Contracts and Offers

Title, Ownership, Contracts, and Agency
By Dallin Wall
Note: The following information has been prepared for the benefit of private real estate investors and professionals in the real estate industry, including agents, attorneys, etc., as a primer on common strategies and agreements used by investors, and the specific differences in these situations between acting as an agent or as a principal in a transaction. Please feel free to share this document with real estate professionals to assist in defining your role and rights in transactions.

Hello DG team,

I wanted to reach out for some advice on an offer I'm putting together and the best way to tackle it.

I found a property on CL with a gent wanting to sell his condo for $80,000. After doing the numbers the FMV is around $65,000. It has a tenant in place and is currently cash flowing at $300 per month. I was thinking standard assignment, offer $55,000 to get it under contract however the gent selling the property is fighting cancer and needs money for treatment. I offered owner financing which he didn't want to do and then a lease option however with time constraints I don't see this as a strong option. Standard financing is an option for me. Unfortunately I don't have the cash. He owns the property outright.

I am just starting out and am scheduled to attend a Boots on The Ground in Florida August 1-3. In the meantime, I have been trying to get quick cash via assignments of contract and/or partnering up with other wholesalers by matching up deals and buyers.

However, I have found that I am receiving emails of deals from different wholesalers with the same properties and it's hard to determine which one actually has it under contract. A lot of times it seems so many people are involved that there is no room for me. I know that ultimately it is about being the one in control, so what can I do?

I am actually trying to raise some cash this way so that I can finish paying for my advanced training! So hence, the urgency!

Suggestions are welcomed!

Thanks!

Hi,
How do I make a deal with the seller? My question is, do I call him up and say, "I'm making an offer to purchase your property for $xxxx" Or do I send him an email with some kind of offer document attached? Please advise

Thanks,
Matt

Hi DG Family!,

Hope everyone is doing well. My business partner and I have had the chance to refer some of our buyers to fellow REI who have properties to sell that are turnkey. Does anyone have any recommendations of finder fee contracts that we could use?

Thanks!

Sarah

Hoping you can help me again...

For earnest money - Is there an agreement/or what can I tell my real estate agent that they seller will get the earnest money after approval and inspection period? I want my cash buyer to come up with that cash?

Thanks

Hello to Everyone reading this. On my "FIRST DEAL" I am working on I got a potential buyer who is a "Broker & Activist" (findchicagohomesforsale.com). He seems to be legit & I'm not questioning his sincerity to help me in this deal BUT, I am concern about how much I'm going to get out of it if he wants me to have my seller sign a Listing Agreement. He knows I'm new at this and I can tell he is trying to run it his way.
Now, I talked with him about getting a commission out of this deal but I'm worried that I'm not going to make what I could have originally made if I just sold it to another investor. I have other potential buyers but they are not interested in houses in Illinois just in Indiana.

Great strategy when dealing with banks to let them know we are done playing!

1. In real estate, a prospective buyer's last and highest offer. A best and final offer is typically submitted in response to a bidding war. A seller who has received several offers will ask either all bidders or the top bidders to submit their best and final offers. This type of offer presents the most favorable terms the buyer is willing to offer the seller for the purchase of the property. In some multiple offer situations, the seller will request that potential buyers submit only one offer that is their best and final offer.

A person who makes a purchase on behalf of another person. A straw buyer is used when the real buyer cannot complete the transaction for some reason. It is not necessarily illegal to use a straw buyer, except where the transaction involves fraud or purchasing goods for someone who is legally barred from making the purchase themselves.

Straw buying is sometimes used in large purchases, such as buying homes and automobiles, where the real buyer has poor credit and is unable to obtain financing. The real buyer promises to make all the payments and may compensate the straw buyer for the use of his or her credit.

Question about Partner Agreement?

I am to partner with other/s and would you share a simple partner agreement that is legal in all states. In other words my partners might live in the same state I do Or might live in a different state.

Have found one online but wanted a recommendation here if possible?

I didn't find a partner agreement on Dean's website as in two or more working together be it bird dogging or flipping together.

For example you and I agree to Bird dog and or flip but we would be required to invest say $1000. each?
We would each get the $1,000 investment back when the property closes. We might flip a house together and invest the same $1000 and still work with cash buyers.