Wholesale flipping/Agents - Posted by Lonnie Turner

import · October 23, 1998, 2:07pm

Posted by JPiper on October 25, 1998 at 17:37:41:

Hank:

I’m going to assume that you’ve never been through the qualification process prior to marriage. It can make a listing agent look like an amateur!

To avoid the qualification process of a listing agent I would simply inform them that you are aware that their fiduciary duties lie with the seller, that you have no desire to place yourself at a possible disadvantage in a potential negotiation by prematurely disclosing your financial information. I would go on to say that if you decide to make an offer, that you will make certain that they will feel comfortable with it.

JPiper

import · October 23, 1998, 2:07pm

Wholesale flipping/Agents - Posted by Lonnie Turner

Posted by Lonnie Turner on October 23, 1998 at 14:07:25:

How do you deal with listing agents when you are flipping wholesale to investors. I do not want the agent to pre qualify me beacuse I will not qualify but I do not plan on buying the property anyways. How do I get around this road block. Any suggestions will be appreciated. Thanks.

Lonnie in Seattle

import · October 25, 1998, 3:08pm

Marry one like Jpiper did - Posted by HankTX

Posted by HankTX on October 25, 1998 at 16:08:53:

I have trying to find a realtor for the last 3 weeks
that would work with me. I get ignored several
times after they contact me. Only possible
thing to do now, is to marry them just like Jpiper
did.

-HankTX(LeBeau)

import · October 23, 1998, 5:31pm

Re: Buyer’s Broker - Posted by Mr Donald (NORVA)

Posted by Mr Donald (NORVA) on October 23, 1998 at 17:31:05:

Buyer’s Agency is now an established concept across the US and Canada. Find a Buyer’s Broker near you. who will work for you, and not against you.

Use your Broker exclusive. You’ll be able to get a myriad of good, solid information for your research from them, including MLS info such as Short Listing (the Listing info), Listing Summary (“Comps”), plus Public Record info as well.

Just try not to overload your agent with work; only a few solid candidates will help. Best of all: Offer to help your broker in their office on the weekends. You’d be surprised how amenable some brokers will be.

Your payoff will be - unlimited access to the MLS and Public Records database while you’re there.

It’s a win-win situation…You don’t burden them with all your requests; You get all your research information; They get “no-brainer” commission checks each time.

import · October 23, 1998, 4:28pm

Re: Be careful. - Posted by Stacy (AZ)

Posted by Stacy (AZ) on October 23, 1998 at 16:28:13:

Hi Lonnie-

There are agents that will not pre-qualify you. This sounds like it may be the broker’s policy at that office.

But, there’s another consideration. A few weeks ago I posted a question regarding the ability to close. I focus on flipping wholesale, as well, and I was concerned that I knew from the get-go that I had no intention of closing on the properties I was placing under contract. What was I planning to do if I couldn’t find a buyer to flip to before my contract expired? Well, I was planning to allow the contract to expire and move-on to the next property. As far as I was concerned, my contract held the damages to my $100 earnest deposit, so what’s the worry?

I’ve since been enlightened by the experts on this newsgroup. First, letting the contract expire jerks people around. They think they’ve sold their property and are moving on, and then the floor gets taken out from under them. Plans go on hold. And, even with the appropriate weasel clauses in the contract, there is still a chance of getting sued for specific performance.

Second, not living up to your contracts can spoil your reputation in the local marketplace. That could be the most damaging of these effects.

So, now I will only place properties under contract if I could close on them myself, or if I am absolutely sure I’ve got a good buyer to flip to (good buyer meaning one that I know will close). This is more challenging, but at least I can sleep better at night.

There are other ways, such as using a contract for deed instead of a purchase contract, and also just being up-front with the sellers about what you are going to do and the risks of not finding a buyer.

Luckily, I’ve always closed on my flips so far. But I’m glad I got the advice before I got myself into a jam. Maybe in your case you have some good buyers you are working with. If so, your ability to close on properties yourself is not as important.

Stacy