Should i go about getting a deal this way?

Question

Hey Guys,

I have a question.  I would like to avoid putting a property under contract and having to back out if i cannot find a buyer. I know i may lose some deals , but being a upfront and honest will help my RE business. Do you think i should just come out and let the seller know that i'm not going to be the one buying their property, but i have investor friends that pay cash and might be interested in purchasing your home as soon as possible. This way i can do an option to purchase agreement and start looking for a buyer. Once i find a buyer i could then do a purchase and sell agreement.

Do you think this will work or should i just put the property under contract and hope to find a buyer?

George Maka · Answer

@Moe Williams

If you are that worried about finding a buyer, I would go back to understanding what a deal is in your area. If you have a deal under-contract, but no one is willing to buy it, then it's not really a deal.

To answer your question though, yes, always be honest with the seller. I usually say, either myself or my partner will be buying the property, which is true.

Thanks,

George

Larry Turowski · Answer

I suppose that would be true if you had a non-exclusive option to purchase. But what's the point in that?  It just says you have agreed on a price. Why not just shake hands?

Moe Williams · Answer

@Clay Smith Thanks for the info i appreciate it.

Clay Smith · Answer

A real estate bird dog (deal scout or real estate jobber in some circles) is someone who gets paid a referral fee (based on a joint venture agreement with a real estate investor) to locate distressed property deals and prospects.  not much different than a wholesaler.

As a real estate bird dog, you get paid to share motivated seller leads or distressed property leads for which active real estate investors are willing to pay.

I know from personal experience that it's one of the most practical ways to pick up the distressed property investing education you'll need if you plan to get into flipping houses as a business.

It's also especially appropriate when you have very little money to work with and very little market knowledge or confidence with which to get money.

Moe Williams · Answer

@Clay Smith Hey Clay,

Thanks for the feedback. I will certainly look into that, but wholesaling is where i have my mind set. Just looking to get educated on it before going out and making deals. I believe i have a better understanding and BP as helped tremendously.

Moe Williams · Answer

@Larry T. Hey Larry,

From my understanding the seller will still be able to do his/her own marketing and accept other offers. which wouldn't tie up the property. Is that not true?

Moe Williams · Answer

@George Makakaufaki Hey George,

Thanks for the feedback. I think i have a pretty good understanding of what a deal is, but i guess am just thinking "what if". I understand where you're coming from and does make sense. I guess it all depends on the type of deal and yes honest is always the best policy. Thanks again.

Clay Smith · Answer

Moe, call some local investors and get their formula for "what a deal is".  Then try bird dogging a deal instead of wholesaling.  It will go so much smoother.

Be up front and tell them what you intend to do....realtors don't sell properties in this condition.   That is why they called you back in the first place right?  You need a 2-3 month exclusive and in return their property will not be "on the market".  This will not hurt their days on market (DOM) statistic so there is no risk to them if they decide to go the MLS route later.

Larry Turowski · Answer

@Moe Williams Your option to purchase would tie up the property as much as a purchase agreement.  Just be up front, as @George Makakaufaki said.

Joe Villeneuve · Answer

What @Moe Williams said

Joe VilleneuveREcapSystemA2REIC

Should i go about getting a deal this way?

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