All Topics / Creative Investing / Finding the buyer before the house

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  • Profile photo of karmakarma
    Member
    @karma
    Join Date: 2003
    Post Count: 4
    June 14, 2004 - 4:02 pm

    Hi everyone,

    I have wrapped a few houses and have felt the pain of paying the interest on the loans for quite a few months before I found my buyers.
    Therfore I am interested in finding buyers first and letting them find a house they like and then calling me.

    I would like some ideas from those doing this as to how to make this process work smoothly.

    For instance after prequalifying your buyer to go out and look for a house in a certain price range are you letting the buyer make the initial offer (probable pay too much) on the house and maybe pay a nominal deposit before calling you?

    What safeguards are there that your buyer doesn’t change their mind after you purchase the house ?
    Hurt money up front I guess.

    Any insight from those who have done deals like this would be much appreciated.

    Cheers

    Anthony [cap]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    June 14, 2004 - 10:33 pm

    Anthony

    We only deal with clients who have been pre-qualified and then go out and find their own property upto the maximum price we have given them.

    Doing this not only means that you will reduce your interest bill but also your wrappees are likely to stay in the property as they found the house in the first place.

    With regards to safeguards well other than the deposit if you have collected one then there is nothing to prevent them walking away. I guess it all boils down to how well you qualify them and ascertain whether you consider them to be genuine.

    We take introduced business from a small panel of Brokers and feel that we are able to trust them as they usually sit in front of the client.

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of karmakarma
    Member
    @karma
    Join Date: 2003
    Post Count: 4
    June 15, 2004 - 1:28 pm

    Thanks for your reply Richard,

    When your pre-qualified buyer finds a house they like do you take over from then on regarding making offers etc ? Also has your buyer already paid you a deposit before you go ahead and make an offer on the house?
    Cheers,

    Anthony

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    June 22, 2004 - 11:45 am

    Anthony

    Yes we take over all the negotiations and try and negotiate the price down. In some circumstances that is not possible but at least the wrappee is aware of the true cost of the property and the sale price is reflected in our letter of offer together with the repayments and any other terms.

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

Viewing 4 posts - 1 through 4 (of 4 total)

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