okay here's the deal.... I have been dealing with this REO agent on a home in Middletown, NY, and I finally got the contract for that signed etc. While I was checking out her listings I found another home they are selling in Yonkers. I spoke to her about getting the contract for that and she said they wouldn't until Monday, since the office is moving and won't be up again till then. Is there anything that would prevent me (legally) from beginning a bit of marketing for the second property? Do I have to wait until I have the property contract in hand?
HI Markeilsha! Each state has different laws regarding this, so I'm not a lawyer and I'm not in your state. Technically you don't own the propery, so that's kind of a grey area. IMO: Being that you will have it under contract in 5 days, I would sit tight.
Jordan Thibodeau, Check Out My BP Blog | https://www.biggerpockets.com/renewsblog/author/jordanthibodeau/ | Podcast Guest on Show #74
If you don't have a contract, then you would be marketing the banks property.. I would wait until you have the contract signed.. Good luck!!!
Legally, no. Since you do not own or retain equitable interest or legal representation, you can not advertise the property for sale.
When I get a listing from a wholesaler that looks interesting I always go look for it on the MLS. If I find it and your price is higher than what's on the MLS (which is likely, since you're not likely to get a big enough discount to add your fee and then still be lower than the listing price) then I might just contact my agent and make my own offer. If you have it under contract I can't go around you. If you don't, I can.
Now, in reality if its interesting I've probably already looked at it if its on the MLS.
But the lesson is that if you don't have a property under contract a buyer can go around you. If its a private sale, that may be harder because they have to track down the seller. Its its on the MLS, its trivial.
If you're offering it at a price higher than the MLS price, you would lose serious credibility in my book. That's because you're not providing any value.
I know some wholesalers do have some success with deals off the MLS. But your real success will come from doing your own marketing and finding your own deals.
Jon Holdman, Flying Phoenix LLC
Agree with @Jon Holdman . You can't sell a house you don't have a contract on. Also, it does not make sense to sell a house at a higher price than what it's listed for in the MLS.
Whenever I get a house off the MLS, I get it a lot lower than list price and then I market it still below list price. By doing so, you provide REAL VALUE to your buyers.
@Jon Holdman I was thinking that, and I certainly don't want to lose a deal especially when I'll having something in writing on Monday. I'm just an eager beaver had my mouth all fixed for a tasty deal! Lol I guess that what's it's like when you're new. I'll use the time to work on my potential buyers list without directly advertising the property. Thanks again!
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