Posted by chris on June 18, 2002 at 20:24:48:
Joe,
You can always put a stipulation or “out clause” in your contract, such as “upon partners approval” This enables you to pull out if things turn bad. I wouldn’t sugest using this to much though as word will get around and your contracts will mean nothing. Hope this helps.
Flipping to rehabbers/investors…questions - Posted by JA - MIA
Posted by JA - MIA on June 18, 2002 at 11:57:35:
Getting ready to hit the streets and find property to flip to other investors/rehabbers.
When I find a property that looks like a winner, should I immediately put it into contract, or should I first converse with the investors in my “investors” list about the property (description, ltv, “the numbers”, etc. - BUT NO ADDRESS)? Or, must I first secure it with a contract before proceeding?
What if no investor becomes interested in the property, and I’m about to lose my earnest money, not to mention my humiliating face? This is why I ask about not obligating myself to a contract. Is that the risk I must take?
Do investors re-approach subject properties after another loses the contract and then execute a contract without us “middle” people in the way?
Just looking for some guidance…
Thanx, Joe
Re: Flipping to rehabbers/investors…questions - Posted by SCook85
Posted by SCook85 on June 18, 2002 at 22:17:31:
Joe,
First of all I will have to disagree with Chris’ advice. I am very much against an “out clause”,particularly the one suggested. The intent behind the clause is fraud. It isn’t contingent upon a partners approval. The TRUTH is that it is contingent upon you finding a buyer.
With having said that, you just need to make sure you do your due diligence and make good offers. If your offer doesn’t feel right, lower it until it is a no brainer. Don’t get ridiculous. I talked with someone today who wouldn’t make a $12k offer on a home worth $85k plus after repairs because they weren’t sure if anyone would buy it from them. At some point, you have to make offers to be in the game. If they are low enough, you won’t get many accepted. But when they do get accepted, the more you make and the easier you make it. Don’t get carried away because the more ridiculous your offers are, the less you will buy possibly down to nothing.
Happy Investing,
Steve