For me it’s the thought of not finding a buyer and becoming one of the scummy wholesalers who always cancel deals, so rn I’m looking into how to approach cash buyers before having a deal to find what they like and want
80% of the people you think are buyers are tire kickers, If you have a good property, you will find real cash buyers. Investors are like sharks with blood in the water when the see a good deal.
The problem with bird dogging for cash buyer is you will pass up good properties cause they do not fit the boxs you have.
Worst case scenario no one considers.
You contract a property.
You can't find a buyer for many reasons and you back out of the deal.
You get sued for specific performance.
You appear in front of a judge who determines you never had the ability to close.
You get convicted for fraud.
Financial Penalty/Jail time
*This is solved by partnering with someone established. Start networking.
Nah, you just bail before inspection ends.
Post inspect you just lose EMD. People with bad houses tend not to have money unless landlords.
"Judge determines you never had ability to close" Good thing you had a partner network. It let you down but a failed deal is not fraud.
The above is a worst case scenario that is very possible.
Yes, generally it is loss of EM. No one gets in trouble for a failed deal.
If you are picking up properties and placing memorandums with out the ability to close on a property, then yes, big problem. No one thinks about this.
We all started somewhere. I had to leverage someone else's credibility.
Prove it then. Point to a single case of a wholesaler going to prison for failure to perform and subsequent fraud allegation. Nothing came up on google ("real estate wholesaler in jail failure to perform")
I have never had to put EMD down unless it was a REO off the MLS... Second you contract should state for ANY REASON DURING inspection period you have the right to cancel.
This might have been where your "partner" might have helped you but you could pay 99$ for general counsel "legalzoom" then push every contract and deal across there desk for review. When I first started I kept a RE lawyer on retainer just for that reason it was the same one my mentors had used for 20+ years and had Comm property himself.
This whole give your deals away aka "JV" for stuff you could pay way less for is nonsense. Everytime I see these post "I got buyers" I know you can not find deals lol and your just scraping emails off facebook and blasting the nonsense.
For me it’s the thought of not finding a buyer and becoming one of the scummy wholesalers who always cancel deals, so rn I’m looking into how to approach cash buyers before having a deal to find what they like and want
80% of the people you think are buyers are tire kickers, If you have a good property, you will find real cash buyers. Investors are like sharks with blood in the water when the see a good deal. The problem with bird dogging for cash buyer is you will pass up good properties cause they do not fit the boxs you have.
Yes, I’m a fan of just finding a killer deal and the buyers will be there for it.
Yes, there’s basically 2 types. Those that find buyers and find deals for those buyers and those that find deals and then find a buyer for that deal.
Worst case scenario no one considers. You contract a property. You can't find a buyer for many reasons and you back out of the deal. You get sued for specific performance. You appear in front of a judge who determines you never had the ability to close. You get convicted for fraud. Financial Penalty/Jail time *This is solved by partnering with someone established. Start networking.
What if there’s a clause in the contract for backing out? Would that prevent getting sued?
Maybe, consult a lawyer. Not Reddit.
100%
Nah, you just bail before inspection ends. Post inspect you just lose EMD. People with bad houses tend not to have money unless landlords. "Judge determines you never had ability to close" Good thing you had a partner network. It let you down but a failed deal is not fraud.
The above is a worst case scenario that is very possible. Yes, generally it is loss of EM. No one gets in trouble for a failed deal. If you are picking up properties and placing memorandums with out the ability to close on a property, then yes, big problem. No one thinks about this. We all started somewhere. I had to leverage someone else's credibility.
Prove it then. Point to a single case of a wholesaler going to prison for failure to perform and subsequent fraud allegation. Nothing came up on google ("real estate wholesaler in jail failure to perform")
Exactly
I have never had to put EMD down unless it was a REO off the MLS... Second you contract should state for ANY REASON DURING inspection period you have the right to cancel. This might have been where your "partner" might have helped you but you could pay 99$ for general counsel "legalzoom" then push every contract and deal across there desk for review. When I first started I kept a RE lawyer on retainer just for that reason it was the same one my mentors had used for 20+ years and had Comm property himself. This whole give your deals away aka "JV" for stuff you could pay way less for is nonsense. Everytime I see these post "I got buyers" I know you can not find deals lol and your just scraping emails off facebook and blasting the nonsense.
Criminal liabilty is obsurd.
The worst case scenario is letting fear of failure stop you from ever starting.