Posted by Geoffrey Faivre-Malloy on December 09, 2000 at 22:59:03:
Nope. I’m actually starting this with about $2000 to spare. Can’t afford a bunch of bum deals and lost earnest money.
I’m just looking at the worst case scenario - I.E. What happens if I make a mistake on the calculations of MAO and I can’t find a buyer to sell to before I’m supposed to purchase. Can I back out because, quite honestly, I don’t want to rehab these houses (yet)! 
tie up contract - Posted by FBP
Posted by FBP on December 07, 2000 at 22:19:25:
What do I put in a contract to tie up the property until I can find someone to wholesale it to?
IF you can give any suggestions, Thank you in advance!
Thanks,
newbie
Re: tie up contract - Posted by dewCO
Posted by dewCO on December 08, 2000 at 16:45:57:
You can use an inspection clause with a late date, if the seller will allow that. However, as the pros here say, you had better be ready to close even if you don’t have that next buyer found in time, or you shouldn’t be doing flips.
Re: tie up contract - Posted by Geoffrey Faivre-Malloy
Posted by Geoffrey Faivre-Malloy on December 08, 2000 at 20:46:29:
Ummm…this may be a stupid question…
But…why? As I understood it, all you have at risk is your earnest money when you sign the contract.
Is this not the case? Can I be forced to purchase the house?
Just curious…
G-Man
Re: tie up contract - Posted by dewCO
Posted by dewCO on December 09, 2000 at 19:45:27:
Depends. If it’s a specific perfomance contract (instead of liquidated damages) then a seller could drag you to court to try and make you perform (which would be to buy the property).
But regardless, do you want to spend your earnest money for houses that you don’t want to buy? Sure it may be a cheaper alternative in the long run, but best to avoid the loss by setting the deal up correctly. And Brent is wrong I wasn’t referring to options, although it could apply, but again, not likely if set up property.
Re: tie up contract - Posted by Brent_IL
Posted by Brent_IL on December 09, 2000 at 12:28:19:
If you have an option you cannot be forced to purchase the house. That’s why it’s an option. I believe DewCO meant that your investment career would be short-lived if you view losing option money regularly as a sound strategy.
Re: tie up contract - Posted by Geoffrey Faivre-Malloy
Posted by Geoffrey Faivre-Malloy on December 09, 2000 at 22:57:08:
Are the standard real estate contracts performance contracts?
My main problem is that I want to get a few deals under my belt so that I have some capital to work with for deals if necessary (if I can’t find a buyer and what not).
It’s actually beginning to sound like it may be better if I went with Lease Optioning instead of flipping since I’m not liable for anything including performance 
G-Man
Re: tie up contract - Posted by dewCO
Posted by dewCO on December 09, 2000 at 19:48:22:
And, yes, “tie”, as in “tie up with a contract”. Still the correct word.
No, I wasn’t referring to an option. Her question was about a contract and that was how I answered. I guess GF-M has lots of earnest money to burn if it’s not big deal to lose it.