Double closing question

3 Replies

I have a quick question; I have a SFH under contract, and there has been some deed issues that have caused the closing to be delayed. No big deal. My intent was to rehab and flip, but I have since came across a cash buyer who I can perhaps wholesale it to.

The buyer wants to tour the property.  The RE agent who sold it to me is hesitant to go through the exercise of driving out to the property, being present while I show it, then perhaps having to repeat the process if the buyer wants to see it again.  I certainly understand his position as he feels that he has already sold it, why would he waste time and effort to show it again.  The agent is the best in my area and we are starting out with a good relationship.  I don't want to sour it.  Also, in regards to the agent.  Since we were supposed to close 30+ days ago, and the title company is working thru the deed issue, what is a tactful way to tell him that I have decided to wholesale it and I now want to do a double closing?

The bottom line is that I am looking for some talking points for my discussion with the Realtor.  I believe in full disclosure and honesty, but I also want to be knowledagble in my conversation with him so that I do not get shot down due to my lack of knowledge on the subject.  

Any advice would be greatly appreciated.

First, you better vet the "cash" buyer before you ever consider asking the listing agent to open the door again.

Regarding talking points, just be honest. You will close and then re-sell to another buyer. On the other hand, if you plan to assign the contract instead of close on it, that's a different matter. Nothing wrong with assigning, but in Texas you would typically still be responsible for closing if the assignee failed to close as expected, absent written approval of the assignment by the seller which releases you completely of any liability after such an assignment. 

Honesty is still the best practice but there's nothing wrong with telling him you have another investor who you would like to show the property too and you intend to compensate him (the listing agent or his assistant) for 30 minutes of their time.

Dear Friend for all the years of buying, fixing selling, I learned never to take a buyer to a deal that I have not close it. UNLESS you know the person very well. Seller who feels he can get a lot more will find 1,000,000 ways to get out of the deal. 

It is best you close the deal and than show the property to the potential buyer.

Great advice, guys.  I know honesty was always my plan, and always will be.  Just needed some words of wisdom.  I know now that this is probably not a great idea, and I need to get better trained on wholesaling before I try to throw this deal together at the 12th hour.

Thanks again!

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