Question for people doing flips - Posted by Scott

Posted by BIGDADDY(MD) on July 21, 2002 at 22:17:55:

I think you need to take some time to study Options.

Question for people doing flips - Posted by Scott

Posted by Scott on July 21, 2002 at 21:03:02:

I am wondering what to tell a seller when your trying to flip a property. It takes me about 2 months to get a qualified buyer for a property. What do you tell the seller and how do you write it in the contract. Do you just tell them that your going to flip the property for an enormous profit? If I can’t get anyone funded I cant buy the property should I also tell the seller that.

My main concearn is what to tell the seller about the 2 month period when hes waiting for me to close on the home and give him the cash I promised. Does anyone have a contract that will tie it up this long?

Re: Question for people doing flips - Posted by Kristine-CA

Posted by Kristine-CA on July 22, 2002 at 24:21:58:

Unless you use a straight option, you tell the seller when you will close, put it into a contract and you make sure that you or an assignee closes on time. I think 60 days is a long time, unless the seller is motivated and has had no luck marketing the property. Some sellers will have no problem with this but for some, 60 days is too long to wait to take a low offer.

You can tie it up with a standard purchase contract that states you will close in 60 days. I don’t use weasel clauses, but you can read all about them here on the site.

You can also read about straight options on this site, which is where most of the concerns you mention in your post are eliminated. You have the option to buy at a set purchase price but are not obligated to exercise your option.

Happy reading…Sincerely, Kristine