Great wholesale deal but little time, What do I do?

Wholesaling
14yFollow

Great wholesale deal but little time, What do I do?

Keith Saunders
Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes

I'm a newbie wholesaler here in pittsburgh. I got 1 deal under my belt so far and looking for the next one. I found a guy ready to sell his house. Half the house is in OK shape the other half is a disaster, Severe water damage,rotted out floors, and you can see outside looking through the roof. I beleive the ARV to be $165K. Offered owner $32K which he accepted. Think it will take $65k to repair and $3k to close. The problem is the time line. He tells me today the bank will take the house back on July 7, 2012. I'm not sure I can find a buyer and close in that time. My usual game plan is to sign the contract for 60 to 90 days giving me time to find a buyer. I plan on marketing the house for $55K but will take anything above $42k.

What is my best option?

Wait for the bank to take it then do a short sale?

Sign the contract, then contact the bank to try to get an extension for 60 - 90 days?

Try to sell it for less profit maybe say $37K and market it for $42k?

or is there something else I can do here?

I don't have the money to buy the house if I can't find an end buyer to assign the contract to. So I have to find a buyer to make this deal viable. As time is short I would appreciate you response ASAP.

Thanks,

Keith Saunders

0Reply
37 views

Most Popular Reply

Steve Babiak
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
Originally posted by Keith Saunders:
...

STEVE: Yeh I found that out about the double transfer tax the hard way when I completed my first assignment deal. My title company never told me about it until the day of the closing. I ended up eating $3k in transfer taxes. Needless to say I found another title company for this and future deals.

...

I recently assisted somebody I know who had sold a property in PA for far below ARV - it was sold around 0.7 * ARV - repairs, like most investor purchase MAO formula purchases. The PA Dept of Revenue audited this sale - they were specifically seeking a bigger amount for the transfer taxes! Needed say $35K in repairs, ARV around $90K, so MAO would be $28K using MAO formula mentioned earlier; seller sold for less than that (closer to 0.65). But the Dept of Revenue wanted transfer taxes on like $90K! In this audit letter, the Dept of Revenue was looking for some specific items on this transaction, from all parties - seller, buyer, and title company.

Here is what they wanted (wording directly from the letter except where some privileged info is involved in the third item):
* A copy of the installment sales agreement or purchase contract for the property.
* A copy of any appraisal of the property that was completed within the last two years.
* The computed fair market value of the property was _____ & the grantee purchased it for _____ . Supply written documentation as to the difference. What, if any, is buyer's relationship to seller?

Now, the written explanation was good enough for this case, since there was no assignment of contract here. But these audits do happen, and these type of undervalue purchases are the most likely to trigger such an audit. An assignment of contract is certain to get the PA Dept of Revenue looking for their extra transfer taxes. So be sure that you are able to cover that even if you found a "friendly" title company - you might have to pay your "friend" in the end to cover the state's desire to collect transfer tax.

1Reply
See this reply in the discussion

28 Replies

Jump to latestLatest
  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    14y

    What does he owe on the property?

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y

    How many payments are due?

    You don't wait for a foreclosure to do a short sale, contact the bank and let them know now what the condition is and that you're working on a purchasing it at the agreed price.....will that clear the bank out? If not, he probably can't sell it for that price unless the bank agrees.

    did you get an option on it?

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    When the bank "takes it back" it is no longer a short sale candidate, it becomes REO.

    The question asked above is very important here: how much is owed? Because if what you were offering doesn't pay off all the loans and liens, then this probably won't work. There doesn't seem to be enough time to do a short sale before the foreclosure date in July.

    Due to silly PA Dept of Revenue rules on transfer tax, where you have to pay transfer tax on the assignment as well as the end purchase, you might as well consider doing two separate escrows to close rather than doing an assignment - you are looking for a pretty large spread on the re-sale compared to the contract price you have. You might be needing transactional funding to do the first escrow.

    0Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y

    TIM: He owes $31844, He accepted an offer for $32000.

    BILL: I don't know how many payments he owes but he says he owes $31844. Which I will of course verify. No, I didn't get an option, what do you suggest?

