Best Contingencies?
I am a beginning wholesaler in New York and would like to know what everyone feels the best contingencies are for New York contracts. Ones that protect but don't scare the buyer.
Some have said you only need one which is "subject to financing from ABC lender" but that seems to me that is for only a Hard Money angle for rehab. What about for flips?
-David
I always use these.
1) Subject to Buyer Inspection.
2) Make sure the contract is assignable to a 3rd party.
3) Subject to SUITABLE conventional fiancing not to exceed 8% (this way, you can't get a loan with interested for 18%, and they can say, well, you got financing, didn't you?)
[addsig]
Thanks. You always use all three? I would think many sellers would reject having so many contingencies. I didn't quite understand your last statement about financing. Do you mean that it is dependant on at least 8% or 15% financing?[ Edited by ddhamilt on Date 12/03/2003 ]
I know a lot of experienced wholesalers make it only contingent on finding financing.
Steve Cook is a large advocator of using only a financing contingency on contracts because he says that if it's a deal, then you will find money for it.
I'm also a strong believer in only having a financing contingency.
Good Luck,
John
yeah that's where i read about using only the finance contigency.
As long as your inspection goes well too, right? (i.e. you know what you're doing?)
[ Edited by ddhamilt on Date 12/03/2003 ]