order not to postpone the COE and are at Buyer’s discretion.”  

Notice that I did not use the words “and/or assigns”, that is on purpose.  Should the Seller be queasy or nervous.  If any Realtor asks; “What about this vesting paragraph?”.  You can simply say, we have not decided which corporation we want the property in.  We will get with our Lawyer and decide this before closing.  Which sounds perfectly logical.  

The truth is that you want this language in the contract so it makes your contract assignable at will by YOU!  In some States assignability is a check box.  Like California, so don’t check the box, just add the vesting paragraph to an addendum.  Remember, anything in an addendum supersedes anything in the contract.  In Colorado, the very first line of the contract says “NOT ASSIGNAMBLE”.  You simply add the vesting paragraph to the addendum and vola, your CO contract becomes assignable.  Happy wholesaling, call with questions.  

If you need to buy or sell a home, see us at www.5kflatfeelisting.com.  We look forward to hearing from you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor Brett Young, Cleveland Realtor

480-466-3737 (216) 703-5740

www.5kflatfeelisting.com by56083@gmail.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

How to wholesale real estate in six minutes

 How to wholesale real estate in six minutes.

Wholesaling a contract means selling your position in the contract.  Here are the steps

. get a property under contract

. find a buyer who would like to buy you out of it

. sell your contract to him/her

That is really all it is.  This video shows you the steps, the contracts and my fastest Student who got a check 1 day after learning how to wholesale real estate from me.  If you would like to embark on wholesaling, please give me a call.  I can teach you how to do it in 1 day. 

If you need to buy or sell a home, see us at www.5kflatfeelisting.com.  We look forward to hearing from you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor Brett Young, Cleveland Realtor

480-466-3737 (216) 703-5740

www.5kflatfeelisting.com by56083@gmail.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

High End Quadruplex cash flow

 High End Quadruplex cash flow.

Guess what?  High End Phoenix Quad’s don’t cash flow.  Duh, no one should be surprised by that.  This blog is a follow up to yesterdays.  Sellers of quad’s are hilarious.  They tell me baloney stories like

1. You can raise rents to 1 million per month.  Nope, you can’t.  There is a thing called COMPS.  The job of the renter dictates what they can pay in rent.  Every Seller thinks you can just magically increase the rent $500 per month.  It is just not so.  Try it for yourself.  Then let me know how it worked. 

2. They have 100% Occupancy.  What, no way in hell that is true.  Every time a tenant moves out, the landlord has to go in an repair/clean.  This takes a moment and by obvious logic, it is impossible to have 100% occupancy. 

3. If you put enough down it will cash flow.  Ha.  Duh.  That is true but that would eat up all your cash and ruin your ROI.  In my world, a property must cash flow near 100% financed or I am not interested. 

4. Cap Rates don’t count in this market.  Wrong.  Capitalization Rate (the amount of money the property throws off per year) is always, always, always important.  In my world, if it doesn’t throw off at least 7% to profit, I don’t want the building.  If you are like me, you got into this business to make money not to lose money. 

5. No evictions at my buildings!  Wrong, sellers try to tell me they never ever ever have to evict.  I just don’t buy it. 

6. No repairs at my buildings!  Really!  All your tenants work at Home Depot and can fix everything without calling the Landlord.  I don’t buy it. You would be smart to 

7. No Reserves!  Reserves are moneys set aside for the huge repairs.  Like the roof, driveway, HVAC, etc. Smart investors hold back 5% of the rents in a separate account for these big purchases.  Is it not true that the earth is consuming a piece of the roof every day?  Sure it is and you had better plan ahead for it. 

Summary, don’t fall for Sellers claims.  Do you due diligence and crunch your number to the dollar.  If you need help doing that, feel free to call.  Would be happy to help. 

If you need to buy or sell a home, see us at www.5kflatfeelisting.com.  We look forward to hearing from you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor Brett Young, Cleveland Realtor

480-466-3737 (216) 703-5740

www.5kflatfeelisting.com by56083@gmail.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

Does a Phoenix Quadruplex cash flow?

 

Does a Phoenix Quadruplex cash flow?

The fast answer is NO!  Cash Flow is defined as 

Gross Income

• Vacancy

• Expenses

= Net Operating Income

• Debt Service (your payment)

= +/- Cash Flow

We looked at low end Quads and could not cash flow any of them at all.  Looks like the Californians have totally converted our market to that of CA.  

My client was desirous of moving into 1 unit and renting the other 3.  Great idea.  A Buyer generally must stay in their Primary Residence (if they get a loan) for at least 6 months.  This client wants to buy a new Quad every 6 months until she has 20 Quads or 79 rentals.  Her plan then is to sell the 10 dogs of the portfolio and pay off the 10 good units.  Again, a great idea.  She would need to move twice per year but so what.  Maybe she leaves the furniture and rents those units as furnished.  Her theory is “what am I willing to do to be a millionaire”.  Love her attitude. 

We had lunch with Steve Oliver of Cardinal Financial.  They are a Mortgage Broker, Mortgage Bank and a Portfolio Lender.  He can get her into a Quad on an FHA 3.5% down and he can fix her credit as well.  The problem is, he can only do it once.  Then my client would need to get a traditional 80/20 loan.  

Steve Oliver

Cardinal Financial

Loan Officer

(602) 625-5995

steve.oliver@cardinalfinancial.com

My clients dream will not come to fruition in Phoenix.  Our only choice is to switch Cities.  More to come on that. 

If you need to buy or sell a home, see us at www.5kflatfeelisting.com.  We look forward to hearing from you. 

Buyers get: Sellers get:

FREE Home Inspection 5k Flat Fee Listing

FREE Termite Inspection FREE Home Inspection

FREE Home Warranty FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor Brett Young, Cleveland Realtor

480-466-3737 (216) 703-5740

www.5kflatfeelisting.com by56083@gmail.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona