Seller Accepted My Offer...Now What?

Question

I found a property on Craigslist this morning, contacted the seller, made him an offer and he accepted. The property is located about 3 - 4 hours from me so unless it's absolutely necessary, I would like to get it under contract without physically seeing it. The pictures look good and after doing some research, it seems like a pretty good deal. I guess my question is what should I do next?? My thoughts were to get the contract signed and then post the property on here in the Investor Marketplace. Is that the right move? This is my first potential deal and I really don't wanna mess it up. All help is greatly appreciated. Oh, one more question...how does the closing work when the buyer and seller are not located in the same area? Would I go to him? Does he come to me? Or can everything be done through email and fax?

Benjamin Winokur · Answer

I take it you're planning on wholesaling this property? If so, then you'll be looking to assign the contract to someone else, correct? In that case you wouldn't actually be closing on the property.

That said, I would be remiss without saying its less than ideal to put a property under contract that you've never seen before. Do you know how much work it needs? ARV? How's the neighborhood? I would never put anything under contract without either seeing it first hand myself or using a TRUSTED advisor that is providing you with images/video of the property. DO NOT take the word of the seller, that's a good way to get yourself in a tough situation.

I'd also recommend you run a property profile on it to make sure that the person that is selling it to you actually has the legal authority to do so.

I commend you for taking action, but I think you should do a bit more research or align yourself with a mentor/experienced investor to help you along.

Account Closed · Answer

Congratulations on getting your first accepted offer. It is possible to wholesale properties sight-unseen, but I really wouldn't recommend it, especially on your first deal. You and the seller should meet to sign the contract together anyway, so why not use that time to go over the property in person? If you really cant make it to the property or the seller but know it's a good deal, just sign your part of the contract and overnight it to the seller for him to sign and then send off to escrow.But that aside, to answer your first question, I would start looking for a buyer immediately. Also once the contract is signed it goes off to the escrow company with your ernest deposit and they take care of the rest on that end, so you don't need to live close to the seller. Most everything can be done through email.

As far as actually closing on the property, since your dealing directly with the seller you can either assign the contract, or use a transactional lender to close on the property yourself and immediately resell to your buyer inn a "double closing".

If you are going to assign, be sure to get a deposit from your buyer that covers both your deposit and your time. You would hate for them to fall out and leave you owing a deposit and looking bad. That's why I recommend double closings.

I hope that helps!

Chris Grenier · Answer

It sounds like you just got in over your head.

I would recommend doing a substantial amount of research and having an actual business plan / game-plan in mind before sending any EMD.

(Just my 2 cents to help you save a lot more than 2 cents).

Shari Peterson · Answer

@Reese Davis Congrats on getting your first deal under contract. If you plan to assign the contract (and you made the offer as "And/Or Assigns") you won't need any funding for the deal. You'll just be selling the contract for an assignment fee. But if you are going to do a double close, which usually nets you a higher profit spread, you are going to need to bring cash to the A-B closing to completely pay it off. Then, you will immediately re-sell it to a third party at the same title company. I can recommend a title company for you but I believe that forum rules prevent me from providing contact info. I'll PM you.

Jason Rivera · Answer

Congrats!

Assuming you've crunched the numbers and the numbers make sense, get a wholesale-worthy contract signed. You have no deal until that contract is signed because a signed contract signifies the property is tied up with you. Once the property is under contract advertise the property to your buyers list. Assign the contract to the end buyer. Depending on your areas RE laws you can do signatures by fax, email, or e-signature (like DocuSign) for faster movement.

Best wishes on your first potential deal!

Meghan O'Connor · Answer

I would really make sure the numbers make sense before you do anything else.  And be up front with the seller.  Don't lead them to believe you are the one buying the property if you're assigning it.

Get an ARV from a good broker, and I do multiple contractor quotes myself. I agree with whoever said they wouldn't buy sight unseen..baaaad idea.  Are you figuring in all costs when you determine your MAO?  Investor profit/BSH/Wholesale fee and accurate repair cost?  Plz don't go in blind..you'll regret it and it's not fair to anyone involved. :))

Chris Boyd · Answer

@Reese Davis message me. I can help you.

Seller Accepted My Offer...Now What?

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