- Joined
- Aug 30, 2007
- Messages
- 51
Another email for Barry, Doh! I missed the Legal Docs workshop on Dec 5th! That`ll teach me for not checking MyREINSpace more frequently! Although we did have a blizzard here in Red Deer on the 4th and 5th which likely would`ve precluded me from attending anyway (i.e. terrible road conditions).
I want to take the leap in getting into wholesaling ugly houses to start off my Quickturn career but something that I heard Ron Legrand say at his October bootcamp in Edmonton seemed to go against some of the REIN guidelines about placing written offers and it has left me very conflicted and slightly stressed.
I recall Ron saying at the bootcamp..."Don`t let anyone tell you that you HAVE to buy a house even if you have submitted an offer. The worst thing that you should allow to happen if you can`t find a wholesale buyer by the time you are ready to close the deal, is that you walk away from the deal, lose your good will deposit and have a Seller who is very unhappy with you...."
Yet, my interpretation of what I`ve heard during some of the "Trench" talk at REIN meetings in the last few years was that a potential Buyer (that would be me in this scenario) should NEVER put in an offer without conditions because once any OTP (Offer to Purchase) Agreement goes unconditional, the potential Buyer is now on the hook to complete that deal.
Obviously I`m doing a little `Devil`s Advocate` thinking here. I`m imagining a worst-case scenario where I can`t find a Buyer on a house that I`m attempting to buy and then sell wholesale and I have an offer that is approaching closing. My original offer in this scenario, would`ve either had the conditions already removed or were never there in the first place!
Is Ron correct in saying no one can make me buy that house if I can`t close the deal on an offer I submitted?
The answer to this question will really determine if I`m going to get into wholesaling now or whether I`ll need to delay that option for a few months or even years. I just don`t have the type of financial picture that will allow me to buy a house without either a JV partner, or owner financing. And I`m not wanting to put myself into a situation where I`m forced to sign a "big cheque".
Another set of questions that arise from this scenario...:
If I can`t close on a deal and I do not have the financial means to buy the house I put an offer on, what exactly will happen to me?
...the property?
...the Seller?
I assume that the Seller could sue me if he chose to?
If so, I`d imagine his chances are good that he`d win the case if he wanted to go through the court process, yes?
I screwed up a flip a couple years back that has really hurt my cashflow situation and has made me very gun shy in proceeding with submitting any further offers. One of the main reasons for having this deal go sour was that I couldn`t sell the house in a timely manner.
I need to be able to sleep nights! And leaving me exposed to civil suits, is not somewhere I want to find myself just because I couldn`t find a Buyer and close on a deal!
I suppose I could put in a condition in the offer that says I`ll buy the house (at wholesale) IF I can find a partner. This could buy me some time and possibly better protect me but then during the bootcamp, it was made clear that offers on ugly house wholesaling deals should NEVER have any conditions on them, or I might as well look at rejected offer after rejected offer!
So I am terribly conflicted and am really hoping that Barry or any member out there who has some experience in putting in offers on ugly houses, could shed some light on how to handle this dilemma.
Perhaps if I built a `Potential Buyer`s list ahead of submitting offers that I`d greatly reduce my chances of ever finding myself in this dilemma?! Still I think it`s a good idea to know what my options are if ever I found myself in this situation because even with a Buyer`s list, there is that chance that I may not be able to find a Buyer to buy from me before I close!
Thank you all in advance for any constructive input you can provide on this matter!
I want to take the leap in getting into wholesaling ugly houses to start off my Quickturn career but something that I heard Ron Legrand say at his October bootcamp in Edmonton seemed to go against some of the REIN guidelines about placing written offers and it has left me very conflicted and slightly stressed.
I recall Ron saying at the bootcamp..."Don`t let anyone tell you that you HAVE to buy a house even if you have submitted an offer. The worst thing that you should allow to happen if you can`t find a wholesale buyer by the time you are ready to close the deal, is that you walk away from the deal, lose your good will deposit and have a Seller who is very unhappy with you...."
Yet, my interpretation of what I`ve heard during some of the "Trench" talk at REIN meetings in the last few years was that a potential Buyer (that would be me in this scenario) should NEVER put in an offer without conditions because once any OTP (Offer to Purchase) Agreement goes unconditional, the potential Buyer is now on the hook to complete that deal.
Obviously I`m doing a little `Devil`s Advocate` thinking here. I`m imagining a worst-case scenario where I can`t find a Buyer on a house that I`m attempting to buy and then sell wholesale and I have an offer that is approaching closing. My original offer in this scenario, would`ve either had the conditions already removed or were never there in the first place!
Is Ron correct in saying no one can make me buy that house if I can`t close the deal on an offer I submitted?
The answer to this question will really determine if I`m going to get into wholesaling now or whether I`ll need to delay that option for a few months or even years. I just don`t have the type of financial picture that will allow me to buy a house without either a JV partner, or owner financing. And I`m not wanting to put myself into a situation where I`m forced to sign a "big cheque".
Another set of questions that arise from this scenario...:
If I can`t close on a deal and I do not have the financial means to buy the house I put an offer on, what exactly will happen to me?
...the property?
...the Seller?
I assume that the Seller could sue me if he chose to?
If so, I`d imagine his chances are good that he`d win the case if he wanted to go through the court process, yes?
I screwed up a flip a couple years back that has really hurt my cashflow situation and has made me very gun shy in proceeding with submitting any further offers. One of the main reasons for having this deal go sour was that I couldn`t sell the house in a timely manner.
I need to be able to sleep nights! And leaving me exposed to civil suits, is not somewhere I want to find myself just because I couldn`t find a Buyer and close on a deal!
I suppose I could put in a condition in the offer that says I`ll buy the house (at wholesale) IF I can find a partner. This could buy me some time and possibly better protect me but then during the bootcamp, it was made clear that offers on ugly house wholesaling deals should NEVER have any conditions on them, or I might as well look at rejected offer after rejected offer!
So I am terribly conflicted and am really hoping that Barry or any member out there who has some experience in putting in offers on ugly houses, could shed some light on how to handle this dilemma.
Perhaps if I built a `Potential Buyer`s list ahead of submitting offers that I`d greatly reduce my chances of ever finding myself in this dilemma?! Still I think it`s a good idea to know what my options are if ever I found myself in this situation because even with a Buyer`s list, there is that chance that I may not be able to find a Buyer to buy from me before I close!
Thank you all in advance for any constructive input you can provide on this matter!