How open are you with sellers?

Question

When you visit with the home owners do you openly tell them that your an investor?

That your going to find them a buyer?

The reasoning behind your offer?

Thank you

Michael Quarles · Answer

Only of you are an investor. Honestly is clearly the best option in a negotiation.

Heck I tell them things like.

ASSIGNABILITY: Buyer may assign this Agreement.

RESELL: Seller authorizes the Buyer to enter into a sales agreement to resell the property during this escrow period. Seller is aware that Buyer intends on reselling the property for a HUGE PROFIT. All profits made by Buyer during this transaction relating to the reselling of the property are the sole interest of and solely owned by the Buyer.

MARKETING: Seller authorizes Buyer to market property during escrow for Buyers benefit. Marketing is defined as, but not limited to, placing the property for sale in the Real Estate Multiple Listing Service (MLS), advertising in the Newspaper or other periodical, and placing a for sale sign on the property.

Liquidation Damage Clause: If Seller decides to terminate this transaction at any time prior to close of escrow, he/she needs to give written notice of intention to cancel to Buyer. Upon receipt, the Buyer has the option of enforcing any one of the following three alternatives. By his/her signature herein below, Seller specifically agrees to the provision stated in this paragraph: (1) Buyer may cancel this Agreement, (2) Buyer may insist upon the specific performance of the Seller under this Agreement, or (3) Buyer shall be entitled to receive from Seller a total sum of $50,000 or 25 percent of the contractual price, whichever one is greater.

INSPECTION OF PROPERTY: Buyer shall have until the close of escrow to complete all Buyer investigations of the Property, approve all disclosures, and other applicable information, which Buyer receives from Seller and/or persons hired to inspect property on behalf of Buyer; and approve all matters affecting the Property, including but not limited to, the marketability of the property in order to determine the usability and feasibility of the Property. Buyer may in Buyer’s sole and absolute discretion, give notice of termination of this Agreement at any time prior to the expiration of the inspection period, and upon such termination, all deposits held in escrow shall be returned to Buyer.

NON-AGENCY RELATIONSHIP: A principal with Buyer is a Department of Real Estate Licensee. An Agency relationship between Buyer and Seller does not exist. Seller should seek advice from their legal council prior to agreeing to the terms of this Agreement.

CLOSING DATE: This transaction shall be closed and the Deed and other Closing Papers delivered in ? __________ days following the date of final acceptance or ? on _______________, 20_____, unless extended by other provisions of this Purchase and  Sales Agreement, or by written agreement of the Parties and also at the sole option of the buyer.

When you tell them your objective they don't care. They just want to sell. Many times I have had them tell me they hope I made a lot reselling the property...

Shaun Reilly · Answer

Michael's is great.

Pretty hard for someone to say that they didn't know what was going on with that kind of documentation!

Now if you don't want to go that hardcore the one thing from the original post I will say that you NEVER do is say that are going to find them a buyer.  That is unless you have a license and plan on being their agent.  Any other circumstance "finding them a buyer" is brokering a deal without a license.

Michael Quarles · Answer

Posting error

Michael Quarles · Answer

posting error

Account Closed · Answer

i tell them i am an investor

i tell them i have a partner that looks over what i am doing . i tell them depending on the property... we hold onto it to sell in the future, rent it out, or flip it(but they dont like to hear flip sometimes).

i dont tell them that i am going to find them a buyer unless they ask.

i show them how the numbers work and how i got my number. they need to know as an investor, that i need to make money too so they wont recieve full market value

Michael Chase · Answer

This is a great topic, I am a wholesaler and I had a seller that I found on Craigslist that was wanting to sell his property so that he could move back to his native country. His property was paid off and he hated that he had to pay taxes on it (his native country did not make you pay taxes on property that you owned). Anyway, we built a good rapport when I visited the property and I made it clear that I wanted to buy it from him. When negotiating price, he was pretty firm with his asking price but I negotiated a price that was a win-win for both parties. I disclosed that I worked with a few other investors and we were cash buyers. In the end I had to double-close b/c if he had seen that I had assigned the deal for a profit and made $ on the price that I negotiated him down to, it would surely had been an issue.

Pete T. · Answer

I dont wholesale, but I would think being open and upfront usually works best in all cases.  Not only is it the right thing to do, but it isnt going to change anything and help you identify sooner if you are dealing with someone that can meet what you are looking for.

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