Hello, everyone
I made an offer on a property - it was accepted. I want to wholesale, but the sellers want proof of funding before signing a contract and taking off the market. How should I approach this? It’s a home thats priced about $80K below comps in the area? Do I have to have a signed contract to market to my wholesalers? Or is doing it with a signed contract for my protection only.
Need a little assist? Anybody ?
You say, "I made an offer on a property - it was accepted. ", then yopu say, “…the sellers want proof of funding before signing a contract and taking off the market.”
So which is it? If the sellers have not signed the “contract” (I’m sure you mean the contract form), they have not accepted and there is no contract.
Keith
Hi Keith,
What I mean is I gave an offer via email to the realtor, she spoke to the sellers and they agreed to sell at the price I was offering… However, they don’t want to take it off the market without a written contract and proof of funding.
I have written up a contract… doesn’t the contract need to be signed by both parties to make it a binding agreement, and to protect me against someone else butting in on my deal?
I wanted to just wholesale it … but I don’t think I can without a signed purchase agreement, right?
If so, how do I approach the sellers? Do I tell them that I actually want to wholesale the house…?
Part of being a successful wholesaler is having lenders available who you can “walk” your investor/buyers to in order to ensure the deal goes through. Once this is the case you can have one of the lenders write you up a prequal letter that you can submit with your offers.
Also, you need to know your exit strategy IF you can’t wholesale it. If you’re plan is to buy it if you can’t wholesale it then you do need to make sure you qualify.
Chris
Since they hired a realtor to represent them, I doubt you gonna be able to use your contact.
You should have had that covered first.
Contact a hard money lender to get an approval letter, assuming the deal is good. HML should give you an approval letter.
Your next challenge is which name will you put on the contract as the buyer, yours? how will you assign it? is the contract assignable? will you have to do double closing? how will your buyer close?
You’re going to need to get a signed purchase agreement first. It sounds like you will need the approval of funding in order to get them to sign. This is something you’ll need to do by working with a mortgage broker (or showing them your bank account if you’ve got the cash).
Once you have the purchase agreement, you have a deal that you can take to an investor and sell to them.
There is another way. You can get an “option” on the property. Simply negotiate a 30 day option to buy the property at the specified price. They’ll probably only accept this if they are desperate, but it’s another way to do it.
Take Care,
Jeff
One other way to get around the letter is to show a verification of cash funds, If the home is inexpensive enough and you know someone with enough in the bank you can use their statement with the numbers crossed off.
or make the offer contigent upon you finding a buyer, and give the seller the ability to leave their home on the market while your looking for a buyer. Then your offer is no risk to them, and no risk to you, once you find a buyer and that buyer can verify his/her financing then the contingency is removed.
What Fadi said.
Hopefully you already have buyers in place.