    STEVE: Yeh I found that out about the double transfer tax the hard way when I completed my first assignment deal. My title company never told me about it until the day of the closing. I ended up eating $3k in transfer taxes. Needless to say I found another title company for this and future deals.

    As for the double close, I don't think I will actually get $55K for the property, more likely $42 to 45K. So I have no plans to engage transactional lenders as they charge a minimum of $2500 plus points.

    I had planned to talk to the bank, but don't I need to get the home owner to sign a financial information release letter then fax it to the bank, before the bank will even talk to me?

    I remember I used that letter about 5 years ago when I tried to buy my first short sale property.

    His bank is citimortgage. You have any dealings with them? I've heard banks like Wells Fargo are a pain to deal with.

    I'm assuming I need to talk to the bank first before I sign the contract with the home owner, not only to verify the amount owed to make sure they will give me the extra time I need. Now obviously I don;t want to let the bank know I'm doing a wholesale, right?

    Thanks to all for your responses,

    Keith

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y

    Seems you have good communication with the seller and nothing is hidden, other than what you intend to sell for which is irrellivant at this time.

    Citi and other large ones are a PITA, even if you mailed an authorization, the kid who answers the phone has no way of knowing that. I suggest you get with the seller, have him call and verify who he is an then introduce you on the call and hand you the phone, he can tell them to talkto this guy and then they will speak to you.

    But, getting payoofs on the phone can be done with per diem rates, he can get that and hand it to you from a local bank office.

    Unless this becomes a short sale, the bank has nothing to do with it, there really isn't anything to ask them about. Other than saying you are buying it, telling them that should get you some time and a copy of your purchase contract might help too.

    In that case I'd use a purchase contract and use your inspection period to exit, so find your buyer, you got zip til you do. Since you have tax issues, I'd find that buyer, take a fee and back out allowing the real buyer to purchase and close, check on those transactions in your state......good luck!

    0Reply
  • Timothy Rogers
    Investor · Garland, TX · Member since 2010 · 99 posts · 92 votes
    14y

    @Keith Saunders Are the legal fees included in the payoff amount of $31,844? If not then the seller sold himself short. He will still owe the bank. I know banks will add on legal fees when they have begun the foreclosure process.

    I have been in your position before. I had a wholesale deal that was in foreclosure with 2 weeks to go before the auction. The payoff was $58K including legal fees. I offered him $62K. I had my buyer ready, but title came back with a mechanical lien (Siding Company said they did not get paid for siding job on the seller's home). Seller got financing through BofA for the siding and he had his paper from BofA where he had paid it off. BTW his mortgage was with BofA. Fax his paid in full statement over to BofA. BofA said it would take 30days to clear the lien and would not put a rush on it. So property went to auction. I loss out on the deal, but my buyer bought the property at the auction.

    Banks will not work with you or wait on you, so have that buyer in place before you take contract to title company.

    0Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y
    Originally posted by Timothy Rogers:
    @Keith Saunders Are the legal fees included in the payoff amount of $31,844? If not then the seller sold himself short. He will still owe the bank. I know banks will add on legal fees when they have begun the foreclosure process.

    Banks will not work with you or wait on you, so have that buyer in place before you take contract to title company.

    I don't know for sure, if all legal fees are included in the $31844 due. I will find out more on monday when I meet the home owner.

    I'm starting to think I should do an Option to purchase agreement, try to find a buyer then sign the contract with the home owner. I don't know if the homeowner will go for it or if I do find a buyer if I will still have time to close before the bank takes it back.

    As for the banks not working with you. With the glut of foreclosures in todays market. If they can get one off their books for what is owed, without having to spend the money to foreclose, hold, then sell it, why wouldn't they work with a buyer?

    Doesn't seem like a smart financial move if you ask me. But who says the banks are smart when it comes to finances?

