I have searched on this site, and understand "assignments", have the contract, get the proof of funds stuff, but I'm still missing a few details, specifically when it comes to working with an agent. If I'm asking a previous forum topic, feel free to send it to me and my apologies in advance for the repeat.
*I have an agent, and she is open to assignments and wholesaling and that's great!
*She has not done assignments before but is open to it as she is an investor herself who has just worked with cash buyers and/or buyers using conventional financing for investment properties
SOOOOO...MY QUESTION - Please CORRECT my steps or make any suggestions ---I'm looking to fill in the blanks on the details:
*Find property one or more of my cash buyers would be interested in through agent (on of the many she would be sending me each week that we would narrow down to offer on for multiple offers each week)
*Offer made through agent using "and/or assigns" language
*Offer accepted by seller through seller's agent
*If it is accepted, then it means my contract said and/or assigns and everyone was cool with that seller and seller's agent yes? Any trickiness here on seller's agent side about and/or assigns? Will my agent need to "smooth this part over?"
*I have signed off on offer, so, I'm sure I have to provide proof of funds. Maybe reach out to Coastal Funding - popular source on another thread here on the site (search for it on Dean's site if interested. Trying to stick to my steps here! Thanks!
*Earnest Money comes along with proof of funds usually, yes? I know there are other threads here on earnest money and how to get around it so please search this site ----not trying to get into this as much as get my steps right!
*Close date - I'm assuming agent gets "close date" to me.
*At this point, I don't have a locked in buyer, because until now, I HAVEN'T locked up the property yet, yes?
*Find Buyer ---So the second I receive "my offer has been accepted" ---I am email blasting my buyers list and/or calling up the definite ones who "have cash now" to get one on the hook within ...just ASAP, or do I have a time window?
*What else does agent require of me here? And how soon?
*Buyer signs contract between me, wholesaler, and buyer for assignment fee of $10K. This fee could be collected now or at closing depending on what is negotiated.
*Buyer must be cool with specs WITHOUT having to walk-thru the property, yes?
*How does that work? Don't they want to see the inside?
Or are they OK with it if you give them all the repair specs, costs, ARV, etc... I would think they want to see inside? But maybe I'm wrong? If they can't see the inside, then what is my angle in selling this or getting around it. Any experiences out there?
*From my buyer - I must get proof of funds, bank statements, etc...within 72 hours of offer. Anything else from buyer?
*Offer contingent upon walk-thru (to save time as we would be putting in multiple offers every week, and just don't have time to walk through all of them unless accepted...this is how I understand Matt has done it), yes?
*Closing would be contingent upon inspection. Should I add appraisal? Any other contingencies?
*Agent contingencies in contract vs. FSBO contract contingencies: Basically, I have my FSBO assignment contract in place with my own contingencies/easy exits in case my buyer falls through or I can't find a buyer. I get this and it is clear to me (lots of DG site threads on this..not trying to focus on this here) What is not clear, is when working with an agent, I am not sure, but I would think it would be more difficult to include some of these "easy exits if buyer falls through" if you were even able to include them at all, correct? I mean, you're pretty much "on the hook" for the house if you put that offer in through the agent, right? (This is really why I have been holding off on using my agent regularly until I am SOOO solid on a couple of my buyers so that I'm not in a bind...to the point of even having done a couple FSBO deals with them where I trust their interest level, seriousness, and funds before I bring my agent in the loop on finding properties for them). But I also DO want to "leap and take action" with an agent, if I can go ahead and move forward knowing "find a deal, and the money will follow!"...but just need a few things ironed out above to be sure I can DELIVER when it comes to an agent.
BUYER'S PROOF OF FUNDS:
*Should I be worried if my proof of funds from buyer comes from Coastal Funding? haha...just something I thought of...
IF I HAVE TO PICK JUST ONE QUESTION ABOVE ---THE OVERALL STEPS ARE MY MAIN QUESTION! WHAT AM I MISSING?
(BTW, I am definitely not yelling at you, my dear DG family, I just want to be sure to note the above as we don't have "bold" on here or "highlighting")
Thanks for any input, experiences, or even tidbits of info on any one of the questions above. I know I have unloaded and I appreciate your insights and contributions in advance, no matter how small or big they are!
Thank you all so much for all that you do and all that you share!