Buying a property under contract?

[EdRenkema]

I have possibly 2 leads from tired landlords and would possibly like to buy one or both under contract.
Can someone summarize quickly how to do it?

 

[GaryMcGowan]

QUOTE (EdRenkema @ Oct 5 2010, 11:47 AM) I have possibly 2 leads from tired landlords and would possibly like to buy one or both under contract.
Can someone summarize quickly how to do it?

Not sure what you are asking,
Do you want to get them under contract and sell the contract?

 

[JimWhitelaw]

Quick-and-dirty, don`t try this at home or without-proper-safety-equipment explanation:

Option method:

1) Get an option to purchase at your agreed price.
2) Get a buyer for the property.
3) Get the seller to buy back the option for the amount of your lift, to be paid on closing.
4) Your buyer purchases directly from your seller at the higher price.

Assignment method:

1) Get an accepted offer on the property.
2) Get a buyer for the property.
3) Assign the sales contract to your buyer for an assignment fee.
3b) Optional: Amend sales contract with new buyer name (banks like this).
4) Your buyer purchases directly from your seller.

I think some lawyers like the option method better. Either works. In any case, fully disclose to your seller that you intend to flip the property and make a profit. Make them a signatory to your assignment contract if you use that method.

 

[JimWhitelaw]

Oh, and here`s another one that I`ve seen used:

1) Get an accepted offer on the property with a very low deposit (say $10) and a very very long condition period (6-8 wks).
2) Register your contract as a caveat on the property. That way you tie the property up while you find a buyer.
3) If you can`t find a buyer, don`t remove conditions; agreement collapses.
4) If you do find a buyer, proceed with assignment process.

The ethical implications of this technique are left as an exercise for the reader.

 

[EdRenkema]

QUOTE (JimWhitelaw @ Oct 5 2010, 02:13 PM) Oh, and here`s another one that I`ve seen used:

1) Get an accepted offer on the property with a very low deposit (say $10) and a very very long condition period (6-8 wks).
2) Register your contract as a caveat on the property. That way you tie the property up while you find a buyer.
3) If you can`t find a buyer, don`t remove conditions; agreement collapses.
4) If you do find a buyer, proceed with assignment process.

The ethical implications of this technique are left as an exercise for the reader.

Thanks Jim, in this case I`d up the deposit to $100 (big spender eh?)

 

[JimWhitelaw]

QUOTE (EdRenkema @ Oct 5 2010, 07:29 PM) Thanks Jim, in this case I`d up the deposit to $100 (big spender eh?)
This coming from the guy who told me he`s too cheap to pay for cable TV!

 

[EdRenkema]

QUOTE (JimWhitelaw @ Oct 5 2010, 06:39 PM) This coming from the guy who told me he`s too cheap to pay for cable TV!

Nope this would simply be an non-utilized service, now that RLG has videos on the internet I`ve got all the entertainment I need!