I am very nervous about tomorrow and negotiating the final price for a property I have been analyzing all week.
I know the seller wants to sell and soon. If and when we come down to a price that works, we sign a contract which I know. My question is about the verbiage, if I cant find a end buyer in "x" amount of time I can walk out of the deal. I'm assuming it maybe frowned upon to do this but I do want to make sure I'm covered.
If the contract you are using does not have an exit clause in it put one or more in there. Example-Subject to Partners Approval If the deal isn't right its not right if you cant find an end buyer you should be able to either back out or renegotiate with the seller. It is frowned upon but your not going to learn unless you try. Good Luck-Sam
I downloaded @Seth Williams 's contract pack and have been using a cancellation clause based on what is in his template. I haven't had any seller explicitly discuss it with / take exception in the few deals I've put under contract or make any issue of the clause when I presented an offer & contract (maybe they were too focused on the low price).
- CANCELLATION: Buyer retains the right to cancel this agreement by delivering written notice of cancellation to Seller before Closing Date or the date when the deed is executed and delivered to Buyer, whichever is earlier.
Try to get as much time as possible if its your first deal just so your comfortable. You can write in as many days as you and the seller discuss. On my first deal I gave myself 30 days and they had no rejections. If its a good deal you should know within a couple weeks. You go this
If you back out, prepare for a very short career, in my opinion. If you cannot buy, and cannot pre-sell, don't interfere with the seller's efforts to sell.
@Brandon Proctor a well written contract will usually say something like "if the buyer defaults the seller keeps the deposit as full liquidated damages." This limits you to loing your deposit. I have given as little as a $10 deposit when working directly with a seller (not listed with an agent) The risk to you if it doesn't workout is $10.
Now keep in mind you should not put something under contract if you are not $100% confident it will work out. Putting stuff under contract just because you have no risk and hope it works out is unethical.
Thanks everyone, to be clear I'm not attempting to screw over the seller. I'm going to try my best to sell the property and I have a few buyers that I have mentioned the propery to.
Now I have to negotiate to a price that works for everyone. I only asked just so I have all my bases covered.
Good Luck Brandon YOU Got This ^_^
Thanks @Brenda Lyons I'm super nervous.
Brandon what is sounds like might want to post details of the deal without the address so you get feedback on here from other wholesalers that are experienced and investor buyers on whether you have a deal or not.
You need to have a great deal. If you start out selling marginal deals to buyers you will get blackballed for the future as a mediocre wholesaler or one that does not know how to negotiate properly.
@Brandon Proctor Sounds like you are adequately prepared and ready to cause this deal to close as expected. Best wishes for the successful outcome you seek. Be sure to tell us about your successful completion of this deal. I bet everyone wants to hear the conclusion to this great story!
I agree with Victoria ^_^
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing