Recently someone sent to me an email that seemed to indicate they wanted to wholesale a property and hoped we would be their excited buyer for their good deal. But they did not have the property under contract….I call that a “boogeyman” deal!!
What do I mean by “boogeyman”?
What this wholesaler has left undone….they don’t have a contract with the seller. I call that a “boogeyman” deal.
Either the seller is not willing to agree to the wholesaler’s price/terms, the seller has never really spoken to the wholesaler, the wholesaler is unsure how to generate and get a contract signed, etc….or something. Whatever the reason, the contract is not done.
TIP: In order to drum up interested investors to buy your great wholesale deal, it is always best to first have a contract. For 3 reasons:
1) so investor buyers take you serious and know they will not be wasting time with you and your “boogeyman” seller.
2) to protect your own interests from unscrupulous investors or other intangables. Some investors are downright crooks, but many are just playing the game with aces up their sleeves. It is very competitive market with a small pool of opportunities, so everybody is looking for angle to beat others to the deal. And a contract will protect you from “some” of that, not “all” of it….but it is highly a smart way to go.
3) and it is a tangible contract, of agreed price and terms, that you are really selling. The property info is important, but your not really selling the property, you are selling the contract.
If you don’t have a contract, then you are trying to sell a “boogeyman” deal……and will never find a interested buyer doing that. But you may lead some buyers to your deal who get it under contract without you. Either way, you did not accomplish your intended purpose.
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