Below is an example of a simple email you can send to a real estate agent that should trigger them into writing your offer so it will protect you from potential loss while giving you the best possible chance to do a deal that makes you money.
Dear (Enter Agent Name Here),
Thank you for your work with me on: 413 Buckthorn Drive Lexington SC 29072.
I would like to offer $70,900.00 on this property under the name (ABC, LLC.). Further I will need the contact info for the title company so I can arrange to wire funds to them. I will give the seller or their “Title Company” a $1,000.00 deposit as soon as they accept my offer or put a check in escrow with my attorney. This offer is subject only to the following 15-day due diligence clause (or your equivalent):
Commencing upon receipt by Buyer’s Agent of a mutually executed Agreement of Sale, a Fifteen (15) day period shall begin (the “Due Diligence Period”) during which the Buyer shall have the right to carry out and perform all reviews and investigations deemed necessary by Buyers, including, without limitation, a physical review and inspection of the conditions of the buildings (if any) and the soil, environmental inspections, review of title, review of zoning, review of any permits and approvals for property deemed necessary by Buyer. In the event Buyer, in its sole discretion, is not satisfied with the review, evaluation or investigation during the Due Diligence Period, Buyer may terminate this Agreement by written notice to Agent for the Seller prior to the expiration of the Due Diligence Period, and at such time, shall receive back deposit(s) if any, and neither party shall have any further obligation hereunder. If such notice is not given, this Agreement shall continue in full force and effect in accordance with its remaining terms.
(Enter Agent Name Here), I would like this offer presented in writing to the seller! Further, I will want you to resubmit the offer every two weeks until the property is under contract. Should the property end up under contract with someone else, could you please ask if we can submit this offer as a back-up offer?
All the best,
(Your Name Here)
The email above is designed to help you get your agent to properly fill out an official “written” offer form. By using this as a template, you can quickly initiate a lot of offers. Please remember, it is critical that you get your agent to present your offer in writing, as verbal offers almost never result in a “done deal.” Agents have a fiduciary responsibility to submit your offer in writing if you request that they do so.
It does you no good to let real estate agents teach you how to buy at retail so they can make a bigger commission when your business revolves around closing deals that are profitable to you and/or your buyers if you are wholesaling.
Once your agent writes the offer, you should go over it with your agent to make certain that the contract says what you want said. Many states that approved Real Estate Purchase Contracts (REPC) have a built-in, often even state mandated, “due diligence clause” to protect you as the buyer. However, many agents check the box that says you don’t want this protection because the agent is looking for a quick deal.
Recently, many state contracts have been rewritten to force buyers to use a licensed inspector and continue through with the purchase if the seller is willing to make the changes indicated by the licensed inspector. You or your buyer will want to choose your own inspector, perhaps yourself or one of your contractors.
While you won’t want to mention to the agent that you are using the “Due Diligence Period” to find a buyer, it is obviously paramount that you be able get out of the contract and get back your deposit back if you can’t find a buyer.
This letter is written to help you make your deposits to the title company as opposed to the agent’s brokerage. The reasons for this are that:
The title company has no reason to keep your deposit if the deal falls through.
The title company is unlikely to cash your check unless/until the deal closes.
The deposit in most cases is not due until 3 days after your offer is accepted.
Writing a deposit check to the agent’s brokerage will please the agent. They will almost always deposit the check to their escrow account. Further, they will most certainly keep the money if they can. Expect no mercy if you miss a deadline or make a mistake.
Obviously, this email offer and accompanying explanation is designed to protect your resources and get you only deals that will make you money. Perhaps the most important thing of all to learn is that the listing agent and the buyer’s agent are both paid by the seller. Hence, they will take the sellers side every time. Good luck and may your next deal come quickly and be a big one.