I just got the owner under contract a week ago and I have contact all my investors by way of mail, email, and phone and there has been no real response. Will I be able to back out of the contract and what is the time frame. I live in New Jersey if this matters.
While I’m not an attorney, I strongly advise that you GET an attorney. Sometimes you can back out of a deal fairly easily, but sometimes you can’t. Generally most real estate contracts have “specific performance” clauses and “damages” clauses that can be quite substantial.
Typically I try to have my buyer lined up before I even make an offer on a property. In my communications with my investors, I negotiate the price I would sell it to them ahead of time and get them to commit to it. This works well because there are no surprises. I do the legwork of finding the property, researching as much asI can about it and present it to my investors. Sometimes the research doesn’t translate into sales but oftentimes it does. Good luck.
I am going to assume this original deal is a flip. Wouldn’t that be risky to mention the property before you get a contract? I mean what would stop the pool of investors from cutting you out of the deal before the contract offer?