You write an offer to the seller. If they accept, they submit your offer to the bank with their harship package. If the bank feels it is to their advantage to sell it to you for less than the outstanding note, rather than paying the costs of foreclosing on a property, they move forward with your offer.
It is a little more complicated than that, but that's the process in a nutshell.
Email or call me if you want to discuss a particular property or if you want to setup a search.
You will find that we Realtors hate per-occupancy. You are taking a big risk that the bank might not allow the sale to happen, then you are in there with no chance of buying it. If it goes to foreclosure then the new owner might allow you to stay or kick you out. It's risky on your part. What is your lawyer saying?... more
Good luck on your adventure - whichever way you choose.
You'll need two invaluable team members.
1. A good contractor. You will need someone who is dependable, does quality work and will work for a fair price. In Chicago, these guys are hard to find. If a contractor has all these qualities, frequently he is already overwhelmed with work. Or he has decided to buy, remodel and sell buildings for himself.
2. A good lawyer. You will need a pro to guide you through the process of setting up your corporations that will be the entities that own your buildings. You will also need someone who can create the documents for your condominium associations.
Optional Team Member #3 A good tax accountant. For the following reason...
You should examine the distinct differences between buying and selling real estate short-term versus long-term. If you truly wish to become a real estate developer you need to be aware of the tax consequences for selling real estate for a profit in a short period of time.
One of the strongest benefits of owning real estate is that if you hold it long enough, your postpone your tax liabilities. And if you hold it long enough, your long-term gains are considerably lower than short-term gains. If you buy and hold - you'll be building wealth over the long term.
Plus, buying and holding pretty makes the process a no-brainer. If you hold onto real estate for 5 years, 10 years or even longer, it's nearly a certainty that your property will have appreciated dramatically. This is not always the case for properties you intend to sell quickly.
A good real estate agent *wink* should be able to connect you with competent vendors in all the areas I mentioned above. Other resources available include Angie's List website, the Building Owners and Managers' Association here in Chicago (BOMA) and talking to contractors you see working in your neighborhood.... more