I have a property under contract, it's 12 units and probably a good deal for a local investor, but it's remote to me and I have decided I don't want it. The problem is that my due diligence period has expired and I don't want to let my EMD go (I put more in this one because the market is competitive). So what are some ways to find a new buyer to assume the contract? • I posted on the BP marketplace. • I have asked my agent to tap his network. • I contacted a few investors (local to the property) that I found online. • The seller isn't interested in resetting the contract for another investor, wants me to simply assign the contract to someone else. If not for that, this would be over. • So far, I have chatted with about 3 interested investors, one did his due diligence and passed. What other ideas do you have? There should be buyers for this property, I know because I was outbid on several similar properties before getting this one. Obviously, next time I'll keep a better eye on the clock. This is a mistake I hope I'll never make again. Thanks!

@Jacob Marble if you go directly to the wholesaling forum there is a "sticky" post that stays at the top that talks about how to find buyers. You didn't mention Craig's list, you might try that. You may be able to negotiate with the seller to get some of your EMD back. At least that will lower the cost of your education on this one.

Check with the brokers of the other property that you were outbid on. Either that or you chalk this up as a lesson learned, I assume that you had no other contingency in the contract.

You might want to pay a commercial attorney to review the contract. Sometimes they can find OUTS that you didn't think about relative to title, or other items etc. even if due diligence has passed No legal advice given.

Thanks for all the tips! I'll start calling brokers directly today. I posted a Craigslist ad. I want to get out of the deal because I can't find solid numbers on repair cost and how those repairs would improve rent value. Other deals that I have found in other cities have better returns and I have found the right professionals to assess things in those towns.

Why did you decide you don't want it? Most investors will want to know the story. Have your agent look up buyers who have closed on similar properties in the area, especially those that outbid you. Look up Loopnet for agents who have similar postings and call them. Go to your local REIA and offer up the deal. Look for meetups in your area and do the same.

Updated over 8 years ago on 07/01/2017. Most recent reply

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Jacob MarblePoster

Rental Property Investor
Sandpoint, ID

Multi-Family and Apartment Investing

How to escape contract after due diligence has expired?

Jacob MarblePoster

Rental Property Investor
Sandpoint, ID

Posted June 30, 2017 17:23

I have a property under contract, it's 12 units and probably a good deal for a local investor, but it's remote to me and I have decided I don't want it. The problem is that my due diligence period has expired and I don't want to let my EMD go (I put more in this one because the market is competitive).

So what are some ways to find a new buyer to assume the contract?

I posted on the BP marketplace.
I have asked my agent to tap his network.
I contacted a few investors (local to the property) that I found online.
The seller isn't interested in resetting the contract for another investor, wants me to simply assign the contract to someone else. If not for that, this would be over.
So far, I have chatted with about 3 interested investors, one did his due diligence and passed.

What other ideas do you have? There should be buyers for this property, I know because I was outbid on several similar properties before getting this one.

Obviously, next time I'll keep a better eye on the clock. This is a mistake I hope I'll never make again.

Thanks!

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