I am new to fliping houses without first owning. I have a couple questions.
Which is the better agreement to use, assignable purchase contract or Option to purchase contract?
This one has already lost a deal for me due to my inexperiance. Do you guys let the seller know that you plan to assign the deal to someone else? I did and it scared the selller out of signing. He says i’m just a “unlicensed agent”
However if you do not let them know that the end buyer will not be you, then how do you explain yourself when you start asking to show the house to other investors?
I might be in that boat soon myself. I’m thinking about doing a double close instead of an assignment. As far as showing it to other investors, I treat them as my “partners” and I communicate as such to the Seller. I put in the contract that I’m to have reasonable access to the property to show partners, inspectors, contractors, etc.
If you are planning to assign the contract or do a double closing, can someone offer an appropriate explanation for a person who claims you are just an “unlicensed agent”? If someone said this to me at this point I would stumble a bit to explain why that’s not true.
Ive done a little over 40 double closings in the past year. Ive had numerous people say im an unlicensed agent. IF they are getting a price that is acceptable to them then whats the problem. You can be nice but firm at the same time. If the people need to sell then they more than likely will not walk from the deal. You have them on the edge and the court is yours. You dont have to be rude but you are in charge not them. Practice possible scenarios at home, in your car on the way to the house. I had one gentleman try to up the amount by a few grand or he was going to pull out, i knew he needed to get into a nursing home asap so i told him to pull the deal and im out. He came back the next day begging to sell. This point you are in control and could have probably bought it for less but i felt bad for the guy and went through with the original agreement. Always believe you are the one in control. What is also nice about double closings is the person buying the home from you will never know what you paid. The courthouse only records one deed on the house if its done the same day. Well let me say thats my experience in the states ive dealt with im not sure if its the same in all but you can always find out from any local title companies. Remember stay in charge and always know you have the advantage because you have reviewed scenarios in your head and are ready for them.
keep reading and trying to learn all you can. There are deals on various other parts of real esate that you can make money on also. Keep studying, joining clubs, TALKING to everyone you can. I was in epcot this weekend and made two contacts that are working out stannding in line for a ride. you never know who you are talking to. The person who looks as though they are on their last dollar could be a millionaire and looking to make more money. Oh and always have a business card on you, if what you have to say to someone has interested them they will ask for a numer and contact info. It helps you look more professional. You could make them on your computer and buy the card stock. Its fairly cheap.
I think we newbies just need to hang in there. We just need to keep working and gain the experiance neccessary to handle situations that we encounter with sellers.
As far as being refered to as an “unlicensed realtor”. Next time I will simply point out all the benifits to the seller by dealing with me that he doesn’t get with a realtor; such as he pays no commission and I will actually work hard to get his house sold fast because I don’t have the luxury of just listing it on MLS and sitting back and hoping someone else makes the sale.
I want to sure to cover my behind and avoid any psssible leagal problems, so do plan to give full disclosure. I will let them know and confirm that they understand that I will be assigning the deal.
Just an FYI, I had found a house that I was interested in flipping. It’s a free & clear property. However, the owner said explicitly that he didn’t want the house flipped. He scratched out the “and/or assigns” in the contract.
I’ve thought about doing a double close in order to flip the property w/o an “and/or assigns”. What it looks like I’ll do is just bird dog it, & use some of the profits toward my marketing efforts. Just relaying an experience to anyone interested in hearing about it.
I’m certainly not in a position to be advising anyone, but sounds like this seller is not very motivated. If the equity is there? birddoging it may be your best option.