Posted by vince (Sacramento) on April 22, 2002 at 22:12:31:
Make the contract contingent upon approval by your partner “Bob”. Gives you an out if you can’t find a buyer before the deal closes.
Subject To question - Posted by Mike WA
Posted by Mike WA on April 22, 2002 at 17:36:50:
When you guys are writing the contract on a sub2, do you write in an addendum somewhere that the contract is “subject to securing a tenant/buyer.” If so, how do you explain that to the seller, especially when they’ve been trying to sell and rent the house for the past 5 months? Thanks.
Re: Subject To question - Posted by Scott Ashbaugh (MI)
Posted by Scott Ashbaugh (MI) on April 22, 2002 at 22:50:27:
Yep, I write it right in when the market is soft, or if I’m not sure if I can get someone in right away. I let them know, IN WRITTING, they are responsible for the payments until I get someone “qualified”. And Mr. & Mrs. seller that means if thats four months then it’s four months worht of payments. Stay in touch with them, give them updates on what your marketing is telling you. If it does take that long, then you both have other problems, the payments may be too high, the proerty may really be overvalued for the current market, etc. Adjust your offer, or payments. Maybe the seller will have to cough up a protion of the payment until they get cashed out. WHAT IS THEIR OTHER OPTION?!?!?! Lay it out there for them to see the reality of what you are hearing from your people that call on your advertising.
Everyone won’t buy into this, BUT, that’s better than “getting a deal” that you are now making payments out of your own pocket on, month after month because the seller owed too much or has too high a payment, As Joe Kaiser says, and I love this, “We ain’t the flippin tooth fairy!” It’s not our problem, unless we are ready, willing, and able to take it on. If we have a plan that we are confident with.
My very fist subject to deal I did this on, and I felt bad, but that was the only thing I could do. I didn’t have cash at all to put into payments. They acted a little upset, but Mr. Realtor had done absolutely zip for them so far and they were at the end of their rope. Then later tht night at home I was penciling the numbers again and I realized that the sellers had no equity and they were going to pay the realtor over $17,000. in realto commissions, OUT OF THEIR POCKET mind you because they had serp equity in the property and they had already dropped their price to just what they owed. They can’t complain about a few or even several payments, REMEMBER YOU ARE HELPING THEM OUT OF A DEAD SITUATION, AND YOU ARE CHEAPER THAN REALTORS IN THIS CASE!!!
Go and get 'em!!!