Philosophy Of Contracts For Wholesaling
Hey gang. I am newbie trying to find his way. My question for tonight concerns contracts with the seller for certain properties.
I get numerous calls off my ad that are "fringe properties". Not really good enough, ie. positive cash flow, or equity, or fixer increased value, to wholesale, but still with some potential to interest the rare investor or retail buyer.
So, should I attempt a purchase agreement or just get seller to sign option to buy?
Case in point. I have a seller with two duplexes at ~$133k each. Now these properties will cash flow a break even at best.
However, I have some investors interested. Should I make a deal for price with the seller, and assign the contract, or is it better to get the "option to buy" ?
The only difference I can detect is, with the option contract, the price/terms have not been negotiated, conceivably, so it leaves some freedom for any potential buyer to deal with seller.
In which case, should a promissary note with investor, to be included in escrow, be sufficient to ensure I get paid?
Am I missing something of significance here?
This is important because I am going out Monday to get the sellers signiture on something. Just not sure what.
Just the subtlties I am trying to figure out. Any opinions would be welcome..
John 
rainforrester,
That is a great question. Please let me know what sort of answers you find! I entered in to a contract yesterday and am getting ready to make an offer on another one today. I probably won't keep both. I need to wiggle some flexibility in there but there I have an advantage over other buyers by being able to close quickly if I need.
I guess this is the tradeoff?
JohnCl