Re: Angry Sellers - Posted by Matt_MPD
Posted by Matt_MPD on March 07, 2002 at 18:52:57:
- Buying houses all cash is telling agents/sellers that you are coming in with very few if any contingencies such as needing to sell another house to buy their’s. Of course you may still have (and should) your lawyers’ contingency, inspection clause etc., but you won’t need to find financing from a conventional source so you won’t have to wait the extended period that a typical buyer would. They expect you to have your financing already in place meaning you don’t need lender’s approval to purchase.
I have begun to attach an addendum to my purchase offer contracts which allows me to attain financing even though I’ve listed the offer at all cash so long as it doesn’t interfere with the agreement i.e., I may, at my discretion choose to borrow funds from one of my lenders however I’m waiving financing contingencies which usually state that you get x days to secure a loan at x% interest with x points. Each of these x’s are blanks on a standard contract here in IL. By offering all cash this whole paragraph gets crossed out of the agreement but my rider says I can still get money from a lender as opposed to using my own funds. I’ve never had a seller balk because the time frame doesn’t change nor do the costs to him/her.
Ethical?? Not sure if there is any question about whether or not you would buy a property under the right circumstances so even if you did decide to assign every one of your contracts it could just be that none of them suited your particular needs but another investor wanted them for himself. Not a question of ethics here.
If the house is REALLY bad it’s not like you have to tell them. They obviously know. Your offer will speak volumes. You don’t have to be rude when you make your evaluation of the property so there shouldn’t be any reason they would be offended. A low purchase offer can have a proposed estimate of repairs if you’d like to make a statement explaining your reasoning for the figure but I’ve never found a situation where it was necessary. They know the property is in bad shape which is probably one of the reasons they want out in the first place.
Remember you’re in business to find situations that you can solve with any means at your disposal. You are not trying to be a counselor or dig someone out of a hole they may have put themselves into. Your job is to find these situations and find the little benefit you can bring as a service and you’ll get paid for that service.
MPD Investments Inc.