Wholesaling: Protecting my Deal!

3 Replies

Hey there BP! 

I have a seller in north Florida who’s family member passed away about 5hrs away in South Florida. He doesn’t want to deal with going down, fixing it up and listing it. 

The property is vacant, paid off, lake front, and over 1000 of Living sq ft.

My question is, for me to send the address to investors in that area.. Would I need to have the contract already signed, with the seller, to protect myself from that investor going behind my back and making the deal with the seller? 

I’m trying to figure out a way to get an understanding of how much work the property needs, I’m just not sure the best route. 

Should I order an inspection of the property before I make an offer? 

Looking for a bit of guidance! 

Thanks! 

If you don't have a contract it is up for grabs and who comes to the owner with cash and a contract, first.

Write a Offer To Purchase, get it signed, try to put a small down payment as low as a few hundred dollars, bring the Purchase Contract to an escrow company and get the property tied up legally. Put in the contract you have 3 or 5 days to get an inspection with the right to cancel the contract.

You can pick up Offer To Purchase contracts at Office Depot or contact me and I will give you one.

The easiest way to protect the deal is to close on it yourself, and then resell. You control everything on the buying side at that point.

If you can't do that, then I assume you are going to assign the deal (I don't know how Florida works in that regard). In that case you should let the seller know that you are going to be assigning this contract to an investor. But do not contact investors until you have it under contract, unless you just really have no clue and need them to help guide you.

Once you have it under contract then really nobody can go behind you, or at least would have to wait and see if you cancel the contract before they did. Personally I think that if someone goes behind you on a deal that you put together, that they never would have known about if you hadn't contacted them and gone over it, then that's not someone I would want to do business with. 

For estimating the repairs, I would contact a few general contractors in the area. Try to vet them first and make it clear you're looking for investor friendly pricing. A contractor should be able to give you a good idea of what needs to be done if you are unsure of how to estimate repairs yourself.