OfflineHi Everyone,
This is my first time coming to the forum and I really love what I’ve learned and I can’t wait to jump in and make this part of my life. I’m currently getting all my ducks in a row, creating my website, getting my robotic messaging system in place, etc!
I’d like some clarification if anyone understands the rationale for something I’ve read or misread in Chapter 8 of the book, PROFIT FROM REAL ESTATE RIGHT NOW!! Under the section that discusses the “Assignment” sale, it gives a list of ways to assign contracts with the least amount of resistance and it mentions finding my buyers first, and I completely understand that conceptually. The book then mentions that I’ll want to help the new buyer run through his due diligence checklist and the new buyer will want to have the property inspected, get insurance on it etc. Did I understand that part correctly?
If this is an assignment situation, and the buyer has cash (doesn’t need a bank loan) to purchase, and it isn’t necessary for me to disclose my investment goal objectives to him, then why would I be helping him with his due diligence? Isn’t that his responsibility? And if I helped him with it and he finds flaws in the property that ultimately got him to back out of the deal, wouldn’t that be counter-productive for me and the entire premise for investing?
Did I misread or misinterpret this part? I certainly want to be forthright, and above board in my practice of investing, but it seemed that this was going above and beyond and almost appeared that I would be shooting myself in the foot if I helped the new assignment buyer potentially see things that should have been his responsibility to discover.
I would appreciate anyone’s insight and I’m grateful to be here learning among like-minded people. Thanks in advance. PJ
hi pj,i'll give you my opinion for what it's worth.if you have a buyer that needs a loan these things will most likely be required so help him/her along to make closing as seamless as possible,however if it's a cash buyer as you say,i guess it's personal preference.on the one hand he may see things that'd put him off,on the other hand you've had the seller sign the disclosure notice and done your own personal inspection of the property.you should hopefully already know what you have.again,just my thoughts,hope it helps,rob
whether you think you can or you think you can't, you're right.- Henry Ford
keep moving forward, rob
I been at this awhile and still looking for my first deal.I know a buyers list is a important tool,but can you get a first deal without it if you have little money.If anybody has some good advice i like to hear it.
mike
pj rob said it best ,it depends on the situation your end buyer is in financially but you have a point about shooting yourself in the foot.IF the property is in good shape there should be no problem if you are not trying to hide anything also if they r getting a great discount on the prop then they may expect to do SOME REPAIRS in my opinion also i feel it is up to them to do their due diligence BUT the key is in speeding the process up on your end and if they are going to get an inspection YOU will have to make that decision based on your current situation.
mike -i only had i assignment deal locked up on paper and i DID explain everything up front to the seller and i had a couple months to find a buyer.I did not find a buyer before the contract ran out.the seller was mad at me even though she was aware what i was doing.I STRONGLY suggest as all the coaches do to build a buyers list first,it will save you a headache!!
jay
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