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Selling an offer?

M

miral

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Sep 10, 2010
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I found these forums after reading Don`s book. Does anyone have any advice on selling an offer? I put an offer on a triplex in Hintonburg in Ottawa on a solid property below market value. It is a private sale with the elderly parents of a co-worker. As of now I`m not sure of getting financing and time is running out to find an alternative. Because of the deal I am getting I was thinking of selling the offer to a real estate investor. I`ve heard it mentioned in books before but don`t really know the legalities etc...
Any help would be greatly appreciated.
 
Do you have an investor in mind to purchase it?
Does your offer have a clause allowing you to assign the offer?
If not is your offer in a company name with no past activity recently registered that someone might be willing to purchase?
Does the clause remove you of all liability?
If the person you assign the offer to defaults are you in a position to close?
The key in situations like this are to under price to any investor your offering it to - so if your purchasing it for $50K less than someone wants try offering an assignment for $20K not $50K to elicit a fast response
 
QUOTE (miral @ Sep 13 2010, 09:45 AM) .. Because of the deal I am getting I was thinking of selling the offer to a real estate investor. ..
Any help would be greatly appreciated.
it is called an assignment.

VERY HIGH RISK .. as you as the re-seller are still liable to the seller if it doesn`t sell !

IT IS FOR PRO`S ONLY .. or those that don;t know what they`re doing.

if you cannot close in cash or with a mortgage then do not do an assignment.

I have been on the (ultimate) seller side a few times .. and one was settled out of court .. as the ultimate buyer renegged on its commitment to the buyer and the deal collapsed !
 
Thanks for the advice. I don`t want to be held liable if the deal didn`t close for whatever reason. Even though the seller is someone I know who would probably let me out of the deal, I still don`t want to be in that position.

Going to look into possibly finding a partner.
Thanks again!

QUOTE (ThomasBeyer @ Sep 13 2010, 11:27 AM) it is called an assignment.

VERY HIGH RISK .. as you as the re-seller are still liable to the seller if it doesn`t sell !

IT IS FOR PRO`S ONLY .. or those that don;t know what they`re doing.

if you cannot close in cash or with a mortgage then do not do an assignment.

I have been on the (ultimate) seller side a few times .. and one was settled out of court .. as the ultimate buyer renegged on its commitment to the buyer and the deal collapsed !
 
I`ve had positive, easy experience using an assignment of contract. We created a separate contract agreement assigning the original contract to the ultimate buyer AND created an amendment of the original contract changing the name of the buyer to my buyer instead of myself. Both of those documents were signed by all three parties.

I haven`t experienced it myself, but I`ve been told that some banks will balk at financing a deal where the buyer on the contract is listed as "so-and-so AND/OR Assigns" which is how purchase contracts intended to be flipped/assigned are often written up. However, they generally have no problem with a contract accompanied by a formal amendment amending the name of the buyer to someone else. I suspect that`s because it`s "cleaner" from their point of view as they still have a single known party as the buyer.
 
If I can`t find a partner and if someone is interested in doing an assignment I guess I`ll check with my lawyer to make sure my bases are covered. If not I`ll just let the offer expire.
Thanks again everyone for the insight!

QUOTE (JimWhitelaw @ Sep 14 2010, 11:54 PM) I`ve had positive, easy experience using an assignment of contract. We created a separate contract agreement assigning the original contract to the ultimate buyer AND created an amendment of the original contract changing the name of the buyer to my buyer instead of myself. Both of those documents were signed by all three parties.

I haven`t experienced it myself, but I`ve been told that some banks will balk at financing a deal where the buyer on the contract is listed as "so-and-so AND/OR Assigns" which is how purchase contracts intended to be flipped/assigned are often written up. However, they generally have no problem with a contract accompanied by a formal amendment amending the name of the buyer to someone else. I suspect that`s because it`s "cleaner" from their point of view as they still have a single known party as the buyer.
 
Checking with seller and might have an interested buyer. Gonna give the seller a cut for all the extra headaches.

QUOTE (ThomasBeyer @ Sep 15 2010, 10:51 AM) It is easiest if the seller is kept in the loop and agrees to it.
 
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