I am in the process of writing a purchase agreement to a realtor on a listing of his. The house needs significant work and the realtor knows that. He also knows the owner is asking way too much for the house because of the repairs needed. If my contract is accepted and I am then unable to find a buyer to wholesale to, is there a way I can get out of the contract? I don’t want to show the house before I have a contract and have someone go around me to the realtor. Any ideas how to work around this? Thanks!
Just add a clause in the contract such as
Offer contingent upon the approval of property inspections by the buyer, inspections will be completed within 10 days of an accepted offer. If the results of the inspections are not acceptable to the buyer, the buyer may terminate this aggreement, and the contract will be considered null and void.
You also might make your earnest money deposit contingent upon the approval of inspections. If your realtor asks why just tell them that you cant afford to go around writing checks on every property that you make offers on. Add that you will happily deposit the required amount after you have cleared the home inspection.
Then show your buyers and use their non refundable deposit, as yours.
Be sure to sign the contract and/or assignees if you intend on assigning the contract.
Eric Medemar
Thank you Eric…I appreciate your help!! Now I hire the inspector correct?? And if I remember correctly, an inspection runs about $150 to $200?? Thanks again.
Do not pay for an inspector!!! Let the investors to whom you are flipping do the inspections.
Got it!!! And thank you!!
Personally you shouldn’t be wholesaling unless you have the financing in place and expect to buy the home in case you can’t wholesale it. Your intent should be to buy the home and if you can wholesale it then kudos to you. Again my opinion.
Nate-WI
That is why you should have the HML in place. IF it is a deal, AND you have to close it yourself, then you can . However, everybody has had to back out of a deal because of things they did not miss. My theory, however, is that the buyers I send to look at the property are going to tell me of the bad stuff and let me know if it is not a deal, so I don’t need to pay for an inspection. In other words, if I have a deal on hand, there won’t be a problem selling the contract. If I missed something that causes it not t be a deal, then my investors have saved me the money.
Just my opinion.