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Cash Buyer for my Rehab wants to talk to the Original Builder??

Posted on: Wed, 06/01/2011 - 10:55
Cash Buyer for my Rehab wants to talk to the Original Builder??

I have a cash buyer who is interested in purchasing my rehab. I have it locked up with my seller. My seller bought it from from the guy who built the actual house. That guy walked away as he couldnt finish it and sold it to my seller. So yesterday I am doing the typical back and forth with my interested party and he asked me if I could get the number for the guy who built the actual house?? WHAT?? "He just wants to learn a bit more about the house". Now I have told him everything that was told to me by my seller, but he is afraid its getting lost in translation. My comment,"Listen the house is unfinished and it speaks for itself. You looked in the windows and saw for yourself that it is solidly built and has just not been finished, what is the builder goign to tell you that I havent"? His retort was, "I have been doing this a long time and I always try to talk to the original builder to get a sense of the property and why is in the condition its in". Now Im not giving him my sellers number here (as he could just wait me out and then go directly to my seller for the sale) I would be giving him the builders number. Now again, I havent committed anything yet, just looking for some input here. Does anyone see a threat to the deal if I do decide to give him the builders contact info? The only thing I would proactively do here is contact the builder myself to "set the stage" a bit and explain that "I have an investor that I am looking to partner up with on the property, would you be willing to talk to him for a bit?" Since the builder has no interest in the property it could only help this guy make a decision quicker, right?

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Posted on: Thu, 06/02/2011 - 12:19 #1
Bump Has anyone who has sold

Bump

Has anyone who has sold a rehab ever encountered a potential buyer who wanted to do such a thing and do you see any threat to the sale by maybe doing a conference call with the builder, me and the potential buyer?


Posted on: Thu, 06/02/2011 - 22:15 #2
msully1090

If the guy does this all the time he would know that he can get the builders name and then phone number from the county tax records. If you have an assignment deal and you are not putting up the cash, yes you take the chance he will wait you out. He could also get your sellers name and address from the tax records too.

As long as your upfront with him and he understands that you are an investor and you do this for profit and you will be making a profit from him or someone else.

I would at the very least start looking for a back up buyer. Hope this answers your question.

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Posted on: Thu, 06/02/2011 - 23:44 #3
I would...

Cloud the title, and give him the number. OR, tell him you'll let him contact the buyer, only on a 3way conference call (with you, the buyer, & the seller). I mean, yes you're taking the risk but at the same time, you're covering your butt. Also, I'ld be looking for a backup buyer too. Because, IF in fact he does choose to go behind your back & do that, when they go to closing, they will have to pay you before the transaction would close. I believe it's called Memorandum of Option, and you file it with the county recorders ofc.

msully1090 wrote:
I have a cash buyer who is interested in purchasing my rehab. I have it locked up with my seller. My seller bought it from from the guy who built the actual house. That guy walked away as he couldnt finish it and sold it to my seller. So yesterday I am doing the typical back and forth with my interested party and he asked me if I could get the number for the guy who built the actual house?? WHAT?? "He just wants to learn a bit more about the house". Now I have told him everything that was told to me by my seller, but he is afraid its getting lost in translation. My comment,"Listen the house is unfinished and it speaks for itself. You looked in the windows and saw for yourself that it is solidly built and has just not been finished, what is the builder goign to tell you that I havent"? His retort was, "I have been doing this a long time and I always try to talk to the original builder to get a sense of the property and why is in the condition its in". Now Im not giving him my sellers number here (as he could just wait me out and then go directly to my seller for the sale) I would be giving him the builders number. Now again, I havent committed anything yet, just looking for some input here. Does anyone see a threat to the deal if I do decide to give him the builders contact info? The only thing I would proactively do here is contact the builder myself to "set the stage" a bit and explain that "I have an investor that I am looking to partner up with on the property, would you be willing to talk to him for a bit?" Since the builder has no interest in the property it could only help this guy make a decision quicker, right?