    0Reply
  • Account Closed
    Specialist · Detroit, MI · Member since 2011 · 10 posts · 2 votes
    14y

    Keith,
    As for finding a buyer,you shouldn't have any problem finding buyer if the price right. Do you have a cash buyers list? If not, I highly suggest building one before you start putting properties under contract from now on. You don't need a massive list.You just need maybe 5 to 7 solid players who are buying multiple properties. You can find these guys at REIA meetings or auctions. Also you should put up 20 to 30 bandit signs(hand written) within a 1 or 2 mile radius of the property advertising a property and your phone will ring off the hook (use a google voice number).You should be posting ads on craigslist every 48 hrs as well.You could contact other wholesalers who have cash buyers and offer to split the profit if they bring a buyer to the table. All of this marketing for buyers needs to be done simultaneously!! As for trans funding,you shouldn't have a hard time finding someone local to provide it at less than 2,500 dollars. I have found local cash guys in my area who do it for 2 points flat. Or you could just assign the contract which is better. I hope some of this info helps.

    0Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y
    Originally posted by Steve Hovencamp:
    Keith,
    As for finding a buyer,you shouldn't have any problem finding buyer if the price right. Do you have a cash buyers list? If not, I highly suggest building one before you start putting properties under contract from now on. You don't need a massive list.You just need maybe 5 to 7 solid players who are buying multiple properties. You can find these guys at REIA meetings or auctions. Also you should put up 20 to 30 bandit signs(hand written) within a 1 or 2 mile radius of the property advertising a property and your phone will ring off the hook (use a google voice number).You should be posting ads on craigslist every 48 hrs as well.You could contact other wholesalers who have cash buyers and offer to split the profit if they bring a buyer to the table. All of this marketing for buyers needs to be done simultaneously!! As for trans funding,you shouldn't have a hard time finding someone local to provide it at less than 2,500 dollars. I have found local cash guys in my area who do it for 2 points flat. Or you could just assign the contract which is better. I hope some of this info helps.

    Steve, thank for your reply.

    I have a cash buyers list from the first property I wholesaled, which I sold in 10 days. But this current property is in REALLY bad shape, Severe water damage, wood rot, Hole in the roof you could drive a car through, possible mold, etc. The first house needed alot of work but it was solid. I have no doubt I can wholesale it this new one, the question is can I do it in the limited time I have available?

    Bandit signs, are STRICKLY PROHIBITED in my area so I can't use them. Already have a google voice number I have been using for all my real estate stuff. Craigslist is how I sold the first one, with the assistance of postlets, to make it look professional. Along with backpage and Custom made yard sign, with the QR code in the window of the house. I brought it to the monthly meeting of my REIA too to promote it. So, I got the advertising taken care of for any property I find.

    My problem isn't not knowing how to market the house, I got that covered. It's not wanting to put myself in a situation I don't want to be in. In this case being forced to buy this house myself if I can't find an end buyer in this limited period of time. And unless you or anyone else has any different ideas I think an Oprion to Purchase Agreement is my best play here.

    Anyone think any different?

    0Reply
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    14y

    If your numbers are correct ($65K to rehab and $165K ARV), there's about $50K in profit in this deal between you and the end-buyer. If I bought in that area, I'd give you $50K for the property in a heart-beat (again, assuming your numbers are correct).

    Given that I'm probably more conservative than most investors, that means you shouldn't have any problem finding a buyer VERY quickly, even with you making $10-15K in profit!

    Stick it on Craigslist or find a more seasoned wholesaler who had a good buyer's list and split the deal with him -- you'll still make $5-10K for your efforts.

    Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
    0Reply
  • Account Closed
    Specialist · Detroit, MI · Member since 2011 · 10 posts · 2 votes
    14y

    An Option to Purchase Agreement isn't a bad way to go. Personally I wouldn't put a property under contract without having a buyer in place who is open to buying a disaster before hand. I wholesale between 6 to 8 properties per month on average and I typically try to have it sold before I even tie it up. If you have any doubt in being able to sell it then just pass on it. Deals come and go.

