Posted by Carmen on March 18, 1999 at 10:27:03:
Actually, this situation only came about because we (thought) we had already lined up a retail buyer for the property. It’s not what I’m looking to do - yet - need to learn one thing at a time! It just so happened that a mortgage broker mentioned they had a buyer with $20K cash and already qualified for an 80% mortgage that REALLY wanted to buy a house with almost the exact specs in Boca for about $135K. If we could get the house for about $128, and get the seller to take a $7K second, and sell the house for $132,000, then the buyer would be able to get into the house - and we could walk with a couple thousand. It would have been a “retail flip” - no costs to me at all. Have since given it up - too many “ifs”. We would basically have been paid to structure the contract - but if the buyer didn’t like it, he didn’t have to take it, and then we’d have a house under contract for, as you said, retail, which is not in my plans. I’m not comfortable yet putting contracts on properties I don’t think I can sell fairly quickly.
I suppose there are ways to still do this - e.g. sign a contract with short-term weasel clause (e.g. inspection within 15 days, but stretch the closing to 45-60 days) and then go to the buyer, lock him into an assignment of contract, and give it to him so he can close within the time-frame. If no buyers found within 15 days, release the house. No hard feelings. Must get buyers lined up first, though. And they have to be willing to pay for the creativity.