Best Way to Handle Seller and Buyer
I'm working on my first wholesale flips. How do I handle the buyer and seller during the property inspection process.
For example, I've got a property I can buy at $10,000 from a motivated seller. I've presented this property to another investor that has expressed interest in buying at say $16,000.
I get the seller tied up under a contract with a non-circumvention clause. But now I need to get the investor into the property for a preliminary inspection before she will sign the second half contract to buy from me.
What are the mechanics of doing this without the 2 parties knowing what I'm making and trying to go around me?
Put a clause in your purchase offer that you or your partner can have the house inspected by a third party.
Then when you need to show the house you can show it to your partner or you can show it to your handy man. Your handy man is just there to give you a bid on repairs.
Make sure your agreement w/ the seller is assignable and let them know that you may bring a partner who would ike to take over the purchase via assignment. Make sure to file your affidavit of agreement on the property at the court house.[ Edited by travisluedke on Date 11/22/2002 ]
There is somuch good info on this forum ...
anyway, Hi,
Hi,
I am in process of getting started with wholesaling as well. I am just not sure what to include in the purchase contract and what not.
I was wondering how much earnest money I should use when flipping and how long should I give myself before I get out of the contract .... any advise? Should I ask the investor for deposit on or deal?
thanks, Louis
For the deposit a little as possible.
For time as much as possible.
thanks for the advise ...
I have my hands on some pro-buyer Purchase Contract and it looks good. I was wondering if anyone can send me another Purchase Contract that can help me against bad investors(retailers). Also, any good Assignmment Agreement would be apreciated,
If so, you may email me at louismontes@yahoo.com,
thanks alot, Louis
Dear daveh,
I never have a problem when I want to flip a deal, in my agreement the seller understands that I will be showing the property to my financial partner (your investor). All my deals are subject to my financial partners (most times it's my wife) approval and inspection in my written addendum to purchase.
If the seller will refuse this type of agreement, I walk away. You are the one in control of the agreement process.
I would also suggest your investor sign an agreement to purchase subject to his/her inspection.
Their has to be some trust on your part although it needs to be limited in dealing with your investor.
If you can not trust your investor, do not due business with them.
I would be checking out your investor's reputation and the number of property units they have dealt with.
The other suggestions from board members are just great.
Just opinions from one investor stand point.
Welcome to TCI, we will overload you with info. Keep asking.
Best of luck, sound like you have a good deal in the works.
John Michael
Dear re4me,
How would I go about checking out an investors credentials before doing business with him - other than just asking him?
Cheryl
qbee777,
You can check through the courthouse and see how many deals they have ran through the past year, ask for references, preferably a banker or even take a drive by their properties.
Keep in mind that there is no guarantee no matter how well you check out an investor that thing may or may not go well. It's like renters, no matter how well you check them out your property still may be damaged by them.
[addsig]