Info On Investors
I'm not sure if I'm asking this in the right forum but........
Myself and some of my associates are considering the purchase of a property. Before we purchased the property we wanted to find interested investors to resale to for quick flip.
We have one Investor who is willing to give us an offer but he wants exact information on the home including the current owner.
I guess my question is, is there any type of contract or a certain way to get him the info he needs to make an offer and at the same time prevents him from side stepping us.
Thanks ahead time for the help.
The classic solution is you get the home under offer so that the seller is committed to a deal with you.
Then you sell the deal on to an investor.
Now, this is really a simple answer and it glosses over a lot of details.
Does the group have the funds and the credit to actually close on a deal if that made sense? Have you considered using options?
John
[addsig]
The document you are asking about is called a non-disclosure/non-compete agreement. I'm sure there are forms around someplace but i've got to tell you that they are notoriously porus. As a rule all the other party has to do to avoid the agreement is show that he could have gotten the information from some publicly accessable source.
Active is right-- get it under contract first.
Ive met many people with integrity in this business. Then ive met some jerks. John is right. That ought to raise all kind of flags.
If you put the purchase under contract, you will want to make sure you have an alternative exit strategy in case the person you plan to flip it to backs out.
If the deal is good and you want to keep it even if you don't flip it, I will always record some sort of memorandum of agreement on the title to tell the whole world I have an interest in this property. This is signed by the sellers at the same time they sign my purchase contract.
Then I close as soon as possible, getting that deed recorded (to me or the new buyer, again as soon as possible).
If your intention is to walk away if the deal goes South, (and you should let the sellers know this might happen) then I wouldn't recommend recording anything. Or if you did, make sure you release it in the event you walk away, so the title is clear for the sellers to do something else with the property.