    0Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    14y

    If it were me, I'd get it under contract and into escrow, making the sale contingent upon the total amount to due to lender (including all past due fees and attorney fees) being no greater than $32K. If the amount due is more than the sale price, you can cancel the contract, and the seller understands this upfront. If you've found a buyer that will pay a price that makes it worth doing the deal, you can renegotiate the contract with the seller.

    I'm thinking your original question was about time. You should be able to sign it up, get into escrow and find a buyer in a week. That's plenty of time for everyone to perform before July 7. Of course, it has to be as you say it is about ARV and repairs. Are you sure of ARV? Have you checked title at all? Are there taxes due or other liens against the seller? If the condition is as bad as you say, there are probably code violations that might have already generated fees.

    1Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y
    Originally posted by J Scott:
    If your numbers are correct ($65K to rehab and $165K ARV), there's about $50K in profit in this deal between you and the end-buyer. If I bought in that area, I'd give you $50K for the property in a heart-beat (again, assuming your numbers are correct).

    Given that I'm probably more conservative than most investors, that means you shouldn't have any problem finding a buyer VERY quickly, even with you making $10-15K in profit!

    Stick it on Craigslist or find a more seasoned wholesaler who had a good buyer's list and split the deal with him -- you'll still make $5-10K for your efforts.

    Thanks for the reply Scott.

    I believe my numbers are right, but even if I'm 10K too low on repairs and 10K too high on my ARV, thats still 30k profit for the end buyer. When I do my numbers I am very conservative with the ARV and very liberal with the repairs. I might not make as much as some others would but I am trying to build a reputation of being honest and knowing not only the market but estimated repairs.

    I think my numbers are spot on but we shall see, what others think.

    0Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y
    Originally posted by Steve Hovencamp:
    An Option to Purchase Agreement isn't a bad way to go. Personally I wouldn't put a property under contract without having a buyer in place who is open to buying a disaster before hand. I wholesale between 6 to 8 properties per month on average and I typically try to have it sold before I even tie it up. If you have any doubt in being able to sell it then just pass on it. Deals come and go.

    Steve

    As I am a newbie I don't have an extensive list of buyers yet. But I agree with you, best case is to have a buyer before you put it under contract. That was why I was thinking of using the Option agreement. I don't have any doubt I can sell it. My only doubt is do I have the time to find the buyer and close in the limited time frame.

    0Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y
    Originally posted by K. Marie Poe:
    If it were me, I'd get it under contract and into escrow, making the sale contingent upon the total amount to due to lender (including all past due fees and attorney fees) being no greater than $32K. If the amount due is more than the sale price, you can cancel the contract, and the seller understands this upfront. If you've found a buyer that will pay a price that makes it worth doing the deal, you can renegotiate the contract with the seller.

    I'm thinking your original question was about time. You should be able to sign it up, get into escrow and find a buyer in a week. That's plenty of time for everyone to perform before July 7. Of course, it has to be as you say it is about ARV and repairs. Are you sure of ARV? Have you checked title at all? Are there taxes due or other liens against the seller? If the condition is as bad as you say, there are probably code violations that might have already generated fees.

    K. Marie

    I beleive the ARV to be accurate according to comps sold in the past 3 months. I have NOT checked the title yet, figured I would do that if and when I find a buyer after signing the contract with the home owner and turn it in to my title company.

    According to the county website, all taxes are paid trough 2012. Owner says there are no other leins but I know not to believe everything the home owner says. This will all come out when I run the title search right? Are you suggesting I do a title search before I sign either an option or contract?

    I didn't think about the code violations that my have been incurred. Who would I need to contact to find out about any outstanding code violations? The Municipality or would that be City?

    Keith

    0Reply
  • Raymond B.
    FL · Member since 2009 · 2k+ posts · 357 votes
    14y

    Keith Saunders,
    Is this property in Pittsburgh, or one of the surrounding cities/towns?
    I've invested in Beaver County, Pa.

    Thank you,
    Raymond

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y
    Originally posted by Keith Saunders:
    ...

    STEVE: Yeh I found that out about the double transfer tax the hard way when I completed my first assignment deal. My title company never told me about it until the day of the closing. I ended up eating $3k in transfer taxes. Needless to say I found another title company for this and future deals.

