Wholesale deal from a realtor?

6 Replies

Do you have financing and/or cash in place with the ability to close on the property on time if you can't find an alternative buyer? If you do, and that is your intent, and you end up assigning the contract to another buyer for valid business reasons, then it probably would not be a problem.

If you don't, most real estate agents are savvy enough to see through the shell games and protect the interests of their seller.  They are unlikely to tie up a property with an unqualified buyer.

Unless you are well connected with cash loaded investors all deals are in cash or hard money closing ~3 weeks after getting a contract accepted. Otherwise, you are stuck with a house or minus your EMD trying to back out.

You can submit a contract which lists you and/or assigns as the buyer and has a termination option.  

As Jeff Copeland stated, most realtors will advise their seller to reject the contract but it does not hurt to submit one and see what happens. The worst you will be out is a little time and effort.

You also have to consider how much they will let you show the property.  The standard TREC contract states "Seller shall permit Buyer and Buyer’s agents access to the Property at reasonable times."  That is kinda vague. If the seller is living in the property, you will probably exceed the "reasonable" access if you keep parading people through the house.

I think the trick will be getting the realtor to write an assignable contract. No smart seller would want that. There could be some ways around that. Maybe write in in the name of your LLC and sell the LLC to the new buyer. Maybe the realtor is not smart enough to advise their seller client not to take an assigns contract.

Is the house vacant or occupied?   As someone mentioned above showings might be tough if occupied to your flip clients....unless it is such a great deal.   People buy homes all the time without seeing them inside....so maybe you flip with showings only after contracting.

It's all work and not easy, but potentially possible.

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