All Forum Posts by: Jason K.

Scott-

So lets say when you email your buyers about potential opps. you do not enclose an asking price?? I'm having a tough time of deciding exactly how I'm going to email this house to my buyer's list. Are you saying that you do not give your buyer's an asking price of any sort and wait for offers to come in after providing comps and such? I've seen an asking price on every deal that's ever been sent to me. I understand that you shouldnt disclose the contract price as you'll lose leverage in the deal, but you did not mention anything about your asking price. Please explain.

I've got 10+ comparable rehabs for this property. It shouldn't be a problem moving it, just how to properly advertise it is what I'm trying to determine.

I'm just trying to get it right so I don't lose leverage in the deal or shoot myself in the foot. I would want at least 1k up front and the rest at closing.

Bill,

If I word it like that and find a buyer for 105K, at what point do they find out what I paid for it?

Say they agree to purchase the home for 105K, how does the rest of the scenario play out?

Ok Jimmy, or whomever else:

Now that I've got the contract in hand, I know I have two options either assign or back-to-back close it.

EX: The contract is 100k do I immediately advertise it for like 105K or just advertise as "I have a contract for sale at 100K in so-and-so neighborhood for a 5K assignmnet fee with ARV of 165K, 10K in repairs, etc .. What approach do I take without shooting myself in the foot?

I'd rather just assign the contract and be done with it, instead of dealing with a back-to-back closing. How do I advertise it that way? Should I never show my hand (my contract)? Or how do I properly advertise for an assignment?

I need some pointers!

Thanks for such a quick response Jimmy

I went ahead and checked THIRD PARTY FINANCING for the entire amount of the sales price, and have the contract in hand, before these replies were made. I figured either way she gets the entire amount, regardless of the terms at closing, and we can adjust if need be in the near future.

So I will need to amend the contract myself with the seller once I figure out how my end buyer needs to pay, whether its cash, hard money, etc?

I have the sellers signature on the contract but have not signed myself, so there is still time to make a change if it really needs to be done. I'm using inspection clause.

I appreciate it guys.

What happens when you want to assign a contract to a buyer/investor who will be buying the house in different terms than the ones you agreed to the seller with?

For instance: If I get a house under contract for 100K cash but I want to assign the contract to someone who wants to pay 50K cash, 50K hard money, how does this work? Is it up to the new buyer to determine with the seller how they will proceed? Either way the seller gets their money so I don't see it being much of an issue.

But as a rule, when I'm submitting offers, what do I "check" for the Financing paragraph on the first page of the contract? Just leave it blank or use 100% financing, 100% cash? My online forms require me to enter the cash portion and the financing portion, and adds the two together that is the sales price. and if I leave both (cash portion & financed) blank and just fill in the sales price, it automatically assumes sales price will be completely financed. I've left the financing paragraph underneath the sales price blank for my first few offers. What should I do instead?
Please advise! Thanks!

Jon,

I realize this is an older thread but why does he have a fiduciary duty to the seller, if he's strictly buying the property for himself? There's no representation there.

To your second part -- If he encouraged a seller to list it as low as possible, then that is when it would become unethical, I would think, and the fiduciary duty is being tampered with.

It seems the most logical thing to do would be to disclose he's a licensee in the original purchase contract, close on the property, then close with your end investor.

Why does it need to be any harder than that?

JDK

I know I'm digging up an extremely old post here, but I wanted to chime in to the solution given here.

Why get a FSBO contract instead of just being the buyer of the home yourself? Then look to find an end buyer that can do a back-to-back closing? You're not representing anyone then, right? As long as you disclose that you are a licensee in the original contract, and that you are buying the property as a principal & for your own personal interest, I don't see why any other methods are needed.

Replies?

Jackie,

Back-to-back.