    ...

    I recently assisted somebody I know who had sold a property in PA for far below ARV - it was sold around 0.7 * ARV - repairs, like most investor purchase MAO formula purchases. The PA Dept of Revenue audited this sale - they were specifically seeking a bigger amount for the transfer taxes! Needed say $35K in repairs, ARV around $90K, so MAO would be $28K using MAO formula mentioned earlier; seller sold for less than that (closer to 0.65). But the Dept of Revenue wanted transfer taxes on like $90K! In this audit letter, the Dept of Revenue was looking for some specific items on this transaction, from all parties - seller, buyer, and title company.

    Here is what they wanted (wording directly from the letter except where some privileged info is involved in the third item):
    * A copy of the installment sales agreement or purchase contract for the property.
    * A copy of any appraisal of the property that was completed within the last two years.
    * The computed fair market value of the property was _____ & the grantee purchased it for _____ . Supply written documentation as to the difference. What, if any, is buyer's relationship to seller?

    Now, the written explanation was good enough for this case, since there was no assignment of contract here. But these audits do happen, and these type of undervalue purchases are the most likely to trigger such an audit. An assignment of contract is certain to get the PA Dept of Revenue looking for their extra transfer taxes. So be sure that you are able to cover that even if you found a "friendly" title company - you might have to pay your "friend" in the end to cover the state's desire to collect transfer tax.

    1Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y
    Originally posted by Keith Saunders:
    ...

    I had planned to talk to the bank, but don't I need to get the home owner to sign a financial information release letter then fax it to the bank, before the bank will even talk to me?

    ....

    I'm assuming I need to talk to the bank first before I sign the contract with the home owner, not only to verify the amount owed to make sure they will give me the extra time I need. Now obviously I don;t want to let the bank know I'm doing a wholesale, right?

    ...

    The form you would need for this is called "Authorization to Release Information" on the loan; I believe there is one in the BP file place. Since PA is judicial, the attorney for the lender will usually have a suitable authorization form as well, and sometimes the bank will only accept their own form.

    As to buying time, usually the attorney will be willing to postpone the sale if the property is under contract - contact the lender's attorney to find out what they need to be willing to do that. At a minimum, they will require a bona fide arms' length agreement to purchase. Sometimes the bank has already instructed the attorney that there will be no further postponements, so you might have better luck dealing with the attorney than trying to deal with the bank directly. PA has some kind of rule that the second postponement requires certain things to be reset (must advertise in the newspaper again for example), so if it has been postponed once already you might have a harder time getting it postponed.

    0Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y
    Originally posted by Steve Babiak:

    The form you would need for this is called "Authorization to Release Information" on the loan; I believe there is one in the BP file place. Since PA is judicial, the attorney for the lender will usually have a suitable authorization form as well, and sometimes the bank will only accept their own form.

    As to buying time, usually the attorney will be willing to postpone the sale if the property is under contract - contact the lender's attorney to find out what they need to be willing to do that. At a minimum, they will require a bona fide arms' length agreement to purchase. Sometimes the bank has already instructed the attorney that there will be no further postponements, so you might have better luck dealing with the attorney than trying to deal with the bank directly. PA has some kind of rule that the second postponement requires certain things to be reset (must advertise in the newspaper again for example), so if it has been postponed once already you might have a harder time getting it postponed.

    Steve,

    I'm assuming the attorney's contact info will be on the letters sent to the home owner. If not, where would I get the attorneys contact info? The bank is CitiMortgage.

    Do you think I should still have the home owner sign an option agreement, find the buyer then sign the purchase agreement and assignment contracts just to cover my butt? or don't you think that will be necessary?

    As for the transfer taxes and the title company. I mainly changed title companies due to their total lack of communication on several important issues and the fact it took them almost a month to do a title search. The issue with not telling me about the double transfer taxes was just the last straw. I found a more investor friendly one that responds quickly to my questions and my needs.

    One question though, do you usually split the double transfer taxes down the middle or have the wholesaler pay trasfer tax on what they put the house under contract for say $50K and the end buyer pay the transfer taxes on the assigned price say $65K?

