Afraid of not finding buyers

Bird Dogs, Wholesaling
1

I have wholesaled many deals but am a bit fearful these days. All of my wholesale deals previously were prior to the market slowdown and I had never had trouble getting a buyer. Now with the slowdown I am becoming more fearful that I will not be able to promise a quick close to my sellers because of the downturn in the market. Thoughts?

2

market for new buyers if the ones you currently have don’t wanna buy.

3

Fear is a funny thing! It doesn’t sound like you’ve had a problem selling your deals in the past. If anything you could buy at lower margins than you used to so your deals are even better now.

4

There are always deals, there are always sellers and there are always buyers.

5

If the deal is good enough, someone will buy it in any market condition… :biggrin

6

As long as you have your “easy out” clause in the contracts, then fear should go away. Remember what FEAR is:

False
Expectations
Appearing
Real

The Best Deals, can always find money and buyers

7

Dumb question…what’s the easy out clause?

8

Ya, I think someone metioned on another post we really should be perpared to close on these deals if we don’t find a buyer. If we continually write contracts and weezel out it will catch up to us.

9

Steve Cook in his articles on this site talks about putting either a financing contingency in the contract or being up front with the Seller.

I don’t do the financing contingency b/c I don’t want to spend the $300 - $1000 to a hard money lender for appraisal/processing.

I do put an inspection clause or pay option money for an inspection period. I’m very up front with the Seller. The inspection period gives me time to get contractors, inspectors, and/or partners (e.g., other investors) into the property. If need be, I would go back to the Seller to amend the contract to reflect the repair costs. But that does not mean that I won’t buy the house.

If the Seller doesn’t budge on reducing the price, then maybe instead of a $10K profit or whatever, I could assign it for a $3K profit, or even $500. I’d try that 1st, since the property would still get sold. Then if that doesn’t work, I can exercise the clause in the contract to terminate it. Or the worst case scenario, I lose the earnest money - which shouldn’t be much when dealing with a motivated seller.