Showing Properties to Investors Before Sales Contract is Assigned

I also would love to get some better answers. However, I did put in an offer on a place with an agent, and had the ability to assign. What I did was had the agent show up to show the property to potential buyers.
This is how.
I had told the sellers that I was working with other investors and they wanted to see the property, also had potential buyers that were interested. That was okay, but did have a couple people call about the property and one guy told me, why should he buy it from me, he'll just put another offer in if I didn't end up with it.
Other option.
I have a contract on one property and looking at another FSBO on Friday. Both know I want to assign it. This weekend I have two buyers looking at one of the properties. The sellers know exactly what I am doing, and both don't want Agents showing it. They want to sell on their own, and having a contract with me, they are glad that they aren't doing the selling. One property just wasn't getting any bites, so I called the couple and offered to not renew the contract and let them do whatever they wanted. They said they liked me a lot and know that it will sell eventually so they encouraged me to not give up. So this past week I put it on CL and have a guy from S Dakota coming to see it and another couple who want to run a business out of it.
Having a comfortable and trusting relationship with the sellers will help. I was upfront with them and they liked me enough to just let me handle it. These were sellers who called me. That helps, because that shows they are looking for alternatives. But be honest, tell them you have a buyers list and network with others, ask them to allow you the time to see what you can do for them. Because they don't have to pay an agent, they are more willing to work with you.
Sandi

Basically, this is the simplest way to show a property to investors:

1) Make sure the place is vacant, and an FSBO.
2) Make sure your agreement gives you the right to occupy and show it.
3) Also, make sure you have the right to assign it and list it with an agent at no expense to the seller if you want to do that.

OBVIOUSLY, not every property that's a good deal will fit into these 3 requirements above, and that's where Sandi's answer comes into play. When all else fails, be honest and upfront with the sellers. If you explain what you're doing and why (to the seller), they will usually go with it. Best of luck to you...

You said your buyers want to see the property, but as long as the numbers work most buyers (that I have met at least) will take the deal. So instead of having them come look at the property, you can give them the price (with your wholesale fee included), the ARV (and comps, and the repair price (with an estimate, which you can usually get free). This way they know what needs to be fixed and what it would cost. Surely it is easier to negotiate with the seller to let you have a general contractor come look at the property.

The only thing I would recommend if you do this is to recommend the GC you used to to the buyer so that you will be able to repeat the process and not waste the general contractors time.

Glen

My contracts state "Seller and/or tenant will make property accessible to show partners, lenders, inspectors, appraisers and contractors during the inspection period". That solves the problem of showing your prospective buyers. You don't need to limit yourself to vacant properties and FSBOs. I do this with REOs all the time.

It is all about how you present yourself. You don't have to say "Gee, I have no money so I am trying to sell your property to a buyer and make money". MAGOO!!!

You must control the conversation with the seller and your BUYERS. My buyers don't talk to the seller because they KNOW I control the property. I AM THE SELLER. If they want to wait me out(these guys are never real buyers anyway) I tell them I will sell to one of the many buyers already looking at this deal. That's how I present the deal to my potential buyers.

Remember, the property is not sold until it is sold. I tell the seller I need to do inspections, contractors estimates, get my money people in to look, etc. Most contracts will have an inspection period (YOURS MUST!)

A key to doing this is to have REAL CASH buyers lined up in advance! Make sure the numbers are right and it will SELL. Otherwise just move on to the next. You could miss several good deals trying to make a deal out of a bad deal!

Good luck and have no FEAR!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I think Michael covered it all...
but I may add that you want to look for properties that your buyers want; if you're putting properties under contract, and then looking for a buyer, you may end up having to withdraw your offer to the seller if you can't find a buyer within your inspection contingency clause timeframe, and that can create a sticky situation between you and the seller...
also, you probably don't want to sell the property to a retail buyer, they can be picky about what they buy, and the closing timeframe will depend on their lender...

wishing you success,

Of course you first lock up the property .I always let the seller know I am an investor and I may be reselling or leasing the property. I put in the contract that I have the right to access the property to show partners,contractors and potential tenants or buyers.I also add that I will advertise the property as soon as it is under contract.
John W

What a fantastic bunch of great comments!

I particularly like the the contract clauses you all have provided -- and the proper way to approach sellers in this regard.

Thanks!