DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE – REAL ESTATE FEED BY DEAN GRAZIOSI

As a real estate investor, you will be sticking to the script, or business, plan that you developed.  You will have a very good idea of your budget and of the criteria that will compose a workable short sale for your inventory. 

 

If you are working with one or more short sale agents, you must be careful that they do not waste your time.  Many agents just subscribe to the theory that you throw everything against the wall and maybe something will stick.  These agents can cost you time and money.

 

Being able to clearly describe the characteristics of a property that might interest you is essential as well as a good exercise for you.  When you converse with an agent about a property, these are some of the guidelines you may set:

 

·                     You are only interested in properties with one or two liens.

 

·                     You are not interested in properties that are in the midst of a divorce.

 

·                     You are not interested in properties that have Fannie Mae or Freddie Mac backed loans

 

·                     If there is a homeowners association, you want to make sure the property you are considering does not have outstanding liabilities.

 

·                     If there is a homeowners association you will want the name and contact instructions for the bookkeeper or accountant

 

·                     If there is a homeowners association, you will want to see a copy of the by-laws or prospectus.

 

·                     Is the potential property in the geographic area or neighborhood that you want?

 

·                     What repairs will definitely be needed to make the house livable?  You will have a contractor inspect the house but you most likely are not interested in a property that requires more than 20% improvement costs.

 

·                     What are the asking price and the amount of the mortgage?

 

If the agent can answer these questions to your satisfaction, you have a serious short sale agent working for you.  If you reject this property, make sure to explain why, so that the agent is not discouraged and knows what to concentrate on in the future.

 

 

 

 

 

 

Smart real estate investors retain a real estate attorney.  Investors have one week to review the purchase and sale offer and one week to review loan terms and conditions.  Why gamble?  The right attorney can serve as consultant, tax adviser and listener.  You could do a lot worse.  Yes the attorney will cost some mo0ney, but the peace of mind is well worth the investment.   

 

Real estate investments are sizable.  Your investment is a serious, business transaction.  Attorneys who specialize in real estate law are worth their salt and can protect your interests, make sure you get what you expect while helping to negotiate with all interested parties.

 

Here are a few of the services your real estate attorney will provide:

 

·                     Review and explain the purchase offer and contract.

·                     Resolve all contingencies including issues with the structural inspection.

·                     Check that there are no covenants, easements, liens or other conditions that could affect the title.

·                     Prepare and register all legal documents.

·                     Review, explain and clarify the terms of the mortgage.

·                     Modify mortgage terms

·                     Calculate all adjustments to be made at closing including tax adjustments and utility and water credits.

·                     Review all documents prior to and at closing.

·                     Attend closing.

·                     Arrange title insurance protection.

·                     Make sure everything proceeds in an orderly manner and that you receive what you expect.

 

When selling, there is more to do than collect the money.  You need representation to accomplish the following:

 

·                     Review the purchase offer and contract.

·                     Help clarify all negotiations.

·                     Prepare the deed for transfer

·                     Procure power of attorney if you will not attend closing

·                     Attend closing

·                     Review all closing documents and statements

·                     Arrange for transfer of deposits

·                     Arrange insurance certificates

·                     Calculate credits

·                     Confirm and arrange mortgage payout.

 

Many of today’s homeowners would not be in the position they now find themselves had they elected to retain legal representation.  Can you imagine spending hundreds of thousands of dollars and entering into a financial commitment for 15 or thirty years without expert advice?  It doesn’t make sense, does it?