Unable to find a buyer...What next?

Question

Hi BP! I am a fairly new investor and I currently have a house under contract with an agent, but I have not yet found a buyer. I am still in the inspection period so still have some time. However, what other options do I have other than cancelling the contract if unable to find a buyer? The agent has already stated that there are other interested buyers in the property. Is there anyway to assign to the other interested buyers? The agent is also working as my agent (buyers agent) as we are in Virginia, but not sure how it would work if I wanted to reach out to the other interested buyers or if even possible. I appreciate any thoughts and feedback you may have.

Thanks

Jay Hinrichs · Answer

there is a big company in Dallas that does this.. why anyone would buy from them I don't know.. I guess the herd mentality.. some dude in Oregon is doing this..  he sent me a e mail.. the house is listed.. he does not put the address.. but i recognized it since i built the 8 townhouses right next to this one.. its a dog.  LOL  and just today he lowered the price by 20k.. Any agent who lets a wholesaler with NO intention of closing tie up their listing should be taken to the wood shed..  I chalk it up to an inexperienced agent on this one in Oregon.

To the OP  one thing to realize even though your saying the seller can sell to someone else so your not tying it up.. I will add. that your agent once you have put it in contract has it as pending and in some MLS systems it will say it has what we call a bump clause.. but for whatever reason buyers wont waste there time.. so no one ever comes in and try's to bump it.. '

Lastly its probably no deal  that's why it never sold in the first place and why you cant find anyone.. seems like a huge waste of time for all parties.. Now go find off market pull out your cash close do a little wholetailing to it resell make money thats the game.

Brandon Vukelich · Answer

In my opinion, this stuff is giving wholesalers a bad rep.  As a good business practice, please do not tie up a property when you have no ability to purchase or assign.  You are wasting your time and the sellers.  You first need to build a database (or any basic list) of willing and able end-buyers before you go around making offers on properties.  If you plan to wholesale, you need to be a legit business that is working to solve real estate problems. Not focused on a fee.  Fair and transparent deals are the best way to work with sellers.  I'm very clear that if I don't buy the property, one of my investors will.

Ron H. · Answer

You signed a contract to purchase a house that you did not intent to buy or possibly do not have the means to purchase.  Whether you find an assignment buyer is not relevant as to whether you move forward with the purchase.  Unless the seller was fully informed that you did not intend to purchase the property but was looking only to market it, you should close.  Anything else is deceiving the seller and giving wholesalers a bad name.

Carey Lynch · Answer

Account Closed If you read my second response, then you would have read that I offered an ROFO, so the seller has the option to continue to market the property to another buyer. It looks like there is some confusion and/or lack of knowledge as to exactly what wholesaling is or maybe it is based on negative personal experience or lack of. However, I thought I posted this in the wholesaling group for those that would be more familiar, but it doesn’t look like that is who has replied so far. Just looking for insight from those that are are actually knowledgeable or more experienced with wholesaling.

Amy H. · Answer

@Carey Lynch yes I do hahah. I was asking because it’s hard to find a buyer on an mls listing because if a buyer wanted it, they would’ve offered when it was listed on mls. Why would a buyer pay a middle man more money when they could get it off mls themselves.  Where’s the property? Trying to see if I could assist.

Carey Lynch · Answer

@Brandon Vukelich thanks for taking the time to respond, however your comments are pretty presumptuous.  I actually have an active buyers list in which I have already sent the property to over 40 buyers but unfortunately no one seems interested.  I also have a legit business set up, so very serious about doing this as a legit business, so not just some money hungry person out here just tying up houses, which is how you are making it seem.  I am also, not just doing it for a fee, of course the fee helps but that is not my main reason for doing this at all.  Maybe you should try to get more information and details before you make such an assumption about someone that you don't even know, as your comments are pretty negative and honestly ignorant.  If anything, your comments/thoughts are what can give the investor community a bad rep., as instead of showing support for each other, we first make negative assumptions and automatically assume that someone is in this for the wrong reason.  Just FYI, I also offered an ROFO to the seller to keep their property on the market in case they receive a higher offer, to avoid any concerns of "holding up" the property.  If I didn't care about trying to get this property assigned and sold, I would not be taking the time to try to find another solution I would just cancel the contract and move on, but I did not want to have to do that if there is another way.

Ron H. · Answer

@carey lynch

you are looking for ways to get out of closing.  You stated that contract had option for assignment or purchase.  This gives you the option of assigning but does not give you the option of not closing if you can't find an assignment.  I deal with  and purchase from wholesalers and agents. I have seen people deceived/hurt by dishonest wholesalers.  Not closing on a contract without the sellers knowledge that you didn't intend to purchase falls into that category

Carey Lynch · Answer

@Amy H. Just a heads up that I was able to find a resolution that works for all parties. Thank you again for offering to help.

Carey Lynch · Answer

@Ron H. My apologies for any confusion as it looks like you have misunderstood my question/request. I am actually looking for options so that I CAN close. I DO NOT want to have to cancel the contract and that is why I am reaching out. Please do not misunderstand my intentions or make your own conclusions before fully reading and understanding my question and the actual transaction in general. If you don’t understand my question please feel free to ask for more information but don’t assume that I am trying to intentionally deceive or hurt a seller.

Carey Lynch · Answer

@Jay Hinrichs  Based on your comments, it looks like there is some prejudice and stereo typing and just basic ignorance of wholesalers and wholesaling in general.  You are referring to a company in Dallas which I have no connection with and am not familiar with and you also reference “some dude” in Oregon, who again I have no connection with.  You then go on to state that an agent who works with a wholesaler should be “taken to the wood shed”…  First and foremost, wholesalers do close as they work with other investors or buyers or they will close theirselves.  It is not fair to stereotype all wholesalers or wholesaling in general as a transaction that does not close.  Granted there are some wholesalers that do not practice good ethics but that does not mean that all wholesalers are unethical.  Just like you have some agents, brokers and investors that are unethical (or even ignorant), however, that does not mean that all are.  Also, as far as having an ROFO to keep the property on the market, if this is done it is not marked as “pending” it is marketed as “Contingent” not pending and the agent can continue to market the property to other buyers.  With all this being said it basically seems as if you do not have very much experience or knowledge when it comes to wholesaling and not sure why you chose to comment.  It just seems as if you just wanted to add your two cents of negative and presumptuous comments that really doesn’t help anyone.

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