1st Deal Alert !!!!

12 Replies

I have a 4-plex that needs work and is in a hot upcoming inner city area. Is there a template that can help me get the buyers the info without involving the seller so i don't loose my $$ part on the deal.  It needs work and she is asking 150,000. 

What info are you referring too? 

Are you looking to buy and hold, wholesale, or what?

i am working with the seller to sell, now i have an interested buyer that wants to know the information: address, price and checking the property out. how do i protect my part in the deal so they do not go to the seller directly and cut me out of the deal 

Research how to "wholesale" real estate.  Basically you negotiate a price with the seller and have them sign a contract for that price.   Then you find a buyer for a higher price.  You will have a certain amount of time to complete the deal and you usually give the seller some earnest money.  This is not an area of real estate I have ever done or am trying to get into so I can't give you the details.

@Brant Richardson   is correct (and I do have some experience in wholesaling).  Once you and the seller have agreed on a price, get the property under contract.  Basically, you will fill out, and have them sign, a contract for you "and/or assigns" to purchase the property at the agreed upon price.  Then you do an assignment contract between yourself and the buyer to get your wholesaling fee.  I use the Texas TREC contract between myself and the seller (obviously you should use one for Missouri) and the assignment contract I use I either got from here on fileplace or from another friend of mine (I can't remember).  If you would like a copy of it PM me.

It sounds like you're new to the investing arena, so rather than lose the deal and potential profit, you should seek out the assistance of an active local investor who can help you put the deal together so you can both make money.  20% to 50% of something is better than 100% of nothing. 

BUT, if you decide to go it alone (mistake!), here's some basics.

1.  get the property under contract 

2.  depending on state law, you may also want to record (in the official public records) a Memorandum of Option which gives constructive notice that you have an option contract on the property (seek legal advice prior to this step)

3.  you can require any interested parties to sign a "Non-Solicitation Agreement" which states they will not try to go behind your back and cut you out of the deal. 

4. Notice:  remember that should you ultimately assign a contract to another buyer, the assignment does not typically release you (Assignor) from your obligations under the contract unless your purchase/sale contract contains specific language regarding this matter or unless the Seller signs the assignment too. I'm sure it's different from state to state, but in Texas, this is often overlooked by investors. 

Thank you everyone. appreciate your help. I will probably not go this first one alone. 

@Guy Gimenez  broke it down pretty good there for you.  He and I deal with Texas laws and you have to deal with Missouri.  I don't know what might or might not differ between the two, so you need to check that out.  Legal advice is NEVER a bad thing.  Sometimes, especially when you're starting out, it seems expensive.  But, the consequences of not having it can cost a LOT more.  I wish you the best of luck on this, potential, deal.

Wholesaling is not the place to start, in my opinion

I have worked over many years experience in a non for profit organization with rehabs and new builds well over $30,000,000+. although i have not seen every transaction through. i have had many contracts, construction contracts, city and government reporting and many small community projects come across my desk. I have been involved in the numbers and transaction just not exclusively in the beginning. I have property management and real estate and construction project program coordinator experience. Also have received many certificates of training in home loan counseling and financing. I have just never actually completing any deals. Just file maintenance and inspections and coordinating the efforts to bring the projects together. I have recently joined a land bank advisory board and yet still do not take part in any acquisitions or sales yet, still coordinating the sales for seller (land bank) and buyer.  it is time i jump in..so wholesaling seems a great place for me to start since i do not have a real estate license. 

@Veronica Paez  it sounds like you'll do great.  Don't let ANYBODY discourage you!

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