Posted by April Cool on May 03, 2006 at 09:52:19:
My 5 year old daughter has said that her real dad put his finger in her butt(when shewas 3). I just went to court and the courts took her from me because I was abused as a child and they (the courts) think I made my daughter say this even though there was semen found in her underwear.The courts gave my ex-husband full cousidy. I have found a really good attyorney byt I dont have a lot of money can you please help me find some to save my child.
How to Protect Yourself in Wholesale Deals? - Posted by Chris
Posted by Chris on April 13, 2006 at 20:30:06:
I’m starting to do more and more wholesale deals. I get them under contract and then assign to rehabbers or builders.
However, I’m uneasy about going the “assignment” route for fear that eventually someone is going to try and go behind me and tell my seller to just cancel contract (if they can find a way) or try to let it expire, or something. However, don’t want to have to pay all the fees of double closings all the time.
How do you guys (who are actually doing deals) protect yourselves in these wholesale deals?
Re: How to Protect Yourself in Wholesale Deals? - Posted by Ken-Orlando
Posted by Ken-Orlando on April 14, 2006 at 19:16:25:
You can cloud the title with an Affidavit of Purchase Agreement or Affidavit of Option depending on your agreement with the seller.
Re: How to Protect Yourself in Wholesale Deals? - Posted by Natalie-VA
Posted by Natalie-VA on April 14, 2006 at 17:38:39:
Chris,
I protect myself in my wholesale deals by working with the same investors over and over again. I’ve got one that will buy them based on my word without even looking at the property. My point is to have a level of trust between you. I could certainly make some more money shopping the contracts around, but I seem to lose when I get greedy, so I stick with the sure thing.
–Natalie
Re: How to Protect Yourself in Wholesale Deals? - Posted by lukeNC
Posted by lukeNC on April 14, 2006 at 05:27:46:
this is what attorneys are for. Once you start building up your cash position, you’ll eventually need to hire an attorney to protect your interests.
Re: How to Protect Yourself in Wholesale Deals? - Posted by Elizabeth NJ
Posted by Elizabeth NJ on April 13, 2006 at 23:19:34:
Chris,
You sent me this email offsite:
“Good stuff, Would you mind sending me a copy of the contracts you use so I can modify for myself?
Thanks in advance,
Chris”
You asked me to send you my contracts and I’m sorry to tell you that I can’t do that for several reasons. Most importantly, the law varies from state to state and your attorney can advise you as to what must be legally included in your contracts for your state. The other reason I don’t share my contracts is that I consider them to be proprietary. They’re not forms, but rather documents I prepared to suit the needs and requirements of my firm and you must do the same for yourself.
While you may consider this to be a laborious process, once you’ve tailored your contracts to suit your needs and your attorney has approved them for legality, you’ll be ready. Also remember that while contracts state what you will do, it’s equally as important for them to state what you won’t do.
There are many free forms here including contracts. You can access them or ask your attorney for a form for your state.
I wish you all the best.
Elizabeth
Re: How to Protect Yourself in Wholesale Deals? - Posted by Elizabeth NJ
Posted by Elizabeth NJ on April 13, 2006 at 22:28:47:
Don’t assign your deals, continue with your double closings. Your closing costs are the cost of doing business and you should factor them into your selling price. I don’t know what you’re paying for at closing but my contracts say what I will and what I won’t pay for at closing. On the other hand, there have been many times when I’ve paid my seller’s attorney’s fees for closing because it sweetened the deal for me.
When you assign a contract, you lose control of the deal and you’re pretty much in the back seat the rest of the way.
When you buy with a contract and sell with a contract, you’re protected both ways. If your contracts are properly written and contain specific required legal clauses, then no one can do an end run around you. No builder or investor would risk their reputations by trying to push you aside.
I think you should be more concerned about using contracts that fully and clearly state your intentions. For example, if I sell to a builder or another investor, my sales contract specifically states that no financing provision is conveyed to my buyer because he’s buying all cash. It puts the onus on my buyer to come up with the money quickly (30 days) or he’s out of the deal, no extensions [also stated in the contract].
There are some good contract forms on this site, or perhaps you already have one you use. Take some time and carefully review the language. Modify the contracts to suit your terms and when you’re satisfied with what you have created, have your attorney review it for legal compliance, and use that contract for your deals. You should have a purchase contract and a sales contract that you can pull up and just fill in the variables for each specific deal. And make sure that the only back doors in these contracts are just for you.
Good luck.
Re: How to Protect Yourself in Wholesale Deals? - Posted by Greg (FL)
Posted by Greg (FL) on April 13, 2006 at 21:52:40:
Chris,
There are several easy ways to properly protect yourself on these deals. Where are you located? I’m always looking to expand my business with reputable wholesalers.
Best Wishes,
Greg (FL)
Re: How to Protect Yourself in Wholesale Deals? - Posted by Joe Kaiser
Posted by Joe Kaiser on April 14, 2006 at 06:04:04:
Please explain . . . I don’t follow.
Joe
Re: How to Protect Yourself in Wholesale Deals? - Posted by rick mcbride
Posted by rick mcbride on April 14, 2006 at 24:07:10:
Greg, I am in FL, Volusia County, where are you in FL?
what i should have said… - Posted by lukeNC
Posted by lukeNC on April 14, 2006 at 09:24:53:
doesnt really apply to wholesale deals…the profits arent huge so there really isnt much to protect.
I’m thinking about that deal where you stand to make a quick $40k or so, and that seller begins to have second thoughts.
Re: what i should have said… - Posted by Joe Kaiser
Posted by Joe Kaiser on April 14, 2006 at 21:56:06:
Luke, sorry, but still doesn’t make sense. Sometimes, when there isn’t
much to protect, that’s the very reason you must.
And the thing about “doesn’t apply to wholesale deals . … profits aren’t
huge.” Totally disagree. You just haven’t figured out how to do huge
profit wholesale deals, I suspect.
Joe
money to pay an attorney - Posted by lukeNC
Posted by lukeNC on April 14, 2006 at 23:12:11:
Is what it boils down to.
Hopefully I can explain myself better this time.
Rarely if ever are you going to be paying an attorney to enforce your position on a quick little wholesale deal where you have put little or nothing down and stand to make a quick $5k or so. At least not in my experience. In fact, I never have. I still structure everything correctly on every deal.
If you have little or nothing in a deal (your own money or borrowed money) where you stand to make $60k or so? Much, much higher chance of having to get an attorney to eventually protect your interests.
No money or access to money to hire an attorney? 9 times out of 10 you’ll have to back out or be forced out.
I’ve done many big quick wholesale deals, but only after I had acquired cash and was able to outright buy my position in the deal, either from an owner or from a lienholder’s position. Nowadays, I can also pay an attorney, if necessary, to protect and enforce my interests.