Any Problems On The Back End Of A "Subject To Deal"?
I'm learning all I can about his subject and have a question. Has anyone had any problems actually not getting their buyer to come through and the time limit is up on your deal with the original owner? Thanks in advance. Jimmy
Been there done that !
In your contract, please tell me you placed an out clause " subject to" so you could walk away.
Another thing I always include is I can extend the contract offering a certain $ amount as an enticement.
Example: Placed a home under contract, I had my out clause but didn't want to use it. I then used the contract extension clause, and started over selling the property. I paid the seller $500 extra as the profit allowed it. I had no problem extending the contract. I then resold the property within 2 weeks to a new buyer.
If you do not have the clause, Go to the seller, ask for the extension without giving details. Write up a new contract. Mr. Locke is the master in this subject so I will defer to him. ( bow , bow)
I hope my experience helps.
Alesia
Alesia,
If it worked for you then is sounds fine to me.
The only thing better is doing some demographic marketing and knowing how long it will take to sell the property. It will save you some money from having to include extensions.
Jimmy,
Glad to meet you.
If I want the property then I just close the deal, this way I have no problem with the buyer coming through on the deal at a later date. The key is do not buy unless it is a good deal and you can resell the property quickly.
Sometimes we as investors have a tendency to get the deal just to get the deal and pay for it later on.
By doing your due diligence you can nail down the length of time it will take to sell a given property, how much it will sell for and how much down you can get.
John $Cash$ Locke
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