OfflineA while back I came across a disclosure statement for the investor to disclose that he/she intends to immediately resell the property for $XXX.XX more than the investor paid the seller and that the seller understands that the investor intends to make a profit from the resale transaction.
My question is why would this be necessary when you include "as assigns" next to your name in the purchase contract? I thought we only needed to explain to the seller that you could resell if you want to. Also, why can't that be included in the purchase contract? When would this investor disclosure be warranted and would it be required to be part of the purchase contract that the buyer would see?
Thanks
Always striving to move forward toward better times!
Verna (newage8767)
To make sure the seller doesn't come back on you and say that he/she didn't know you were going to resell at higher price and you screwed them out of money with your advanced knowledge. This form of litigation does take place especially when you get a super deal. (Think $10,000+ easy profit)
I do not believe in the no win scenario
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So then we would disclose at signing by saying my partners and I will do rehab?
And then add it in the contract
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I never used an Investor Disclosure Statement and Seller's Acknowledgement contract for my wholesale deals but Trey is right the seller could possibly come back and make a big deal about it if you made a lot of money. Also you can just use the double close method if your wholesale fee would be more then $10K. That way the seller and the buyer wouldn't know how much your making. Hey but in most cases the sellers is desperate and really doesn't care what your making as long as you help them sell the house.
Reynold Orozco