Mike
Its always a two way street.
Lets look at the seller predicament for minute ( he is selling for a reason correct ) May be too free up capital (again just role playing here). Your tying up 3 of his properties. Have you been honest with him about your actually plans. Are you buying to flip, or you actually buying them out right. Have you showed proof of funds. Again try to be in his shoes as well.
Make sure you have the right answers for his questions. Also be completely honest with your intentions. I sold many properties where the buyer could not buy. They were just playing the middle man. Which is fine as long as every one knows.
Now for fees ...earnest money. I work hard to acquire , buy and Fix my deals. So I don't want some one wasting my time either. ( again just role playing if I was the seller )
We purchased $1.2million dollar rehab apartment in Gastonia NC. Owner wanted $50k in non Refundable. We did $25k and 30 day Due Diligence. We did most of our work prior to buying. So 30 days was fine. So even then the earnest money was negotiable. Also bank proof of funds was sent. That ALWAYS helps with negotiating prices, and or earnest money.
Most of my turn key properties here in Charlotte NC. I work with Investors in Several Markets. I don't ask them to put anything down on my properties. As they sell turn key investments. So there end buyer actually locks up the property. We are good for $2500 down. Most times we take $1k if cash buyer. That goes directly to closing attorney. Each case is negotiable. As we make it Non Refundable but common sense approach. Again each sell is different.
So now in your shoes. Can you actually close, and buy these properties from this buyer. If you can not sell them by the agreed closing date. So what will you do then. Whats his recourse.
So again being honest and telling him your true intentions. At that point you both can find a happy medium. If you can buy the three properties great. Negotiate a fair earnest amount of funds. If you are just wholesaling them. Do you really need to tie them up. Work out a pre arranged fee and dates in agreement for sale. Again just trying to play
I know most real estate course or books. Say put down the least amount possible. Which I agree most times. With 16 years in this business. I can usually read right through most offers. So by showing true proof of funds and be willing to put some capital down. Your intentions are speaking louder then most.
Sorry guys if my spelling and grammar are off. I am a simple country guy who lives out in the sticks.
Hope all is well
Alex
