Archive for June, 2012
If you find a new buyer after your write the offer and before you open escrow, the new buyer will open escrow with the seller. If you find a buyer after you open escrow and before you close it, the escrow between you and the seller will have to be amended to reflect the new buyer as the other party to the seller in the escrow. You will not be a party to the escrow any longer.
Real Estate Wholesale Deal Business We are in the real estate wholesale deal business! We negotiate a great deal with an owner of a property. In other words, we tie the property up. We then find a new buyer. This could be a retail or a wholesale buyer.
You may be thinking of a question here. You may have grasped the fact that flipping real estate is easy, if you are flipping property you own. If you own the property you have the title to the property in the form of a grant deed or a warranty deed depending on what ownership deed is used in your state.
(We have included in Appendix A the ownership deeds that are used in all 50 states and Puerto Rico.) After you make a deal with the new buyer and flip the property, you give them ownership of it by giving them a new grant deed or warranty deed. You could even use a quitclaim deed, as we described with some of our deals.
With the information from these investors, we wrote an offer on the property for the land value. Without our investors’ help, we would have overpaid for the property. We told the seller that the building was basically worthless.
When we were about to get back in our vehicle after looking at the inside of this property for the first time, we looked down at our clothing. We were covered in fleas! We were fresh meat that had just walked in the door.
It becomes the agreement before the real estate contract. On page 83, you’ll find an example of a simple nondisclosure and no circumvention agreement, which we use to give us protection with potential buyers of a property that we have not tied up yet with a contract.
The one caveat we will give you about flipping property before having a written offer accepted by the seller is this: You must have something in writing with the potential buyer before you give them any information about the property or the seller.
