Posted by Vic on April 14, 2000 at 17:49:49:
Roland,
I asked a guy about this the other day & he said to just get them to sign a non circumvent agmt. I guess you could get an attny. to draw one up or maybe if someone has one, they would be kind enough to post it. I wouldn’t think it’s that complicated of a form.
Vic
How do I prevent circumvention? - Posted by Roland
Posted by Roland on April 14, 2000 at 17:24:46:
Let’s say I find a good deal and get a contract on a property. Then I find one of these guys in the paper with an “I buy houses for cash” ad. He shows interest on the property, figures out I don’t have the money for the down payment, rehabing etc. What protects me from him waiting it out. Until I eventually have to back out of the deal (assuming I can’t find other buyers)? Maybe I’m over analyzing. Looking for some good answers.
Thanks, Roland
Re: How do I prevent circumvention? - Posted by Justin-IL
Posted by Justin-IL on April 14, 2000 at 18:20:28:
Hi Roland,
After you get a signed contract with your seller, you can record a “memorandum of contract”. This will create a cloud on the title that will prevent the seller from selling to someone else (while you’re contract is still good with the seller).
If you don’t sell in time, you can either re-negotiate for a longer closing date, or walk from the deal. The first flip I did, I ran out of time. I went back to the seller and offered him $500 more if he could go another 30 days. It was all it took.
As for your buyer “waiting it out”, he could. But if you bought correctly, you should have a killer deal for him at a wholesale price. He will realize that it won’t last long, and snatch it up!
Good luck, you’re on the right track.
Justin