Now, I know that wholesaling off mls is not recommended because the properties are listed at retail price. However, I was able to get an offer approved for LESS than the listed price. Now, I have 10 days inspection period and, during this time, I want to set up a double closing. Am I heading down a good road? How do I get the end buyer to agree to the b-c closing with out circumventing my offer?
Do you already have a buyer lined up on this?
If its a good deal at your price, the buyer shouldn't care at all and you should be paid for doing the legwork to get it in front of them.
Now if its a bad deal...well then be prepared to lose your option money.
Here's an easy way: Get them to pay you a non-refundable deposit that you get if they back out of the closing. Make it more than the option money you put down so that it is win/win.
Should I give them the address? What if they dont want to give a deposit?
You need to give the buyer the address to evaluate the deal.
Report back once you've at least done that.
As far as the buyer going around you, it's no different than a non MLS property.....when/if you cancel your contract at the end of your inspection period, it's fair game for everyone.....except when dealing with a MLS property, you usually can't get a 30 day inspection period. Also realize, this property had been seen by 100's of eyes, and you were the highest offer, so reselling for a higher amount may be a challenge.
@Tim G., will do.
Thanks for the tips everybody.
exactly, this is the same as any other property, treat it that way.
You HAVE to give the address. Not sure how its a deal yet. Keep hustling and be ready to get it in front of buyers.
Something to keep in mind, with this double close, is that you MUST have a cash or hard money buyer. Conventional financing wont work.
It's do-able. I did it 3 times last year when I had more projects on my hands than I wanted to rehab/flip at any given time.
I might have been in a slightly different boat - I was prepared to keep the property if needed. I marketed the properties during my 30 days before close and lined up buyers.
I had them give me a non-refundable EM deposit and we did a double closing at my title company.
One buyer tried to re-negotiate the deal two days before close but I told him to hit the road and I'd be keeping the EM. He came to his senses and closed as we originally agreed.
For those of you who did a few transactions through MLS, I'm curious to know how you set up the appt for the cash buyer to evaluate. Does your real estate agent let them in, do they bring their own agent, what if tenants need a 24-48 hr notice? Does any of these things affect your deals?
If you have an executed contract they cant circumvent your deal. Just have your end buyers execute a contract between you with a clause subject to your ability to close on the purchase.
Originally posted by @Phil Z. :
Just have your end buyers execute a contract between you with a clause subject to your ability to close on the purchase.
Can you elaborate on that just a little please. Would the clause say something like, "If I am unable to close on the purchase, then the end buyer will do so" ??
If you cant close to purchase, then the deal becomes null and void.
What you have is a contract to perform within the terms of the agreement. 10 days 30 days whatever you negociated. Until those terms come due you have the right to sell advertise for sale or assign it. Just be sure to immediately take action. Contact all possible buyers you already have in your lists. Advertise on craigslist, MLS whatever, just take advantage of the time you have. BTW I have gotten extensions on my terms more than once, so don't let it go even if your time is getting short and it takes a day or two longer. Be sure to stay in touch with your seller, many times they let a few days go. Ten days isn't much time though, if you don't have buyers you know already. Thirty days is much easier to work with.
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