Getting A New Buyer...

Comments(8)

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  rjs935218th February, 2004

  Two words. Out clauses. We had this discussion before on this website and some investors have very strong opinions against this, but in your contract I feel you should have some out clauses which let you out of the contract. I believe you should be up front with the owner and let them know up front that there is a CHANCE that you can't get a buyer. In that case you'd have to give the house back. I know there will be alot of posts to follow that say don't do that. That however, is my $.02. I'm not claiming to be right or wrong, just take it for whatever it's worth.
  
  Ryan J. Schnabel

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  maxmad18th February, 2004

  I have been around this game for almost 20 years and have heard over and over from some successful people in this biz. Never, Ever, Ever go into a contract without a Weasel Clause (Your Get Out Clause). I never worry much about what those other investor say about the clause. I'm doing this deal, They aren't.
  
  Another idea that works well is to set up a buyer and then find a property for them to buy! Tim

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  InActive_Account18th February, 2004

  When doing a sub-to,I base my decision on the location of the house. Is it in a good school district,near shopping, and entertainment. Is the local market glutted with rentals that are vacant. Giving a house back will hurt your reputation in the investing community.

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  kharvel18th February, 2004

  Quote:
  On 2004-02-18 21:32, BOSSinDC wrote:
  How can I reduce this risk and what are the best ways to get a new seller?
  
  
  Not sure how it is much of a risk. You make the payments yourself and it is going towards the seller's mortgage. As a result, that mortgage is reduced and you are building equity in the house. So even if you find a buyer after a long while, you should get most of the money back in form of increased equity. Of course, this won't work if the housing market declines.

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  nebulousd19th February, 2004

  Here Boss,
  
  Read the link below about giving houses back. I don't want to get into this topic again but giving houses back is a bad thing. You should have never taken it in the first place if that's the case.
  
  http://www.thecreativeinvestor.com/ViewTopic21261-34-14.html

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  chriseaker19th February, 2004

  Weasel clauses are for investors who are unsure of themselves. You need to do your due diligence prior to buying the house, so when you do buy it, you know what you're getting into. Don't buy if you can't follow through.

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  BOSSinDC19th February, 2004

  Thanks to everyone who replied. I understand the issues revolving around out clauses and that is not something I really ever wanted to do anyway. I was just wondering what is the best way to move those houses?

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  samedwin20th February, 2004

  Finding Buyers is the easier part (vs finding sellers), right chris?
  Sam