Posted by Jim IL on April 08, 2000 at 14:14:32:
First, telling the seller BEFORE you have an agreement signed that you intend to “flip” it is a bad move in my book.
Most sellers will not understand what you are doing, and will be confused.
To quote John Behle, “A confused mind always says NO!”.
So, just get the property under an agreement. You are after all offering to buy the home(s).
Just make sure that you have an assignment clause in the agreement that allows you to assign it.
Many people do this many different ways.
Some say that you should after having your agreement with the seller signed, and an investor ready to sign to buy from you, that you need to have the seller sign a release of liability to assign the deal.
I personally almost never do this.
Here is why;
I know my buyers well, they close, on time and without fail.
If I get my seller to sign, then I am out some time, and face possible hassle.
So, we simply set a closing date for all THREE parties and tell them when and where to show up.
I sign docs, my seller signs docs, and so does my buyer.
The original seller and I leave with checks, and the buyer leaves with the deed.
All get what they want and it is a happy day.
Hope this helps,
P.S. I am sure that others will cover this in more detail.