Agreement for sale

[moparcanuck]

Has anyone had much in the way of experience with Agreement For Sale purchases? Seems like a good way to pick up properties that either the vendor isn't sure about how to avoid the mortgage break fee, or also a creative way to pick up a cashflowing property that is just out of qualifying reach (darn bank caps).



Looking for good, bad, and ugly. Any templates that people are using?



Thanks all

 

[Thomas Beyer]

[quote user=moparcanuck]Looking for good, bad, and ugly.


Good: profitable if done well. Little cash required to pick up decent properties with good cash-flow if leased/optioned to a great tenant/buyer !



Bad/Ugly: hard to execute .. needs some decent experience with properties, tenants, legal contracts and human negotiations. Not a rookie game ! Many of the properties have issues .. as do the people you buy from and the tenant/buyer you place into with a lease option.

 

[BHoward]

I've done quite a few ... as a buyer ... and as a seller ... and also representing buyers and sellers (as a ReMax Real Estate Agent).

They can be easy ... and difficult.

Mostly it's easy to create a win win.

Fear stops most people from proceeding. (Buyers tend to be more fearful then sellers.)

 

[Thomas Beyer]

[quote user=BHoward]Fear stops most people from proceeding. (Buyers tend to be more fearful then sellers.)


some of that fear is justified as some buyers don't even know the AfS process !



Fear can be overcome with knowledge through education and experience !!



Hence, as a buyer, understand the concept very well, have the right agreements .. and explain them to a potential seller !!