Re: does flipping REALLY work … - Posted by Jackie in Dallas
Posted by Jackie in Dallas on December 08, 1998 at 21:48:41:
It REALLY does work!
One of the best ways to make sure it does close is to get a “substantial” (ie. >$1000) earnest deposit from your buyer, or perhaps the WHOLE assignment fee. That’s a lot of money for someone to just walk away
from. Make sure your contract with your buyer says if they don’t close on the date set, they loose all their earnest $$ – no extensions unless there is a problem with the title or the title company does not have the closing documents ready for some reason.
Ask for references from a title company your buyer has worked with - check them out by calling the title company. Ask to see some of the houses they have rehabbed. Make sure they are a REAL cash buyer.
One thing you definitely want to avoid is some jerk tieing up your contract so THEY can try to flip it.
There’s just not room in a flip for a middle man (or woman).
But if your buyer DOES walk (I’ve never had it happen) - you can use part of the earnest money as an “incentive” for your Seller to give you more time to find another “partner” – maybe split it 50/50.
If you have adequate contingencies clauses in your contract - plus make yourself liable for no more than your initial earnest deposit ( which should be less than $10) then you don’t have to worry about a law suit for specific performance.
Don’t forget the escape clause, " Contract subject to inspection and approval of property by Buyer’s partner." If you can’t find someone to sell the house to - you need to notify the Seller and the title company in WRITING, certified mail, that your partner did not approve. Per terms of the contract, you’ll get all of your earnest deposit back.
TAKE ACTION! TAME THE FEAR MONSTER AND JUST DO IT!