Locking up my reo Buyer..

[propace102]

After i have the property under contract with my reo buyers criteria,

1.) I now collect the deposit or before? and what paper work in exchange?

these guys keep bailing at the last minute...


2.) what contract do i have him sighn as a reciept? the purchase contract or assignment, i think we are going to use a land trust to close..

i would love to get these guys through the house before but ,either they just go around me or they take too long to do the inspection and the deals gone,thats why i need to show the property and get the deposit and then they can use the 7-14 inspection at their own risk of losing the deposit?

Thanks

[aaronwilliams123456]

When you are showing the new buyer the property you can always tell the Realtor you need to get your appraiser, inspectors, other investors  or whatever to let your new buyer see the house. If I'm flipping a REO house i try to focus on the vacant ones so i can just give my guy  lock box code for the flip. Once they want to buy it you collect a non refundable deposit and give them ten days to close once your attorney says the title is clear. They sign a purchase and sale agreement from you to them. You will do a double close. And you make your new buyer close with your attorney or you won't do the deal with them. Even if they have an attorney a lot of times you can hook him up with your guy. Good luck.

[ericmedem]

My rule of thumb is to ALWAYS get a deposit at bare minimum of the amount that you stand to lose if they back out.

The bigger the better as always.  You can tie most buyers down pretty good by telling giving them an ego boost prior to showing them anything and letting them know "How great they are for always following through"...All this prior to showing them anything.

In essence you set up you own new identity for them to remain consistent with.  That little item works like a champ in so many situations its scary.

Eric