After meeting with a motivated seller and have agreed to purchase the house for cash, how much time is alloted to you after signing the purchase agreement contract to get the cash to the seller? Or, can you work up a way to put it under contract without giving the seller his/her money until you flip it to a retail buyer?
Howdy S&M:
You can play it several ways. You can assign the contract unless forbidden in the contract and get your money before the closing or get part at the assignment and the balance at the closing or do a double close where you still will not have to use your money. The funds will ultimately come from the buyer. Everything is done in escrow until all parties have signed and the money is transfered from the buyer or their lender. You will never have to fund unless you just want to if you can not find a buyer and still want to own the property and still try to sell or just want to keep as a rental.
Thanks tedjr for the advice. So, if I am understanding you correctly, I will never have to put up any of my own money unless Iwant to buy the house myself and use it for any purpose, i.e. rental property. However, if I don’t I don’t find a buyer or a investor to assign the property to, will the contract become null and void after a fertain period of time has elapsed? If that the case, will that have to be included in the purchase aggreement stating that in so and so time, if the I am unable to find a buyer, this contract in null and void? What would be the best exit strategy if I am unable to find a buyer or investor to take assignment of that property? Once again, thank for the advice tedjr.