I know to get buyers before putting proprties but what if you get one under contract and can’t find a buyer?
I use “Purchase of above stated property is subject to approval of business partner within 14 days of signing this contract.”
I swear that is what I had in mind. Thanks.
That seems to be the standard that clause that almost everyone uses. However I might change one thing to it. You may think it is getting very very picky but heres what I have to say…
Disclaimer: I am not a lawyer etc. etc.
I believe the term partner is a legal term and it is also singular. So you are saying that you only work with one person, whereas the term associates gives you some more flexibility and might save you in the future when you run into one cranky seller.
Just my thoughts, maybe a lawyer or someone else can shed some more light on it. So thats a great escape clause but I would just just the partner word.
Brandon
I usually say “Subject to bids and inspections.” I don’t make reference to partners or associates. There is no need. Also, I try to leave off the “to be completed in 14 days” part unless a realtor makes me.
Another interesting special provision I usually insert is “Seller to provide Buyer with a key to complete bids and inspections.”
Hope that helps!
Brandon Lambert
How do you get your buyers. Especially in this market?
I’ll give you three sources, but promise not to tell anyone. 
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“I Buy” ads in the newspaper and signs in the neighborhoods
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Go to a foreclosure aution. Everybody there is buying property with all CASH. Network with them and give them your card
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Go to your local Section 8 office. Get the list of property for rent. That list will have the Name and contact info of the landlord as well as the property for rent address. Now you know what your investor likes to do (buy and hold) and where he likes to do it.
Hope that helps!
Happy Investing!!
Brandon Lambert
Those are all good and I’ve seen them used successfully by many wholesalers. I just typically use an option/termination period for a cheap price for a longer time period. I usually tell them I’m not exatly a foundation or plumbing expert and would like to have some pros come in and take a look for me, but it costs me money to do that; so I need to have it contracted to proceed. Everyone has their own method.
I don’t like the option strategy because an option is non-refundable. However, if I back out per my special provisions, my earnest money is refundable.
I know what you’re saying, but if you do 30 days for $10, then it’s not really a big deal to exercise the option and get a release. I work for a licensed brokerage – I’m not independent so that’s why I do it that way, but like I said I think those work fine as well.
I use a “buyer has 10 days to inspect the property, any time within that 10 day period the buyer may terminate this agreement if inspections are not satisfactory to the buyer” also if the home is not with a large institution I make my deposit money payable after the 10 day inspection contingency is done.
The problem with the partner clause is that many of foreclosure companies will not accept that, they have there own addendums and it usually does contain an inspection clause. I have never seen one with a partner clause.
Eric Medemar
Good point on the forclosure properties. In the past, I have not dealt with foreclosures for wholesaling because of the banks not wanting to allow that language. However, after reading the material in your ebook about foreclosure wholesaling I look forward to doing more of those types of deals.
As far as foreclosure properties are concerned, i.e., short sales, I give $1 for option & include that the contract is subject to lender approval of the SS.