Posted by Bud Branstetter on April 06, 1999 at 09:47:20:
My suggestion was to try and convince the seller you were serious. The seller does not appear to trust anyone and is beyond the norm. I use a fee attorney instead of the conventional title company.
Seller wont sign option/FIRST COME FIRST SERVED - Posted by Stephanie
Posted by Stephanie on April 05, 1999 at 20:23:15:
… found a great fixer deal 2br 1ba in a nice location
owner will take 15K down and finance 35K at 7.5% - My rehabber/investor will do it in a heartbeat, but the problem
is that the seller has stated that he wont sign the option
cuz he is doing it first come first serve… So how do I
flip this to my investor with no paper? Any solutions out
there? The seller has two other offers in the fire, and
will accept the first mans money… My investor has money
available now, HOW DO I GET THIS DONE AND FAST? Thanks NOW.
Stephanie
Re: Seller wont sign option/FIRST COME FIRST SERVED - Posted by Craig
Posted by Craig on April 07, 1999 at 10:19:44:
I think the problem is that the seller does not want to deal with someone who is going to make money on the deal without risking their own money. This may be contrary to popular belief but when I intend to buy/flip a property I tell the seller up front what my intentions are, how much of a profit I expect what my costs are and how I came to that offer. I had an offer accepted yesterday with a 60 day option. I told the seller exactly what I was going to do and he didn’t care as long as he gets his money in 60 days. It’s no use trying to hide your cards from a seller because they are becoming more and more sophisticated and catching on to the flipper’s tricks. In alot of cases they don’t care about the flipping they just want someone that is going to be up front about what they are doing. I’m proud of what I do because it is a service to all parties and I have no problem telling all parties what I’m doing and if there is a problem with it then I move on. I don’t have to worry that word gets around that I’m a sneaky investor. My advice is tell the guy you have an investor that you are going to resell to and that the investor coming up with the cash and you are making a profit. The seller will if nothing else trust you more because he probably already knows what you plan on doing with the option. Tell him that your profit should not really matter all that much to him because he is getting what he wants regardless. Do not tell him who your investor is unless you can get your investor to sign a non-circumvention agreement and pay you what you planned on making if the seller goes directly to him.
Re: Seller wont sign option/FIRST COME FIRST SERVED - Posted by Reif
Posted by Reif on April 06, 1999 at 10:58:46:
I think I missed something.
Why can’t you just write the contract and do a simultaneous close if you can get the cash?
Or do you mean he wants to see a 15K cashier’s check and then drive to the title co. to close?
I’m confused (not unusual for me).
Reif
Re: Seller wont sign option/FIRST COME FIRST SERVED - Posted by Jackie in Dallas
Posted by Jackie in Dallas on April 05, 1999 at 22:23:02:
An option says to the Seller that MAYBE you’ll buy and maybe you won’t. I wouldn’t want to tie up my property with a flimsy agreement like that either.
A purchase agreement or purchase contract says you WILL buy the property. The Seller can breath a sign of relief with one of these.
If you’re sure the investor you mentioned will take the property leave out ANY contingencies - prove to the Seller that you really mean business and he’ll sign on the dotted line.
Of course you still need to turn the contract into a title company and make sure the title is clear. Let the title company handle the closing.
Re: Seller wont sign option/FIRST COME FIRST SERVED - Posted by Bud Branstetter
Posted by Bud Branstetter on April 05, 1999 at 22:22:47:
Make out a check to the escrow company for the $15,000. Write the contract that the check is to be held uncashed until the contingency of title is established. Make sure your investor has the money in the bank.
Re: Seller wont sign option/FIRST COME FIRST SERVED - Posted by Bassman
Posted by Bassman on April 05, 1999 at 21:16:21:
No insult Stephanie , but who is in control here , YOU or the seller? If you arent in control , then walk away . There are other deals out there . But leave them your number and tell them if things change , to call you. Also give more info , like fmv , arv , and anything else you can. But never let the seller be the one in control. It may be that they are making up the other offers , just to give a feeling of urgency .
My thoughts
Re: Seller wont sign option/FIRST COME FIRST SERVED - Posted by Ryan
Posted by Ryan on April 05, 1999 at 21:10:03:
I may not know what I’m talking about, but if you’re sure of the investor’s commitment, couldn’t you write an option that would expire in 1-2 days and put up $50-$100 consideration, then immediately assign to the investor?
The seller would get a pocketful of change for only taking it off the market a short while. What is there to lose?
Ryan
Re: Seller wont sign option/FIRST COME FIRST SERVED - Posted by Stacy (AZ)
Posted by Stacy (AZ) on April 05, 1999 at 21:03:11:
I don’t really understand what this guy wants. Does he want to see a $15K cashier’s check? If you know it’s a good deal, give him earnest money and pen a contract to purchase, not an option. Then assign your contract to your investor. That should be commitment enough; as good as a check.
If he’s got some sort of reservations about signing a contract, and you know this is a great deal, I guess you could always get a hard money loan for the $15K, with no prepayment penalty, but there goes much of your profit up in loan costs once you assign it and allow room for your investor’s profit.
Is there a reason he wants the $35K note? Possibly for tax reasons? If not, I’d separate myself from the pack of offers by negotiating an all cash deal (hopefully for less than $50K), and get it under contract. He’d probably like to get all his cash at closing, but is trying to make it more attractive offering owner financing. If your investor is good for the cash, and you have worked the numbers correctly, I would definately go for the cash deal. But you’ll have to find-out if this is more attractive to your seller.
Remember, a financed $35K is worth much less in today’s dollars, so the cash deal should be less than $50K.
Stacy
Re: Seller wont sign option/FIRST COME FIRST SERVED - Posted by Alex Gurevich, TX
Posted by Alex Gurevich, TX on April 06, 1999 at 08:35:31:
Bud,
Around here title companies won’t accept personal check s in excess of $1,500, so $15,000 looks like a big stretch. Frankly, the 15K figure may look impressive, but 1K earnest money deposit on a purchase contract (not an option) should do as well.