Could This Be Possible???

Yes it is very possible and has probably happened many times. There is a form you can get the homeowner to sign. You have to get this form notarized and then take it down to your county recorders office and have it recorded. It costs around $40 to file it in my area. Your county may have a different price. The form is called an Affadavit and Memorandum of Agreement. It is a half page form letting everyone know that you have a contract on a property for XX ammount of days and that if anyone wants to inquire about the property they have to come to you.

This is why it is important to have multiple buyers. The person won't wait you out because you will sell it to someone else if he/she does not act right away. Let the buyer know you have others interested and he/she needs to put it under contract right away or it is going to the next person in line. Even if there is no next person, that is how you present the deal!
If you can't move the property in 30 days, chances are you paid too much and it is not really a deal anyway. I see this ALL the time, WAY more than people waiting you out and then buying from the seller.

Michael Mangham
MD Home Acquisitions LLC

Jag,

unfortunately, there are many unethical and greedy people out there, so yes, some may try to go around you to get a deal. That is why you need to have a trustworthy list of buyers on your team. By the same token, if you are not greedy when assigning the deals you find (or as some say: leave enough meat on the bone!), buyers will come toyou because they will know that you can find great deals for them in the future.

When you have a great property, send info to all your buyers. Have your buyers sign a non-circumvent agreeement before providing the address; and if one doesn't buy the property within a few days from you, go to your next buyer...

Wishing you success,

Valerie

Make sure that your assignment clause has them pay a hefty up-front non-refundable fee. Let's say that your assignment fee is $5000 for the deal; typically your clause would have them pay this whole amount or at least half ($2500) up-front, and would be non-refundable. That way if they back out, you still get to keep their (non-refundable) fee.

And as Valerie says, if they don't close, go to your backup buyer. You can always take backups when Wholesaling deals in case the initial buyer backs out (and forfeits his/her fee).

Happy Investing.

How does one obtain or generate a buyers list, whether it be for wholesale or FMV properties? I'm posted here many times, and I have REOs, foreclosures and auction properties for sale, and no one here expresses any interest in buying.

"Rick in Amarillo," Real Estate Agent

you can post on CL; you can put out bandit signs; you can advertise on several FSBO sites.
Look for properties purchased with cash buyers...
You can also google 'we buy houses for cash'
have you checked out ****?

Keep posting here in the classifieds section... you've heard about Matt's formula od 25:1... well, apply the same strategy to your situation...it may not happen after 10 posts, but you never know if it will after 25?

Start a forum thread asking for ideas on how to find buyers for properties, instead of just offering the properties?

Wishing you success,

Valerie

Have for the past 7 weeks seldom came on the site, and real estate virtually stopped for me. Found a couple houses, but nothing fantastic.
So these may seem like old knowledge and advice, it made me realize I need to remember all these little things we forget. I do have a small buyers list, but even forgot about checking out the cash buyers. And how to be more savvy about my deals for assigning.
As I did have that happen twice where someone else took the deal.
So thanks for the posts and I have a lot of houses I found in the past two weeks, and glad to be reminded about being on top of these things.

But have one question. On the assignment clause, how do we put in to pay half up front, as it isn't stated in the main contract, or the assignment contract on line.
Sandi

has the right idea because competition will stop the deal from getting to the expiration date. Things you can do to reduce your problem include getting a 45 (or 60) day agreement instead of a 30 day, having them sign non-circumvent agreements which last 90 or 180 days. These two things alone can give you enough leverage to stop any leakage that mat occur. However, if you are bringing good deals to the table, you really won't have these problems to begin with.

You would collect a non refundable earnest money check on the assignment contract with your buyer. I always do this anyway, it separates the true cash buyer from someone that wants to tie up your property while they search for a buyer. I don't mind some one bringing in their own buyer. They just need to have his money in advance before they sign a contract with me.

You are so right about what is stated in the purchase and sale agreement between you and the seller. You are assigning that contract word for word when you assign the contract to your buyer. You can collect a different amount of
earnest on the assignment contract and it can be non-refundable.

If someone puts up a non refundable earnest check you can be 99% sure they will close!

Michael Mangham
MD Home Acquisitions LLC

I agree with Michael. He hit it right on the money.