The first 2 properties our offers were accepted on seem rather ordinary since now we have sourced higher cashflow properies for cheaper purchase prices. Our dilemma is:do we pull out of purchases to purchase more properties(2for price of each one)for higher rental returns.
How do we rescind the offers and maintain our INTEGRITY?????
Brett & Tiffany
Hi Tiff,
What are the deals? Have you already exchanged?
I am sure there might be some people interested in your deals. You might be able to transfer the contracts to someone else that would be interested in them.
A lot of people don’t have the time to look. You already have one or two that would be good for them.
Let us know how the figures stack up.Cheers,
APIM
*************
Australian Property SoftwareAPIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
*************
Tiffany and Brett,
Do you have any special conditions in your contracts that are ‘get out’ clauses you could exercise ?
For instance, building inspection, subject to finance etc etc..
I have been in several situations where I have had to use the services of a solicitor to get out of a contract and on each occasion I have successfully rescinded the contracts (3 real estate deals , 1 new car deal when I was 18 and VERY green [
]From memory I think the standard wording in real estate contracts mentions you stand to lose $100 or .2% of the purchase price (whichever is more) plus your costs of course.
If the vendor(s) have a good chance of being able to sell the property to someone else, then I think their focus would be on finding another purchaser rather than chasing you through legal channels, especially if the sums of monies exchanged were low thus far.
As for your ‘INTEGRITY’ issue, are there reasons why you feel you cannot rescind the contract and still maintain your integrity ?
Having been in similar situations before I’d have to question is it truly integrity on the line here… or is it that you feel bad about wanting to drop these transactions for juicier deals ? in the end, if no one gets hurt, then I think viewing this as a learning experience and moving on is a good strategy.
Hi Tiff,What are the deals? Have you already exchanged?
I am sure there might be some people interested in your deals. You might be able to transfer the contracts to someone else that would be interested in them.
A lot of people don’t have the time to look. You already have one or two that would be good for them.
Let us know how the figures stack up.Cheers,
APIM
*************
Australian Property SoftwareAPIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
*************
The 1st deal was the sweetest as it was one we sourced from the spotter’s fee,we negotiated the purchase $ for hrs($140K asking,$120K agreed)and it was the only LOCAL deal that even remotely looked like being +ve cashflow(rentt$155p/w)after days of research in the local ‘bull’ market.That was our’ICE BREAKER’deal.Determined to better it we focused our attention further south to Kempsey where a new gaolwill be soon opening and had been under value for sometime.That’s where we found a pearler that accepted our offer of $105K and would rent immediately(due to a strong database of renters in wait)for $140p/w.
By this stage we are feeling pretty pleased with ourselves so we decided to look inland further aand pulled the lid clean off a can of baked deals at bargain prices.So we’ve been going silly with offers(nothing over$75K)on properties that have a qeue of faamilies lining up to rent for $145 to $155 a week!10% growth in the last 3 months and a regional centre.So far we have 6 of the offers accapted and are heading out there for the weekend to do business.
Nothing has been signed with the 1st two deals,though after all the groundwork we did 1 on1 with the vendor(and still satasfying things with a handshake here in the bush)it feels awkward to flag the deal to pursue better ones even though there is a number of exits.Feedback welcome.
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