Wholesale/Bird Dogs question

Bird Dogs, Wholesaling
1

Hi everyone,

I just began venturing in wholesaling and got a private seller to agree to an ALL CASH offer of an amount that’s $100k less than its actual market value. I had an agreement with a $500 EMD but then the seller asked for several thousands more the next day and I don’t have it.

But then the private seller told me, whatever my associates pay over $795k (market value is $895k), the seller will pay me the amount over $795k as my fee.

Is there a contract I can get that protects me both legally and financially?! And, now I have the potential to generate an income from both the seller and buyer.

Any strategies and recommendations on this?! I really want to sell this property to my buyers and am not a licensed realty broker, and I can’t get the contract in my name unless I get a few grand to put down, which I don’t have. What would you do if you had an opportunity to receive a fee from the seller and buyer?!

Thanks for your time!

2

Congratulations on getting your first contract. That’s a big hurdle for most newbies!!

Forget what the seller says he wants. You’ve got a signed purchase and sale agreement (theoretically speaking), and that’s that.

Just follow through on what you promised in the sale agreement.

3

The laws of your state will likely and effectively force the seller to sell to you at the stated price and terms.

This is called ‘specific performance’ which essentially means, a seller has to sell, but buyers don’t have to buy.

I’ve had sellers try to back out of agreements with me from time to time. Or they want to renegotiate the price or terms once the contract has been signed.

It’s up to you how you want to proceed, depending on the profit margin.

The problem for you is that no judge will rule in your favor if it were to go to court, because YOU are a professional investor, not a residential home buyer.

However, you can mess up the seller’s title by recording a memorandum of agreement against property, because you DO have an enforceable contract to buy.

Meantime, you don’t have to go to court to mess up the seller’s title and keep him from selling to anyone else.

However, again, the seller is stuck in his tracks and MUST go to court to remove your lien. Meanwhile, the seller can’t get a clear a marketable title without your cooperation, or without going to court.

This all works in your favor, as long as you have a bonafide contract.

If not, and you record a lien, you’ll lose in court and possibly get judgment awarded against YOU, …and a fine. This will show up on your credit, if you lose, or the judge determines that your agreement is not valid.

I’ve recorded many MOA’s on seller’s properties anticipating the seller attempting to back out. So far, it’s worked in my favor, because I ‘do’ always have a bonafide, enforceable agreement BEFORE I record the lien.

Just for giggles, I’ve had sellers offer to pay me to walk, if I would remove the lien. That’s called, “Being paid NOT to buy.”

:beer