OfflineWhen you are trying to get deals done with no inspection, contingencies, closing in 10 days, etc. and you can't find a cash buyer, how do you get out of the contract?
Thanks
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When you are trying to get deals done with no inspection, contingencies, closing in 10 days, etc. and you can't find a cash buyer, how do you get out of the contract?
Thanks
You generally can't get out of the contract if you have no contingencies. You should have an inspection contingency in the offer, it's pretty standard.
Hope that helps and good luck!
- Tom
It’s great that you are getting offers out there. That is the only way you’re going to make any money in this business. However, as important as it is to get offers out there, you have to make sure you have a contingency protecting you and your earnest money, and allowing you the opportunity to get out of a contract without any reprocutions. Make sure to have your inspection contingency on every offer you submit. That’s your out in the case one of your buyers doesn’t come through for you.
With that said, you can submit an offer cancellation to the seller however; any earnest money you have put down on this property is forfeited.
Is there a way to get out of the earnest money foreit besides buying the property.
Thanks
Anne
With the contract you used you will not get your earnest money back unless you buy the property. You need to give yourself an inspection clause to be able to get out of the contract and get your earnest money back. A 14 day inspection period is what we recommend. That gives you enough time to get the property in front of your investors, and if they are not interested you can back out of the contract and get your earnest money back. Also make sure you have a good list of cash buyers lined up as well.
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There are different contingencies you can use. I have done assignment contracts, which I do with FSBO and even with an agent, but you cannot do those on REO properties. Or you can do double close.
Your agent, if they were really looking out for you, would have discussed contingencies. I have the inspection, even had with an agent put contingent on financing in 30 days, also had in that same one, contingent on getting a partners approval.
It may be a good idea to get samples of contracts and look them over, and make a list of contingencies you can use.
But never even write up a contract unless you have the money to buy the property, have possible buyers lined up, but always with an escape to get out of it.
Does anyone know about a contract used when working with short sales called "release of contract" that allows you to exit and end buyer closes with the bank, you get the between difference. Alot like wholesaling, but not - it's a release, you get paid before closing when end buyer steps in. I'm looking for a copy of this special contract. It's new.