Real Estate Back Up Offers
Hi,
If the seller accepts an offer, can the realtor accept
back up offers?
Buyer and Seller are just waiting for closing, so can the realtor still show the house, and take back up offers?
Thank you
If they accepted your offer and a contract was made the house is off the market. So no
I still say no because as far as I am aware a "dry" closing means that all the paperwork was done but the funds were not all paid.
SInce it is not your fault that there was not a final close then, if the mortgage issues resolve, the funds are finalized and the property is yours.
A "Back up offer" is just that.... A backup in case the accepted offer falls through for some reason. Theoretically, a seller can accept several "Back up offers". They should get a priority and know what offer(s) are in front of them. A "Back up offer" should be accepted disclosing what it is the "Back up" to.
From "Real Estate Investing from a Tax Point of View" at www.instantinc.us
Protect Your Real Estate Assets
What interests successful real estate investors is not only making money, but protecting it. You can have many avenues of income from real estate investing, but if you are not careful about how you develop and protect them, you could lose them all. It is important to understand how to protect what you work so hard to get.
To protect what you have, let us tell you about problems you will face as a successful real estate investor. Then (do not worry) we will show you how to protect yourself against those problems.
Getting Sued
About 30 million hospitalizations occur each year in this country, yet there are more than 120 million court filings every year. That shows you have three times more likelihood of going to court than going into the hospital. Average Americans will be involved in four to six lawsuits during their lifetimes, and these events make up the most likely reasons:
* Driving. If you are in a bad car wreck and people get hurt and go to the emergency room or to intensive care for a couple of weeks, it can cost hundreds of thousands of dollars, if not millions, for medical care. Having to pay for that is probably one of your biggest risks.
• Do you have children? If they are under 18, you are responsible for everything they do. Maybe you are a good driver, but you cannot be with them all the time. They could get in a car wreck driving with others, and it will cost you. They could get in a fight, do something bad, and cause you problems. At the risk of sounding like a bad country song, if you are a livin’, lovin’, drivin’, workin’ person, you are always at risk of being sued.
• Your job. You could do something wrong at work (sexual discrimination, for example). Maybe you are guilty, maybe you are innocent. Keep in mind, however, that you could get sued at work.
Defenses for Asset Protection
What are some defenses or solutions to protect your assets? We will outline several here.
• Have subcontractors instead of employees. You can cut down on the risks and hassles of hiring and managing employees by only hiring subcontractors in your business.
• Hire licensed, bonded, and insured contractors to do repair work. If you do repair work yourself and install a faulty wire that burns down one of your houses and injures people, you could be sued. So make sure people doing your work are licensed, bonded, and insured.
• Stop making people angry. People who might sue you are generally angry because you did not treat them well. You did not return their phone calls or give them the services you promised. My advice is, do what it takes to make them happy. If your tenant is upset, spend an extra $50 and get the repairs done. Within reason, if you keep people from getting upset, they will not sue you.
• Simply stop owning things. The more you have, the more you own, the more likely you are to get sued. Research indicates that if you earn more than $100,000 a year, you have a one-in-four chance of being named in a lawsuit. If you earn $250,000 a year, you have a one-in-two chance of being named in a lawsuit.
• Get assets out of your name. That may sound silly, but most wealthy people do not put possessions in their own names. You may want to do the same if you are concerned about asset protection.
Segregating Assets - Forming corporations and trusts helps you segregate your assets, which means getting assets out of your own name. Most people have their bank accounts, houses, and cars in their own names, so do couples. However, if you get sued, everything you own (that is in your name) can be attached by a judge to satisfy the suit. Depending on the laws in your state, if you are married and get sued, everything you both own is at risk.
Anyone have experience with RJ Mintz ?
Some of the ideas on his website are intrigueing.
I might even buy his Privacy Plan book.