    Personally I think the state is double dipping as there are not 2 closings going on, I am mearly signing my rights to the contract over to another individual.But what do I know?

    Keith

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y
    Originally posted by Keith Saunders:
    ...
    I'm assuming the attorney's contact info will be on the letters sent to the home owner. If not, where would I get the attorneys contact info? The bank is CitiMortgage.
    ...

    The attorney's info could be there. But I would go to the county sheriff's dept or prothonotary (website if there is one) and see who is handling the case for the lender. Sometimes you will get all of the attorney's contact info there, sometimes just the attorney's name.

    Originally posted by Keith Saunders:
    ...
    One question though, do you usually split the double transfer taxes down the middle or have the wholesaler pay trasfer tax on what they put the house under contract for say $50K and the end buyer pay the transfer taxes on the assigned price say $65K?

    Personally I think the state is double dipping as there are not 2 closings going on, I am mearly signing my rights to the contract over to another individual.But what do I know?

    Keith

    I will start with the second paragraph of this quote and then get to the other paragraph.

    Sometime around 2008, there actually was a lawsuit that the PA Dept of Revenue LOST - they only wanted to collect the transfer taxes on the assignment fee(s) when an assignment of contract occurred. So they took a different approach that so far hasn't been challenged to my knowledge, where the assignment is broken into individual transactions and each is taxed. See my post here:

    http://www.biggerpockets.com/forums/93/topics/65753-adding-end-buyer-to-avoid-double-tax?page=1#p361996

    There I have the two pertinent links to the PA Dept of Revenue's rules on transfer taxes. The second link there has a section 91.170 and if you read part (b) there you will see how the state now is looking to collect transfer taxes on assignments.

    Now, the Example 1 that is illustrated in that part (b) of the above referenced link is exactly how you should divide the transfer taxes in an assignment. Pretend that each part of the transaction has to stand on its own, just as if you did two (or more) closings. Seller A pays half of transfer tax on original contract value. Assignor B pays half of transfer tax on original contract value. Assignor B pays half of transfer on original contract value plus assignment fee. Buyer C pays half of transfer tax on original contract value plus assignment fee.

    So in the end the Assignor pays a full transfer tax on the entire original contract amount, plus half a transfer tax on the assignment fee. If there are multiple assignments, then that is another matter ...

    0Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y

    Steve,

    Do you think I should still have the home owner sign an option agreement, find the buyer then sign the purchase agreement and assignment contracts just to cover my butt? or don't you think that will be necessary?

    Thanks

    Keith

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    The option agreement lets you out without having to have an "escape clause" ... It might not help any in the event you need to delay the sale.

    0Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y
    Originally posted by Steve Babiak:
    The option agreement lets you out without having to have an "escape clause" ... It might not help any in the event you need to delay the sale.

    Yeah, I kinda figured that was the case. Given the situation, what would you do if you wanted to move forward with this deal?

    0Reply
  • Martin CS
    Investor · Allentown, PA · Member since 2012 · 73 posts · 18 votes
    14y

    The quickest way to sale a deal is to do some handwritten signs around the area. I noticed you said they were forbidden in your area , well you can put them out on the weekend when city workers are off. That would be the way to go if you dont have a buyer already.

    0Reply
  • Keith Saunders
    OP
    Real Estate Investor · Pittsburgh, PA · Member since 2011 · 60 posts · 17 votes
    14y
    Originally posted by Martin CS:
    The quickest way to sale a deal is to do some handwritten signs around the area. I noticed you said they were forbidden in your area , well you can put them out on the weekend when city workers are off. That would be the way to go if you dont have a buyer already.

    I tried that on the first house I wholesaled, The police called me less than 2 hours after I put them up and told me to take them down Immedietly or be fined $100 per sign. So when I say bandit signs are STRICKLY PROHIBITED I mean it. Although the city workers may be off over the weekend the police obviously are not. So it was not only a waste of money but a huge waste of time for me.

    But, thanks for the response.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free