Happy New Year to all 
What I would like to start out by Wholesaling. What are some exit straigities that are best to use in a contract?
In my area FISBO’s have a asking price for more then what the house will appraise for. I guess I am looking in all the wrong places and I a afraid of being stuck in a contract and being out money.
Please advise. ???
I have a lot of questions?
You need to join your local club and talk to investors and find out what “In Detail” they are looking for.
That way when you find a deal, you will have a list of buyers.
Do your homework so you know what a deal is.
Read read read the post, then read some more.
You may want to do some bird dogging first.
Once you feel you can due the numbers and see if it is a good deal not, do a little wholesaling. Then when you feel you can complete a project from beginning to end.
Hard Money
I still did not answer your contract question. What you are looking for are called weasel clauses and an assignment clause. As in - upon approval of your partner, your boss , your lender , the inspector , title search and so on. The assignment clause is so you can assign the contract over to an investor and not have to buy it your self.
Wishes you success in this coming year…
;D
Bruce
Thank you
What if I have a deal that know one wants. What is a sound exit? Based on my partners approval, is what I used last time.
I have only put a contract on one property, and it was going to need some work, I had and investor to come by and look at it, and it was in a decent area, he said it would take about 25 to 30K for repairs and he would only profit about 10K. He said it was not worth his time. I had a few other responses simaliar to that.
I was able to get out of the contract.
Realtors in my area discourage the sellers from accepting a contract that is an assignable contact.
Any suggestions?
Thanks again
EastCoastGirl ???
IndyBruce,
I liked what you said about the weasle clauses and the assignable clauses. Do you have any examples of the clauses? What is actually said on the contract for assignable contract.
Thanks,
Joe
you could add a clause stating the contract is subject to an inspection. This way, you can have the property “inspected” by a possible buyer. If the buyer doesnt find a deal, you can get out of the contract. There is also a subject to financing clauses, where if you are denied financing you can get out of the contract. This is especially good if you use HML’s because if they deny you, it very well could be because its not a good deal. Also, there is a subject to partners approval. That way if the deal doesn’t work out, you can get out of the contract because the partner didnt approve. Partner can be anyone. A possible buyer, friend, relative.
This comes from stuff that I have read. If anything I wrote needs correcting, dont hesitate to correct me.
can you use all three weasel clauses? like lets say i draw up a contract like this:
I, Ms. Apple Bottom, agree to purchase 123 mockingbird ln from Mr. Hobby Horse for $ 37000 within the next thirty days. This contract is binding subject to a passed inspection of the property, approval of financing, and partner agreement. If one or all of the above conditions have not been met, the contract is thus null and void. If all conditions have been met then the contract is valid. This contract between Ms. Apple Bottom and Mr. Hobby Horse is assignable.
or is that an overkill that no one will accept.
that may be ovekill… I use and/or assigns, use the subject to inspection, subject to financing.
keep in mind that your buyer may want a home with 2 baths and this one only has 1 1/2 so this would not be acceptable when they inspect, Try not to be too detailed because once all the conditions are met , it will make it harder to get out of th deal.
A good weasel clause needs room to weaseling.