Should I let my Investor speak with my Seller?Or conference call?

Question

Hello all,My investor wants to know if he can do seller financing on the property for sale. He would like to speak with the seller about this. I have been back and forth between the two about a good time to speak. Should I give my investor the sellers number or do a conference call with the two? First time having this situation.

Adam M. · Answer

Agree w/ Account Closed sounds like he is trying to give you the end around.

Account Closed · Answer

Hm....maybe the returns are thin as a flip and he feels he can make more if he used seller financing (?) The buyer doesn't need to speak to the seller about a thing, he's not on the contract. Sounds like he's trying to pull a fast one, I'd be cautious. You should ask him straight up: "Are you saying that, if you can't get seller financing you don't want to do the deal?"

Account Closed · Answer

Quick answer: No. By letting your "Investor" talk to the seller you're basically brokering the deal, that requires a license...the reason I mention that is because if they cut you out of the deal there's probably no way you could have that situation handled legally. You always want to remain in control of the transaction, why give your buyer all the control and give up negotiation duties? This is a sticky situation, you may just have to work with a different buyer, I'd tell him to make me a cash offer or find another deal, never let them control the deal, I can't stress that enough.

Jay Hinrichs · Answer

boy this sounds like brokering without a license all the way.. careful upsetting folks and recording things on their title.. they could turn around and sue you and or turn you into the state for broking real estate without a license which is clearly what your doing.. your not selling a contract.. All anyone would have to do is tag this thread and your toast.

Danielle Spears · Answer

Account Closed thanks for the advice. I will definitely ask that question.

Sekelle O. · Answer

I agree with other posters that it is important to maintain control over your transaction. The first step to doing that is to get the property under contract. Run your numbers, negotiate a purchase price with the seller and sign a contract you can assign that has a reasonable due diligence contingency period. You may be worried about if you can find a buyer, so you are waiting to put the house under contract. If you create a good deal, either your buyer will step up or you will find another buyer. Visit your local REIA, put an ad on Craigslist, talk to HML lenders, all can help you find cash buyers. When you find a buyer, get your entire fee up front and in escrow. Down payments are for purchase contracts, not assignment contracts. Real cash buyers can pay your fee up front. You will collect at closing or if the buyer defaults. But your first step right now is to get the property under contract, asap.

Danielle Spears · Answer

@Shawn Ackerman thanks. Will do. I appreciate the guidance and knowledge.I also appreciate the help I'm getting from BP, you guys are helping me to become better in my career. Thanks for taking the time out to help.

Danielle Spears · Answer

Thanks everyone, great information.For the record (in case anyone wants to tag this thread and report me) I'm a newbie wholesaler that found a property for a local investor I work with. I sent the investor info he wanted to do his own research. The two have never spoken and the property is not under contract. I am simply asking experts if it's normal for the buyer to want to speak with the seller. I know investors often view the property before they buy and often speak with the seller then, I'm sure. Me and the investor have discussed that I will be paid on any deal even if it is owner financed.The seller knows I'm bringing a cash buyer and she is willing to discuss owner financing. The seller knows my position and that I'm new.Education is key and I'm doing just that. Sticking with a general area and becoming a master.Thanks again everyone :)

Nick C. · Answer

@Danielle Spears - It is normal for an investor to work like this if he is trying to cut you out of the deal. As soon as he stops returning your calls you need to record your interest in the property to cloud title. If he's trying to get owner financing it may not matter, but it may prevent him from purchasing it outright.

Shawn Ackerman · Answer

@Danielle Spears under no circumstances should you allow an end buyer to speak directly to the seller. What sort of questions does the buyer have that you cannot answer?