OfflineHey everyone,
I'm working on a deal right now, a FSBO that I'm looking to assign. I have an interested retail buyer. I plan to go look at the house with the owner in the next couple days. Connie, the owner, is looking to get at least $250K for her house. It needs ~$40K in repairs and the ARV is about $350K. The buyer knows all this, but I haven't brought up to him yet about my assignment fee.
My question is, if I get the house under contract with Connie and then let the buyers (Randi and Chris) see the house, couldn't they just wait out my contract with Connie and then just leave me and my assignment fee out of the deal?
Vincent
"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53
Do you have this house under contract? And Who is the Retail buyer? A freind?
Jay C
Were you up front with them about your fee? If you feel that they might wait out your offer, you could have plugged in a finders fee for yourself. That is why it is so important to be up front with the buyers right from step 1. At this point you might have to exit from the deal if this is what might kill it for you. A lesson learned here I think.
Jan is right Vincent. It's tough when the seller would sometimes be the one to control the situation. It's tougher when you're a wholesaler and you have a buyer who went to see the property while the owner still lives in the house. It happen to me in one of my deals right now. One thing i've learned in this business especially in wholesaling is that, we need to control the situation right from the very start because the seller needs us. We are giving them a favor because we have hundreds or perhaps thousands of buyers in our list.
Just go on Vincent and lock the property with your fee. Make sure Randi and Chris are already pre approved. Ask for a 14 day exit. Blessings to all. LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
Hey everyone,
Thank you for your comments and encouragement! I agree it is a learning experience. I'm going to keep going forward and see where it goes. I just thought about this yesterday, and I would like all your thoughts on this as well. If Randi and Chris wanted to wait me out, they still have to face the realization that I could take the property to another buyer while I have it under contract if they got cold feet and they would lose out on the house entirely. The seller wouldn't care if I brought them a different buyer, because the seller isn't the one paying me my assignment fee. Am I missing something there?
Vincent
"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53
As long as the seller have the knowlege that you're assigning the property they wouldn't care. As long as they get there entire money without them paying any commision, they wouldn't care. Most importantly, make sure you also get your piece of a pie at the clossing. Good Luck. Blessings to all. LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
could easily talk to Connie and show her they have the money on the spot and find out when your contract expires
could make an offer or already have an offer on the table right now dated the day after your contract expires
could tell Connie to give them one week before she signs an extension with you if you bring it up to her
I suggest you ask Connie if she minded signing an extension if this fell through w Randi and Chris because you have other buyers on the sidelines. If she gives you the "um,....uhhhh,....well um...." either one of the things I mentioned happened/is happening or she doesn't believe in you.
Do what you can but go with your gut if you think its a lost cause move on