Made My 1st All Cash Offer, Now Have a ?

Bird Dogs, Wholesaling
1

I finally built up the nerve to begin making offers. I found a property in which the owners need to sell. The house is worth $610k and I made an offer for $450k, all cash to the listing agent/owner. My plan is to assign the contract for quick cash. I have a potential buyer who is very interested to move-in a fix up the property himself. However, the agent told me proof of funds would go a long way before the offer was accepted. how should I handle this? Also, what is the most someone has assigned a contract for?

Thanks!

2

Did you make a verbal agreement or do have a contract on it?

3

I submitted a written purchase contract offer. The buyer I have lined up is verbal. I am not concerned about the buyer. I would like to get the property under contract first if possible.

4

The first thing i would do is find out how much your verbal buyer is willing to put down.If this person is that serious then they will have no problem with it.Tell them also that it will be NON-REFUNDABLE.Then i would probably tell the agent what you plan to do.If you have a good chunk down then this will tell them that you are serious.Those agents make money on the sell,so if you present something serious then i dont think you’ll have a problem with the agent.

5

You can get a proof of funds letter from a hard money lender. Some don’t even check your credit.

6

Thanks for the advice. I did begin working with a hard money lender this morning. However, there was another offer significantly more than mine and I am not willing to pay that much. Not enough profit. This was a good experience and will be further prepared for the next!

7

A Hard Money Loan is not considered a cash deal, but more of a private mortgage. Be aware of that because phrasing the contract as a cash deal will cause additional addendums to be added, more time and money.

8

GSuccess1: Excellent. Gotta start somewhere. Happy/prosperous investing!

9

Good point RGChamp! As I continue to search for more properties, I am trying to refine my purchase contract. Anyone have one they want to share or are willing to review mine?

10

Since I’m not an attorney, I cannot review contracts. Right now, I use the State contract for my state (TX) and add an addendum that includes standard “investor type” contingencies for my protection. The TX contract also has an option period, so sometimes I use that instead of any contingencies if I can pay a low amount for the option period.