Hey guys. Just joined the forum and wanted to give a shout out to everyone here who has contributed to such an excellent forum- loaded with valuable information, I appreciate it!
Anyways I had a question.
Say I have a house under contract, house is occupied and I have the intent to wholesale the deal to one of my investors . How do you folks go about showing the property to multiple investors without drawing suspicion to the seller that you are not actually going to buy that house.
Are the occupants tenants or owners? Not that it matters. But what’s wrong with saying, they are your patners, or simply take a digital camera along with you and snap, snap, snap.
You should have put it in your contract that you will be wholesaling the home not buying it. Honest is the best policy. Did you put it in your contract that you will be wholesaling?
Ashon the occupants are owners. and I understand there is nothing wrong with partners looking through the house so that sounds right.
Real Estate Seller- I always hear mixed feelings and responses regarding disclosure of a wholesalers true intent, because some owners don’t like knowing that you are not personally buying their property.Therefore potentially tieing up the property while looking for a buyer. I do agree with your philosophy that honesty is the best policy. Was just curious how you folks went about it.
My contracts have a right to assign clause in them? How do you go about wording your contracts and verbalizing your intent to the seller when wholesaling?
Iwould like to know some of trhe same questions here in RI.
I live in Rhode Island and I would like to know how to get started in todays market, when forclosures are at an all time high here in Rhode Island.
The best thing to do in these situations is to be honest and straight forward with the seller from the beginning. Tell them that you aren’t planning on buying it for yourself but you have a list of investors that can purchase it.
If the seller has a problem with that then simply tell them that you have plenty of other potential deals to attend to and tell them to contact you if they change their mind. This will create that fear of loss in their mind and will most likely get them to cooperate with you.
This is how I handle it. Once I get it undercontract, i inform the seller that I will need access to the home prior to closing. I will be having my contractors come through and getting a cost put together for me that way after closing we can hit the ground running. I then inform the buyer that I have the house undercontract and when we are going through the house ( always accompany the buyer in the house) to act like they work for me as a contractor. Your buyer will understand or make them understand. I always tell my buyers that the seller is alittle on the goofy side and we don’t need to make them think anything different is going to happen other than them getting their cash at closing. Just make sure you’re not taking 20 different people through. You should know your buyers and know if they’ve done their homework prior to the appointment. If you can pull comps for them and have all the info in a nice little packet. Seasoned buyers don’t need the comps they usually know what it worth before they get there. I’ve done several this way and as long as your buyer understands what your doing you shouldn’t have any problems.
Don’t worry about the what ifs just do it.
In this situation it sounds like the sellers still live in the property, or the property is occupied with tenants?
Anyways, what you can tell the seller is you will be bringing some guys by to inspect the the house, such as a couple of your contractors, your a/c guy and electrical and plumbing. Just warn your buyers of the situation, so they are prepared for any questions that may be asked by the seller directed towards your buyers.
This is my “business partner”, not my “partner” you might look super flaming. :razz lol.
It really is the word to use, and they never question you on it. It does make you look professional.
You don’t have to have a clause that says your going to wholesale it not buy it. One reason is that plan may change.
Have a clause that says you will need access to show or inspect for many reasons and a laundry list of possibilities. Contractors, repair people giving bids, potential lenders, other investors that may partner with you, investors or buyers that may prove to be a better match for the project then you at the present time, and any person who is helping you with any of your due diligence.
That can be lots of people and a owner will expect there may be many visits, and I have them initial that clause to implant the possibility. For tenants I pay $10 or $20 each time I disturb them, and tell them it is a little gift for their help and thank them and that seems to eliminate objections. And it starts the ground work for their future cooperation.