Retail "Flip" Buyers won't commit - Posted by Jerry-Fl

Posted by Brent_IL on August 26, 2003 at 14:13:30:

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Retail “Flip” Buyers won’t commit - Posted by Jerry-Fl

Posted by Jerry-Fl on August 25, 2003 at 13:42:29:

I have a contract on a property that is in foreclosure. I have this property listed on the MLS and have had offers come in but when they find out that I am not the “owner of record” they freak out and no longer want to pursue the property…

Why is this?

JD

Why do you think? - Posted by Scrooge McDuck

Posted by Scrooge McDuck on August 25, 2003 at 22:41:13:

Could it be a seasoning issue? Many lenders will not lend if the seller has owned the place less than a year.

If it isn’t that, or some similar hard reason, then I can only conclude they don’t really want the place. If they wanted it, they wouldn’t let a trivial excuse stand in their way.

Have you tried asking them or having the RE agent ask? Why not phone them and find out?

Tip: make sure they understand that they have no obligation and you have no agenda, other than asking for information so you can market the house better to the next buyer. If you think they are giving you an excuse, let them, then ask “Is there any other reason?” and WAIT for an answer. They may just tell you the REAL reason.

Re: Retail “Flip” Buyers won’t commit - Posted by Kristine-CA

Posted by Kristine-CA on August 25, 2003 at 17:33:05:

My first flip was to a retail buyer and that got me thinking that that I could always sell retail. Haven’t sold retail since. Turns out that most retail buyers don’t have the understanding (or the funds) to buy from someone who is assigning or re-selling quickly.

Investor buyers usually understand this kind of buying. Have you thought of other advertising besides the mls?

Sincerely, Kristine

Re: Retail “Flip” Buyers won’t commit - Posted by Shawn Campbell

Posted by Shawn Campbell on August 25, 2003 at 17:17:41:

Can u exsplan why the property was a good flip canidate? because im new in real estate and studing how to do flips.

Re: Retail “Flip” Buyers won’t commit - Posted by Brent Leach

Posted by Brent Leach on August 25, 2003 at 16:07:06:

Those are people that answer to a boss for a living. They do not think that it is fair that you are self employed and making money in real estate. They think the American Dream is working 90 hours a week.

Don’t worry about it, wait till the next potential buyer comes along.

Maybe consider putting an ad in the paper saying something like " Private Investor has multiple residential properties. Call me at **--."

Of course, you can change the working as you wish. if anything this should give you a list of potential buyers, because you never know when you will come across a house that your potential buyers from the ad may want.

Regards,

Brent Leach

Re: Retail “Flip” Buyers won’t commit - Posted by Houserookie

Posted by Houserookie on August 25, 2003 at 14:58:12:

Why? Because they don’t want you to make money off them. People dont want you to make even a dime off them but they have no problem paying $10,000 in commission built into the sale price.

I would tell the seller that you have a contract to sell the property because the seller doesn’t want to pay real estate commission. Or better, the seller doesn’t have enough equity to pay real estate commission.

Cheerz,

Re: Retail “Flip” Buyers won’t commit - Posted by Bryan-SactoCA

Posted by Bryan-SactoCA on August 26, 2003 at 14:41:16:

The MLS is mostly for retail buyers. To find wholesale (investor) buyers you have to go to RE clubs or look at the We Buy Homes ads in the paper.

Re: Retail “Flip” Buyers won’t commit - Posted by b

Posted by b on August 25, 2003 at 18:55:16:

"I would tell the seller that you have a contract to sell the property because the seller doesn’t want to pay real estate commission. Or better, the seller doesn’t have enough equity to pay real estate commission."
You should only tell people that if it is the truth… don’t make up lies to try and sell, just find the right buyer, and it shouldn’t matter

Re: Retail “Flip” Buyers won’t commit - Posted by Houserookie

Posted by Houserookie on August 25, 2003 at 20:04:06:

You dont think telling buyers that you have a contract to sell is the truth? How else can you sell someone else’s house without a signed contract?

Did you say find the right buyers and it shouldn’t matter? That’s humurous. Finding the right buyer is not as simple as one might think. Find the right buyer to pay your price is even a bigger challenge.

Cheerz,

Re: Retail “Flip” Buyers won’t commit - Posted by Tom PA

Posted by Tom PA on August 25, 2003 at 20:25:44:

It has to do with the way that you stated your point. You see, you do not have a contract to sell (unless you are a Realtor and have a listing agreement). What you have is a contract to buy, which is different.

Re: Retail “Flip” Buyers won’t commit - Posted by Brent_IL

Posted by Brent_IL on August 25, 2003 at 20:38:26:

Au contraire, the contract that I use as a purchase agreement is labeled a seller?s offer to sell and convey, and gives me the explicit right to sell the property under any terms that I see fit.

I’m not a REALTOR and don’t have a listing agreement. Different is what you make of it.

Re: Retail “Flip” Buyers won’t commit - Posted by Tom PA

Posted by Tom PA on August 25, 2003 at 20:47:04:

But it is still a purchase agreement. You are offering to purchase the property. Not offering to sell the property for someone else.

Or you could say that the seller is offering to sell you the property. He is not offering you the ability to sell it for him.

Either way you look at it, it is the same thing. You are buying the property and then selling it (or selling your position to purchase). You are not selling property for someone else. Not technically anyway.

I dunno. - Posted by Brent_IL

Posted by Brent_IL on August 25, 2003 at 21:22:10:

Well, it’s a purchase contract because that’s what I use it for, and a seller’s offer to sell because that’s the way I wrote it.

The contract reads, “Seller does hereby give purchaser the excusive right to sell, the authority to offer for sale, to exchange, to let, to advertise, to list for sale with any licensed real estate broker, to place for sale signs hereon. and to sell the purchaser’s interest in the subject property on such terms as the Purchaser may agree to accept, and the terms of this agreement shall not be affected thereby.”

To me, it sounds as if the seller is offering me the ability to sell it for him.

The real reason for part of that is so I have the option of exercising a substitution-of-collateral and listing the property with a broker for a cash sale.

Re: I dunno. - Posted by Tom PA

Posted by Tom PA on August 25, 2003 at 21:49:55:

On another note… what area of Chicagoland are you in? I moved from Chicago area, Mundelein, to Pittsburgh area about a year ago. My wife and I were in Chicago almost a year and what’s funny is it’s the only place that we have lived that we truly miss. We have been considering moving back. If only those darn T/B’s would just get out of our house! LOL!

Re: I dunno. - Posted by Brent_IL

Posted by Brent_IL on August 25, 2003 at 22:10:33:

You haven’t given them enough time to default yet. We’re in the southwestern suburbs. I grew up on the other side of Pennsylvania.

On another note… - Posted by Houserookie

Posted by Houserookie on August 26, 2003 at 08:55:15:

thanks for clarifying the differences between a listing contract and a purhase contract.

Thought I was in trouble for a minute there. :wink:

Interestingly, ALL OF MY PURCHASE CONTRACTS are written subject to finding a replacement buyer.

Cheerz,