Hi, I have been doing real estate reseach for sometime now, and a few months ago decided to get my license. Everything is going fine and Im learning things everyday. I want to step it up a notch and also become an investor.

Currently the NYC market is hot when it comes to brownstones and the like. I have the the opportunity to buy a fixer upper for less than 1/3rd of the renovated value. In fact, the owner is willing to let me quitclaim the property with $20,000 so I can go ahead and do what I have to do. My down payment to the seller is negotiable and he seems flexible on terms. If I made a deal with him for money upfront to have a quitclaim deed in my name to get a renovation loan am I doing this at a big risk? Renovation will run about 200K but property will be worth over $650K, being that it is a 3 family w/ store front.

I have ideas on how to go about this but need fast advice so I can strike while the iron is hot. Worst case scenerio is that I bring it into my agency, but I really want this as an investment for me.

Any advise appreciated. Thanks

After thinking more, since he doesnt owe money on the property i will have him do a seller carry over loan that way I get get a full warranty deed. That way he can also put a lien on the property. Then I can go shop a renovation mortgage.

Sounds good or what?

Don't get to excited,approach it as a numbers gameand make a decision that way.Have you checked the title and made sure he is the only one listed and verified his identity with a birth certificate or drivers liscense?

Have you checked the property for liens,judgements,unrecorded second,third mortgages,property tax liens and or irs tax liens,are the brownstones in a historical district?If so you might have to alter the renovation plans you had in mind or may have to get approval from the board on every renovation which could increase your carry costs and renovation costs.

Check the chain of title on the property to make sure there are not issues of ownership.

I would write offer subject to financing,clear title,satisfactory inspection,and no liens,judgements,back taxes,or enviromental problems with a backout period on your part.If you put anything down hold it in your brokers escrow account and do not give it to the seller!

good luck

What super realtor says is right. Before you give this seller a penney, do your due dilligence, or have someone search the title. Anybody can quitclaim anything. I can give you a quitclaim deed to the White House.