All Forum Posts by: Mark Russell

@Account Closed

That’s what I need to see is what the law says. Thanks that helps a lot. 

Thanks all for the information. This post and all the responses have been super helpful. I found a buyer that is definitely interested but instead of wholesaling the deal we just agreed that he would pay me after closing and if he did not we would never do business again. He's a friend so I trust him to follow up and treat me right. I just didn't feel comfortable moving forward with wholesaling the contract until I understood texas law and the whole process better.

@John Thedford

I’m done hearing your bs. Take it somewhere else. 

@Jason D.

Thanks my friend. That makes me feel better. I just want to make sure I’m keeping me and my family safe from litigation or financial ruin. Much appreciated 

@Jason D. 

@John Thedford

Here is the response my re attorney gave me but she left me still feeling a little apprehensive. What do you think??

“Hi Mark,

We generally advise our clients to have a separate assignment agreement with the assignee. We have one on our website, however we are in the middle of updating it to reflect the new changes in the laws effective Sept. 1.

If you don't think you can find a buyer or are not sure if they will pull through, you could put something in to your underlying contract that says that the sale depends on financing/finding an appropriate cash buyer. That way if you cannot find one you may be able to pull out and say you don't have the financing. However, there is always the possibility that you can still get sued for breach of contract(not likely but always a possibility). I would try to find a cash buyer before you get the property under contract with the seller. Generally your buyer will be more understanding that the seller pulled out, rather than the other way around. “

@John Thedford I just got off the phone with my cash buyer. I’m showing him the property in the morning. He’s very interested. I posted the question because I’m apprehensive about my 1st deal and what could happen if my buyer fell through. I have every intention of seeing this deal through while being fair to my seller and buyer. Since you don’t like those clauses and you say they are bs, what would you suggest I replace them with to protect myself in the event my buyer can’t come through?

I am interested in flipping and my mentor told me to go and find a deal and I did, but I have talked to 3 different hml sources and can't seem to get financed because I don't have any money to put down right now. I don't want to just throw this deal away so someone mentioned wholesaling. I have a potential cash buyer so I have a contract here that is not yet signed. I am concerned that my contingencies have to be pretty solid if my buyer can't come through to purchase. How do the contingencies look to you???

This contract is subject to partners approval

This contract is assignable

Buyers obligation to purchase is contingent upon buyers inspection and approval of condition of property

Im here in Fredericksburg Tx and Ive just gotten my very 1st offer accepted. I do not have it under contract yet. Ive been talking with lenders and Im not sure Im going to be able to get the money to fix and flip. So I may have to wholesale this. Im not sure how the wholesaling process work so do I first get it under a standard texas contract and then get an assignment contract to wholesale to a cash buyer? How does this work??

@John Barr thanks for responding. I'm actually taking some pretty extreme action to go full time investing. My wife and I are selling our primary residence that has quite a bit of equity in it so that we can focus just on investing. I'm mainly interested in flipping right now but the goal is buy and holds in 2-3 yrs. But with the flipping my goal is to understand the business side as much if not more that just the motions of flipping a house such as generate leads, follow up, analyze, make a deal, rehab, sell, repeat. I just know that this business can become a burden just like any other business if I make it a job and not a business. I have been very burned by not understanding business principles. Im not going to let that stop me from investing Im just not going to make the same mistakes. I LOVE the idea of partnering and Im looking for someone to partner with now. Thanks for the advice I will mssg you about the meet up in SA.  

Brian that would be great. I will message you here shortly. Thanks