Must close, PLEASE HELP

[rgchamb]

Here's an update on the deal. It looks like I have a buyer, however I renegotiated the price with the guy that's wholesaling it to me. So how would that work... Would I need to redo my contracts with the guy that's wholesaling it to me FIRST, or can I get my buyer under contract first for less than my contract with my wholesaler?

Thanks!

RENEGOTIATE WITH THE GUY THAT'S WHOLESALING TO YOU 1ST! OTHERWISE YOU WILL BE OBLIGATED TO PERFORM BOTH CONTRACTS, WHICH MEANS IT WILL COST YOU $!

[ballgum]

Thanks for the reply! I don't quite follow what you mean though... Can you please explain a little further?

Here's how it happened. It's coming down to the wire, so the wholesaler I'm going through agreed to drop the price to me. I dropped my price to my buyers. I found an interested buyer. If I get my buyer under contract for 270k for example, but my original wholesale contract is for 300k how would it work?? The other thing is, if I get the buyer under contract we will have to do extensions to the contracts so they will need to be redone. Couldn't I at that time, renegotiate my price on paper with the wholesaler I'm going through?

When you say, I will have to pay for both contract ends, I don't quite follow...

Thanks!

[rgchamb]

Thanks for the reply! I don't quite follow what you mean though... Can you please explain a little further?

Here's how it happened. It's coming down to the wire, so the wholesaler I'm going through agreed to drop the price to me. I dropped my price to my buyers. I found an interested buyer. If I get my buyer under contract for 270k for example, but my original wholesale contract is for 300k how would it work?? The other thing is, if I get the buyer under contract we will have to do extensions to the contracts so they will need to be redone. Couldn't I at that time, renegotiate my price on paper with the wholesaler I'm going through?

When you say, I will have to pay for both contract ends, I don't quite follow...

Thanks!

This is how I understand it:

You have a contract to buy the house from a wholesaler (Seller) for $300K.
You go & wholesale it to someone else (buyer) for $270K.  So the buyer's money is what will pay the seller.

Seller is expecting  $300K (according to the contract)
Buyer expecting to pay  $270K (according to your contract)

Therefore if your buyer gives you $270K, you have to come up with $30K to give to the Seller.  Apparently, that is what your contract say anyway.

If this is correct, then the Seller's price has to be below $270 for you to make money!

If you are doing everything based on a verbal price reduction from a Seller, my advice is ALWAYS GET IT IN WRITING & don't do anything until it is in writing.  (Note:  this is not to be construed as legal advice.  Contact a legal professional for any contract interpretation questions/issues).

Hope that helps.

[ballgum]

The date got extended until Monday!! Wow, just when I thought I was going to lose the deal all together, it got extended. Now all I need to do is find a buyer in a few days at the reduced price and then we can extend a little longer (enough to close). This is starting to get a little complex with all the extensions and assignment of contracts thrown into the mix. On top of all this, I just got contacted by a buyer who I think wants to wholesale to another investor.

That would make 3 assignment of contracts in the deal. Has anyone done this before?

[rgchamb]

The date got extended until Monday!! Wow, just when I thought I was going to lose the deal all together, it got extended. Now all I need to do is find a buyer in a few days at the reduced price and then we can extend a little longer (enough to close). This is starting to get a little complex with all the extensions and assignment of contracts thrown into the mix. On top of all this, I just got contacted by a buyer who I think wants to wholesale to another investor.

That would make 3 assignment of contracts in the deal. Has anyone done this before?

I have not done 3 assignments in one deal...but that's the beauty of Real Estate investing.  You learn by doing, and you can share your experiences on this forum when others have similar situations.

[timandlisa1208]

is it easy to wholesale a contract from a wholsaler? do you have to do a double  closing? and how does that work exactly at closing, are both wholesalers listed on the settlement sheet as an assignment fee?

[rgchamb]

is it easy to wholesale a contract from a wholsaler? do you have to do a double  closing? and how does that work exactly at closing, are both wholesalers listed on the settlement sheet as an assignment fee?

In my dealing with a couple of Title Companies, they will do whatever the contract says.  Usually if I run across a situation like this, I'll just email my Title Company and get their input - since they're the ones that will sort it all out.

[ballgum]

Ok, so I want to ask you guys opinions on what I should do here. This deal started to turn out so screwed up. To make a LONG story short, me and the wholesaler I was going through for the deal got into a problem of where he thought I was trying to screw him on the deal. He was sending me accusations in email and threatening to sue and contact my lawyer, etc...etc.... AFTER he found out MY side of the story, he backed off and apologized. Now he's wanting me to bring my buyers back into the deal(I'm guessing he doesn't have any buyers otherwise he would have closed himself). Should I continue with the deal and make some money if it closes, OR just walk away??

I was getting really stressed out when he was accusing me and threatening to sue. This is my first deal and he just jumped off the handle without hearing what I had to say. It seems the complications are over, but I just want to see what you guys would do in my situation.

Thanks!

[NovaWholesaler]

1st of all, if you we're trying to wholesale a deal that I had assigned to you and you weren't forthright with me, I would be extremely pissed.

Find your own deals and assign them. I place clauses in my assignment contracts that protects me from anyone else assigning it again. On top of that, you are so green and have probably complicated the process for the other wholesaler.

Do upon others as you wish it done unto you.

Find your own deals or close on the deal you signed and do the rehab yourself.

Just my .2 cents.

Happy investing.

[rgchamb]

My opinion:

Sure, bring the buyers back.  But make sure that you have an "out-clause" in your contract in case something is screwed up.  But there is no problem in your house or contract being flipped more than once, as long as the people actually close, and the title company has no problem with it.