is it okay... - Posted by francis

Posted by jasonrei on November 05, 2003 at 09:31:34:

If you get the deal under contract, you wouldn’t necessarily have to ever tell the agent or owner it was being assigned. They could show up at closing and as long as they got their checks they’d be none the wiser.

I wouldn’t volunteer that my intent was to assign a contract, but if the agent is pushing to know where you are going to come up with the funds to close I can see where you might have to tell them you were flipping. Personally, I’d show them I had the funds in cash or I’d show them a preapproval letter from my lender. Under no circumstances should you lie, though.

is it okay… - Posted by francis

Posted by francis on November 04, 2003 at 23:48:52:

Hello everybody. A big thank you to those who answered my question of yesterday. Well quick update, I sent the agent a letter of intent which he hasn’t replied yet. Should I panic or is that normal? Oh yeah another thing…lets supposed I eeventually put this property under contract is it okay to send an assignment of contract to more than one retailer? Also in the letter, I told the agent that upon his acceptance of the offer, I would either make a check out or promissory note to him . Was that a rookie mistake?
Sorry for the long letter but I would appreciate any input.

Francis

Re: It is okay… - Posted by Ed Copp

Posted by Ed Copp on November 05, 2003 at 19:44:05:

to make a real offer.

You suggest a letter of intent, which most agents just ignore. It indicates to me that you are not at all serious, just fishin’. You offer the possibility of a note as earnest money, this indicates to me that you probably have no money.

Bear in mind that the agent can NOT accept your offer, in most cases. The agent can take your offer to the seller, that is what agents do. So why not just write up an offer for the agent to present to the seller. Put some real money with the offer for the seller to see. He will then know how serious you are.

Just my idea on assigning, do not offer to assign anything that you can not deliver, PERIOD. If you offer to assign a contract to me and I accept your offer then you will be expected to deliver. It makes no difference how many others you have made the offer to.

Re: is it okay… - Posted by jasonrei

Posted by jasonrei on November 05, 2003 at 08:53:32:

I have several houses for sale at any one time, and I’m always getting lowball offers and letters of intent. I never respond to them. If I’m dealing with an “investor” that wants to flip a house I cut it short. Without earnest money and reasonable contingencies I won’t entertain any offer- but I’m not a motivated seller.

As for the agent not responding, why panic? You should never panic about any offer you make. Some agents are slow. He and the seller may have decided to not respond. They may be busy and haven’t had a chance to respond. The agent may have decided to not present the letter.

If you negotiate a deal, there’s nothing wrong with presenting it to any number of investors.

As for offering a promissory note as earnest consideration, I don’t think that’s a good idea. In my area I doubt any agent would even understand that you can use something other than a check or money order for earnest money. It probably wasn’t a good idea to tell the agent you wanted to flip the property to another investor.

Everything depends on the seller’s motivation. If they are sufficiently desperate it might not matter how you present your offer, they’ll jump at almost anything.

No, it’s not okay . . . - Posted by Joe Kaiser

Posted by Joe Kaiser on November 05, 2003 at 02:31:57:

Every single point you question is a real problem that should be
addressed well in advance. It’s one thing to flip a coin and
correctly guess “heads.” It’s an altogether different thing to flip a
coin and correctly guess “heads” six times in a row. Miss on any
one of them, and you’re toast.

Joe

Re: is it okay… - Posted by cl2

Posted by cl2 on November 05, 2003 at 09:05:45:

When is the best time to tell the agent that you’re “assigning” your contract to another investor? I’ve read a few articles from this site and books that say letting the sellers know what your intentions are will keep them from coming back later saying they got taken.

Please explain…am I fully understanding this notion?