What if the Seller doesn't allow you to "lock-up" the property?

Locking up is the same as a sales and purchase agreement. If you are assigning then you need an assignment clause. If you can't assign the contract you need other funding, private, hard money, transitional. These are still no money out of your pocket- you are borrowing short term. The key is to have the buyer ready to go.

Theresa

I have a Buyer's List. If you mean by "ready to go" is that they agree and want to buy that property, then what i'm asking is about the beforehand between me and the End Buyer, that i can't lock-up the property under contract, to protect my interest, to assign it over to them. What other ways can i keep myself still in the deal before giving up the information of the property to the Buyer for them to decide if they would like to purchase?

Sounds like you could make out a Purchase and Sale Agreement with the Seller. You can have and/or assignees on it. Plus you perhaps should have contingencies such as : contingent upon partners approval and contingent upon partners getting financing. This could help until you can match a Buyer who is interested in that type of Properety. This will hopefully allow you a way out if necessary. I HIGHLY suggest you call the DG.com tele# and discuss with the coaches for definate info.

http://BruceThomas.bookmentioned.com

NDNC (Non-Disclosure, Non-Circumvent) Agreement between you and the person which whom you wish to disclose the property to. Which is basically Birddogging.

POF can be from your buyer, partner, transactional lender, etc. Which only comes to play if You are submitting on listed properties. If you BD you're just the messenger (so to speak).

Easier to assign a FSBO. Most REO's will have to be double closed.

Plus with FSBO you'll separate yourself from any other in your area. Because you become valuable to your buyers. You have properties coming to you that noone else knows about.

Addressing the: 'Sellers Not allowing you to lock up'? Re-wind and go over in your mind what your approach and verbage used with seller was. Put yourself in their shoes, how are you hearing yourself come across?

If the seller is just "thinking about selling", "would like to sell" or "just seeing what they can get" they'll be less likely to negotiate. Focus on the motivated sellers. They will practically be willing and open to anything as long as it gets the property gone. Making it very easy to create a win-win. But always leave your Unmotivated sellers on a good note, because Unmotivated today may become Motivated tomorrow.

Just a thought because I LOVE FSBO's.....
When I get property lead, they'll say "I saw your (ad, sign, etc) and I have a property I need to sell." I confirm they are the owner/person on title and then I'll say "Well tell me a little about your situation so that I can determine how I may best be able to help you" (They will usually unload everything down to what was for dinner last night). I take notes, I always get their asking price and determine their reason, the need and motivation for selling the first time they call me. So I know what I'm working with. Plus all the criteria of the property (address, bd/bth, condition, etc.) Alot of times after I go through my questions I'll ask same question worded differently. "If you were going to stay in the propery and money was not a concern, what repairs or changes would you make to the property?"

I run a prelim on property. If we're looking good or based on the communications I feel as though I can create a deal then on the follow-up I schedule a time to view the property. I do most all negotiations on the phone. Almost to the point of pulling the trigger but not giving an offer price yet. I'll do a walk-thru of the property as if I am buying it. If you go with the mindset this it's going to be yours, seems you will take a closer look, notice more and be closer to an accurate repair cost. Whether or not it's a property I'm going to wholesale.

If I am going to wholesale, once we have negotiated and came to an agreement I will go through the PA with them pointing out key contingencies (assignment clause, inspections, terminations, etc.). Then I allow them time to read to themselves and I ask permission to take a couple of pictures for my contractor and/or partner to view. So I go through the property taking pictures. When I sit back down with them and ready to sign I set a closing date and tell them that I may or may not be the buyer to close but we are agreeing upon the closing date to be on or before: Month, day, 2011. That way, they are fully informed and I ask "what would be the appropriate amount of notice do they need if I wish to have my contractor and/or partners meet me here at the property"? (therefore planting the seed for when my buyer wants to view).

Keep in mind, I already have a buyers list. I already know what my buyer's criteria is. Before even stepping foot on the property. The stepping foot part is for confirmation and face to face with seller. Then just....initial, sign and print here! lol When I sign I know where the property is going. With a 1,2 & 3 backups plus you have a well protected contract.

An amazing deal is ONLY an amazing deal once CLOSED!

Carol Stinson has a great PA on her website: www.realwholesaling.com I had my attorney review and we made a few modifications to be state, city and county specific as well as a couple of other additions. It's the contract I use for FSBO. It's clearly written, easily understood and covers you thoroughly.

