Contract contingencies - Posted by Hollis

Posted by Vic on May 23, 2005 at 14:27:19:

Hollis,

I’m hardly a guru. But I do have experience.

You claim you have been doing this for 5 years, but don’t yet know what contingencies to put in a contract? I mean it’s pretty basic stuff. Most purchase agmts used by real estate agents already have the financing & inspection clauses built right into them. You really don’t need anything more than that, unless there’s a specific reason for it. Not knowing if you can close is not one of those reasons.

While you are correct about Murphy’s Law and having a fall back plan, that should not be construed as an excuse not to close on something because some scheme of yours (or any so- called investor) didn’t work out. In other words, if there’s a legitimate reason not to close, that’s fine. But putting something under contract & then not closing because you couldn’t find a buyer probably isn’t Murphy’s law. It’s probably paying too much for a property & then hoping to find a bigger succor.

Trying to put in contingencies to protect you in these instances is what I’m referring to. It’s kind of like, yeah cut me in on the action, but if it don’t work out, I want to bail out with no financial damage done to me whatsoever. It is not right or ethical to put contingencies in a purchase agmt. to protect you in instances like this.

In any event, I wish you the best.

Vic

Contract contingencies - Posted by Hollis

Posted by Hollis on May 21, 2005 at 15:48:48:

What are some contingencies that I can use as an investor to protect myself, if the possiblity exist that I may not be able to preform for whatever reason

Re: Contract contingencies - Posted by TH

Posted by TH on May 22, 2005 at 06:51:03:

“BUYER reserves the right to VOID the Contract and have earnest money returned if inspections reveal conditions that are unacceptable”

Re: Contract contingencies - Posted by Vic

Posted by Vic on May 22, 2005 at 05:50:02:

If you don’t know that you can’t perform, then don’t put it under contract. It’s that simple. It’s not fair to tie a seller’s property up like that on the hopes that you can get a pc. of the action. If you can’t perform don’t do it.

People who put these creative contingencies in contracts give the rest of the legitimate investors a bad reputation, when their scheme doesn’t work out.

If you’re dealing with a seller who’s not sophisticated, many times they will make plans based on the contract closing. Sometimes they hire moving crews, they set up closing for the house that they want to buy right after the so called sale with you is supposed to close, & all kinds of other things. Either you can get it closed or you can’t. If you can’t stay away until you find one that you know you can close no matter what.

Vic

If you can’t perform… - Posted by Kevin

Posted by Kevin on May 21, 2005 at 19:25:22:

Try that little blue pill, via**. They are great, and they don’t care about the reason!

Re: Contract contingencies - Posted by hollis

Posted by hollis on May 22, 2005 at 13:20:10:

TH, thanks for the information. Glad someone took me seriously, and didnt think I was being a dick and trying to muck up the works.

just was looking for a back-up plan just in case. Cause Murphy can show up anywhere, anytime, and f-up anyone.

Re: Contract contingencies - Posted by hollis

Posted by hollis on May 23, 2005 at 08:33:14:

Vic,

Thanks. But you know something, I use to shy away from guys like you. The REI Guru’s with the god-like ego of knowledge. After being in Iraq for a year, not any more.

listen up…cause here’s the deal. I’ve been doing this for 5 years, and have built a good business, and reputation. After putting my business on hold for a year and putting my life on the line to do my duty for that year, I’ve learned that the best laid plans are of mice and men, and not everyone reads the plans. And when Murphy shows up, forget about the original plan.

Murphy will show up at anytime, anyplace, and f-up anyone, and everyone. If you have not ran into Murphy. It’s not a matter of IF you will, its a matter of WHEN you will. And when you do, let’s hope you have a fall back position.