Has anyone ever posted to Craigslist, Facebook or any other site a property that they have spoken to the owner. And once a buyer says yes with POF and maybe EMD has committed to purchase said property. Than contacted owner and made an offer, letting the owner know that the offer is all cash with POF and EMD. And can close within 30 days. What are the implications of this strategy. Is this ethical? Is this possible?
Norm,
I don’t ask for a POF because it’s a all cash deal. I require on the buyer’s side a 2500 non refundable EMD for any new buyer. I market to Craigslist with my contract. Most of the tire kickers want put down 2500 cash so that weeds them out.
But what if I did everything reversed and lined up my buyer before presenting the offer to the seller.
Several times after I got the lowest price from seller but I didn’t think anybody wud want it at that price, and even though I didn’t have it on contract I did have a price and I wud send it out to my buyers. I wud add 5K & If I was getting calls and interest, I wud hurry and get my contract signed by seller and continue marketing.
It didn’t always work out, but it often did. If nobody wanted it, I didn’t have to waste mine and sellers time. Most times I send my purchase contract by email and seller signs it and gets it back to me in a few hrs, sometimes they are old and don’t have email accounts and I have to do things the slow way.
I have never asked for an earnest deposit or proof of funds. If an investor wants it and starts escrow, it’s done.
I’ve experienced 99% of investors that say they want to buy it, they do.
I believe that I can do this, I have one well below 10k. ARV is around 46K.