North Vancouver, British Columbia · Member since 2017 · 3 posts · 1 vote
Hello,
I am completely new to real estate investing. I live in Vancouver, BC, Canada. This may be a stupid question, however, I'm curious. If I was to make an offer on a place, and the seller and I came to an agreement on price. Can I lock up that property for a few months, while I look for a partner/investor to jump in with me? If I cannot make that situation work, would I be able to walk away scot-free?
This is a common approach but in a hot market there is no reason for a seller to accept when other buyers are preapproved.
Making offers without financing in place does not make much scenes when investing. Investors should always have financing available for the very reason you state---great deals.
Deals are like busses, don't worry about missing one, another will come along very soon.
Investor · Scottsdale, AZ · Member since 2016 · 1k+ posts · 885 votes
9y
That depends entirely on how the offer was written up. The seller may want an option fee or maybe not. With the super hot market (over heated) in the Vancouver area, why would the seller want to do the transaction? It should be easy for them to just outright sell for cash. If they don't want to list for some reason or don't want to pay a real estate agent's fee, that would be understandable. However, you have a little risk if you give a lot of money for an Option fee (I always offer $100 but in your market it is unlikely to be accepted). If the market crashes, you could lose your option fee because you can't find a buyer, or maybe if you misjudge the house's value and you can't sell it for a profit, you have that worry. But, transactions like that are done all day long in Canada and the US.
North Vancouver, British Columbia · Member since 2017 · 3 posts · 1 vote
9y
I am doing that for the most part, however, every once in a while I come across a screaming deal, and I want to see if I can lock it up and use the specific deal to encourage an investor. The great deals don't sit for long, hence, why I want to learn to to lock them up.
This is a common approach but in a hot market there is no reason for a seller to accept when other buyers are preapproved.
Making offers without financing in place does not make much scenes when investing. Investors should always have financing available for the very reason you state---great deals.
Deals are like busses, don't worry about missing one, another will come along very soon.