Assigning The Contract
I am having trouble trying figuring out my first wholesale deal.
I am about to make an offer on a house and would like to assign the contract. How does the potential rehabber/buyer inspect the house before buying? Do you let them meet the seller?
Also can anyone point me in the direction for a good wholesaling contract?
thanks-Gary
I am a little concerned that you do not know enough about this process and you may be jumping into the frying pan!
You first need to know your state laws on this issue as your state may not allow this type of transaction without taking full ownership of the subject property I would suggest contacting a real estate attorney on this subject matter.
As for the potential rehabber/buyer inspection process is determined by the investor you are dealing with and is suggestive to consult with your potential investor.
No I would not suggest having the seller meet with your investor.
I would highly suggest before jumping into this learn more about this side of investing.
You statement suggest you do not have an investor(s) lined up to purchase! How do you plan to flip the property?
Wholesale contract? You simply make out a real estate purchase contract, there is really no wholesale real estate purchase contract!
How do you plan to assign this purchase?
What contract clauses do you plan to use?
Knowledge is most important in this form of investing!
[addsig]
For the most part you need to indicate that the buyer is "your name and/or assigns".
The possible person you assign it two can visit with you as your partner. The seller does not need to know who they are.
Alternatively you can get an option to purchase and then sell the option.
As was noted, more knowledge would be good. Having partners lined up helps so that you can make better offers (offers that are structured in a way that the partners want them rather then they contain terms that make no sense to the partner).
If the deal is a great one then a smart investor will notice and be happy. If the deal is marginal then the specifics become much more critical.
John
[addsig]
You guys have been great in answering all our newbie silly questions, so another should be ok. If I have a buyer's broker and I assign a contract to a cash investor, how does my buyer broker gets paid. Is the commission split between the listing broker and my buyers only broker. Please clarify, thank you
[addsig]
I am a little concerned that you do not know enough about this process...
Although, he's really trying to learn about the process, and the answer will be as obvious to him as it is to others, after he receives it.