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JerseyJeff

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They want to continue trying to move the property via other avenues while I am marketing it as a LP. If they find a buyer before I find a TB, I'm out.

 

Jeff

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I think he means that sellers want to keep their options open, so if they get an offer from another buyer before we can put a TB in the house, then they can take that offer. I would always prefer to have an exclusive options as well, but if it 's the difference between signing up a CA or not, then I'll give the sellers an out. Obviously for one reason or another their marketing isn't working or their numbers are wrong, so they can keep advertising, chances are, with our aggressive marketing, and creative financing, we'll be able to find someone faster. Plus it gives you even more incentive to fill the house sooner. I'm about to sign another CA with a seller, and the only sticking point is he wants an out if he finds someone first. If the seller does want a cancellation agreement, try to get a cancellation fee for your contract, something that would reflect your time and marketing costs.

 

Steve

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I seem to be finding a lot of sellers who are interested in LPing but none of them are willing to give me exclusivity.

 

Any ideas?

 

Jeff

 

Hi Jeff:

 

I have always found the same. I have no problem with that. But I always make it clear if any buyer comes to me they are all mine or nothing.

 

Craig

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Guest Guest

For me it gets to complicated if I am competing with the seller. I am there to help the seller with their problem. If the seller signs my agreement the property is mine. Period.

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If the seller does want a cancellation agreement, try to get a cancellation fee for your contract, something that would reflect your time and marketing costs.

I tried this and pretty much got laughed at. I told the owner, you called my ad so you're obviously having a problem selling your home...good luck though, and hung up.

This is the vibe I get from a lot of them when I start talking about cancellation fees.

 

Plus it gives you even more incentive to fill the house sooner.

The thousands of dollars I have waiting on the other side of the road called option money is more than enough incentive for me to close the deal ASAP.

 

If the property was nearby, I might consider an open-ended contract, but all the homes I am getting are 45 mins, 1 hr, 1 hr 15 mins away. I'll go broke just paying for gas.

 

Jeff

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If the seller does want a cancellation agreement, try to get a cancellation fee for your contract, something that would reflect your time and marketing costs.

I tried this and pretty much got laughed at. I told the owner, you called my ad so you're obviously having a problem selling your home...good luck though, and hung up.

This is the vibe I get from a lot of them when I start talking about cancellation fees.

 

Plus it gives you even more incentive to fill the house sooner.

The thousands of dollars I have waiting on the other side of the road called option money is more than enough incentive for me to close the deal ASAP.

 

If the property was nearby, I might consider an open-ended contract, but all the homes I am getting are 45 mins, 1 hr, 1 hr 15 mins away. I'll go broke just paying for gas.

 

Jeff

 

You and I both, maybe its a east cost thing. My thinking is I will not walk from this money if its good enough. If the deal is good enough I will close it. I mostly use the Net to advertise because I refuse to pay the newspaper ads fees where I live. I would go broke in no time.

 

Get a little under my belt then form the LLC. Steady growth is good growth.

 

Craig

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I may not have an option but to sign "open-ended" contracts with these sellers and roll the dice and hope to fill it before they do.

 

I mostly use the Net to advertise because I refuse to pay the newspaper ads fees where I live. I would go broke in no time.

Same here. Maybe when I have some profits to work with, I'll use paid advertising.

 

Jeff

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I tried this and pretty much got laughed at. I told the owner, you called my ad so you're obviously having a problem selling your home...good luck though, and hung up.

This is the vibe I get from a lot of them when I start talking about cancellation fees.

 

Jeff.. what methods do you use to advertise? I put up bandit signs a few days ago and not a single call yet? Mabey the number I use is too complicated for a bandit sign. It is definately noticeable though.

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You all know what happened to me when I gave the seller an out. NEVER AGAIN! And I don't care if it costs me deals. To me wanting a non-exclusive contract just means they aren't serious.

 

You could always pull the old realtor trick, tell them you'll let them out of the contract, but don't put that in the contract LOL! :wub:

 

Seriously though, it all boils down to leverage. Your leverage is that you have buyers and they want them. If they want your buyers, then they have to sign your contract. End of discussion.

 

I guarantee that the only time sellers bring this up is when you give them the impression that you will let them get away with it.

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Jtlab,

 

For finding sellers, I just pick up penny savers, local mags and cold call. The one time I had a contract with the seller, I used the free web site.

 

Maybe when I get some profits, I'll get some bandit signs.

 

What does your sign say?

 

Jeff

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Jtlab,

 

For finding sellers, I just pick up penny savers, local mags and cold call. The one time I had a contract with the seller, I used the free web site.

 

Maybe when I get some profits, I'll get some bandit signs.

 

What does your sign say?

 

Jeff

 

Well I would show you what it looks like but I dont have permission to upload. MC I think you need to modify the permissions on the directory for uploading files:)

 

Jeff it says

We Buy Houses

Above Market Price

XXX-XXX-XXXX

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Jeff, it's a judgement call. Preferably we can get the homeowner to understand that we are working for them, we are not in competition against them. Not always the case, I know. You may very well be dealing with sellers who have not yet hit the wall. That is, they haven't yet thrown their hands in the air after two months of trying to sell their home without success.

If you are willing to take on a deal that is nonexclusive, at the very least you should have some sort of cancellation clause in the Agreement. You need to be compensated for your time and marketing expense. If they can't agree to this, move on.

Well I would show you what it looks like but I dont have permission to upload. MC I think you need to modify the permissions on the directory for uploading files:)

 

Jeff it says

We Buy Houses

Above Market Price

XXX-XXX-XXXX

Jacin, aren't you able to attach the file to your post?

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