Hello to everyone. Here’s the situation: we have 2 properties under accepted contracts with “and or assigns” in the contracts. In looking for our buyer we have come across another wholesaler who has supposedly an investor who is interested in the properties. The wholesaler who is interested in our deal is nervous about not getting some type of commission for referring the deal to her investor. So in turn, she is reluctant to complete the deal with us until she gets some type of guarantee/contract from her investor that her investor won’t back out. We have a ten day inspection clause in our contracts so that we can back out if we can’t find a buyer. The inspection period is just about up. Our goal here is to just get our money upfront and be on our way. My questiions are: 1. How many times can a contract be “and or assigned”, 2. Does the 10 day inspection clause start over once the contract is assigned to the new individual and 3. Should we tell her that as a means of giving her some peace of mind, that if her deal doesn’t pan out, she too can walk away from the deal if the inspection clause applies to her too? Any feedback on this would be most appreciated. Thanks!
Based on the date of your post, you probably ran out of time on your inspection clause, but to answer your question.
-
The inspection period does not start over when you assign. The contract you have is what is legal, any changes you want to make like extending the inpsection period would need to be done with the seller.
-
You can assign a contract as many times as you want. You could assign it to the wholesaler for a fee who would then assign it to their buyer.
First i will re-affirm that the inspection clauses go from the date the original contract was signed - and they are not effected by any assignments. You can ask for and receive extensions if you ask reasonably and the seller is willing.
However, this is also the perfect example of a mistake in wholesaling. When you are a wholesaler your best bet is to find viable buyers for properties FIRST, then find deals to sell to those buyers. If you tie up a property you then just have to call your list of buyers to find one to assign it to.
If you tie one up and THEN start looking for buyers, it is an incredibly tougher job.
Finally - when wholesaling, you want to buy from sellers and wholesale to buyers :bobble, not wholesale to wholesalers who wholesale to buyers :banghead.