Best wishes,
Jen

POF? BD? PA? what are these?

sorry.

POF = Proof of Funds
BD = Birddogging
PA = Purchase Agreement

I looked under "Forms & Docs" and didn't see the paperwork you was speaking of. Where could i find those documents? Thanks!

that was a great walk-through of a deal.

Where would you say you get most of your sellers from? Bandit signs, business cards, etc.?

Thanks again for the info.

tblackmore - I sent a pm.

Mark - Definitely bandit signs are my largest lead generation (yellow with handwritten black permanent marker).

Second is a local bulletin board (kind of like an auto trader magazine) slightly thinner in size. It comes out every Thursday. They are a $1.50 and at every convenience store. It has everything. A-Z listings from Automobiles to Local Yard Sales. It cost per business ad but worth it. I run on average 4 per wk but anywhere from 2 - 8 ads per week depending on what I need to bring up. Sections: Rental and Real Estate for both buyers and sellers.

God bless,
Jen

tblackmore,

here's a great link of acronyms and definitions...

http://www.deangraziosi.com/node/3208

On the top left of this page you can enter a word in the 'search' box, press enter, and you will find there are many threads covering different strategies to lock up properties.

Wishing you success,

Valerie

doesn't have a motivated seller. A MOTIVATED SELLER WILL DO WHATEVER THEY CAN TO GET RID OF HIS/HER HOUSE. so no piece of paper is gonna work if the seller isn't motivated. Banks generally don't allow you to assign REO'S ETC.... but some will..... but if its a fsbo (for sale by owner) then they are either motivated or there not.. they just want to get rid of the house...

so tblackmore is this close to what your trying to say ??????????

happy investing
WALT

Let me try to clear it up a little. I'm talking about not being allowed to put and/or assigns or an assignment clause in the contract! There are certain entities(for example: Banks) out there that won't allow you to do that. Those are the ones i'm talking about in this scenario. What strategies, documents, contracts, etc. could i do or use to still put the End Buyer and that entity together so the End Buyer can get the property from that entity, yet i'm still tied in somehow and can get paid out of the deal of putting the two together? I'm not tied in if i don't lock-up the contract. So in THIS situation, how can i still tie myself into that deal between the End Buyer and the entity?

tblackmore,

Jen gave you the best advice up there on post #4...

wishing you success,

Valerie

k...then I was on a tangit for nothing. HaHaHa!

Cleanest, simplist methods:

birddog agreement with you and your buyer. He in turn is the one to be on contract to close with the bank.

OR

You take it down and do a double close with end buyer. A to B + B to C transaction

several other ways it can be done also. but your asking for time...so I want tell you how to build a watch. hahaha!

Have a terrific day!

Great answers, Jen.

I'd never heard of a NDNC Agreement before, but its something I'll explore from now on.

Tblackmore- I think your options are many, especially if you have basic strategies for any issues that may come up.
I personally have never heard where a seller refuses the and/or/assigns clause- its pretty standard nowadays.
If that does happen, then you shift gears to a BD strategy or some other way to protect your interests. Try & keep everything as close to the vest as possible, since you hold all the cards & the other players have to respond to your plays.

If a seller doesn't want to accept the clause or the reasonable terms you set forth, then you should be able to "take your buyer & go home"! He should be flexible if he's motivated enough. Also, They should know that if you can't come to an agreement, then they're right back to square one...& no one benefits!
You're not trying to take advantage of their dilemma, but this is business- you're not just in it out of the goodness of your heart, either.

Btw- I try to stick to free & clear homes, where we don't need to deal w/ banks or many other outside factors. At most a realtor now & then, but thats about it!
If the seller gets skittish, introduce them to your attorney who can reassure them that the deal is legit & their interests are protected. Your attorney should also be able to issue paperwork thats designed to protect your interests w/ both the buyer and/or seller. Also, I ALWAYS have my attorney get in touch w/ theirs- it engenders trust.
Finally, there's a glut of deals out there & if you get stuck, then move on...there's another one waiting. Just check back w/ them in a coupla months- as attitudes can change very quickly .

Good luck.

Z

Thank you very much for your comments and help! I will try to find those Bird-Dog and Non-Disclosure, Non-Circumvent agreements.