OfflineWhat happens when you have a property under contract and can't find a buyer to match it with?
How do you legally void or cancel the purchase agreement with the seller?
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P.S. - Everything else is immaterial, irrelevant, and unnecessary.
contingent on buyer getting financing
Ron hatton
You make sure that you have exit clauses in your contract so that you can cancel. This will protect you.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
http://www.deangraziosi.com/real-estate-forums/contracts/13540/escape-cl...
"offer contingent to financing and/or inspection" is fine as long as you can justify/prove the reason for pulling back, but how do you go about wording it to protect yourself in the event of not finding a buyer for the property.
In other words, you can't just say you can back out if you don't match a buyer to the property, that will never fly with the seller. I understand you can make up any excuse to back out, but ethically what would be the proper clause to use if you simply want out because no one on your buyer list is interested in the property?
I'm sure this topic must have come up with many other wholesalers. No one wants to have their signature on a contract that they can not fulfil.
P.S. - Everything else is immaterial, irrelevant, and unnecessary.
"In other words, you can't just say you can back out if you don't match a buyer to the property, that will never fly with the seller."
Why not? If you are dealing with a motivated seller and are totally transparent with them and they are aware you will assign the contract..."Agreement subject to buyer finding a suitable investor to assign contract to in 15 days". Tell the seller, "This doesn't look like a deal I can get involved in, but I have some other investors who it might be a fit for." If they are truly motivated, it won't be a problem.
You can also put "contingent on partner approval". If you don't find a buyer, just say it did not fit what they are looking for.
So you have decided to start looking for your own deals now, hunh?
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Thank you all for the advise. Transparency is the best approach.
Karen, I've found one that does not suit me, but might work for someone else. Since I'm usually not on the wholesale side of things, I don't have a buyers list. So naturally, I'm concerned about signing a contract without a solid exit clause.
P.S. - Everything else is immaterial, irrelevant, and unnecessary.