Wholesaling
Im new to the REI world and I have a question regarding a wholesale deal Im working:
I have several different people that came to me looking for a rent to own deal...they have fair credit, I have a broker friend that can get them a morgage right away. Im working this backwards I believe----Im looking to purchase the property based on what they want and then get the "spread" in my purchase price to their price they will pay to me. My question, how do I guarentee that they will buy the property that I buy for them?? Do I lock them in somehow BEFORE I buy the property???
Please help, time is runnning out to close this..... 
RacerX to Speedy:
I'm using my alter-Ego RACER-X better known as Derrick Ali at your service SPEEDY!
Anyhow, you migh want to use a Land Trust [preferrably the Equity Holding Trust(tm)]
I am the biggest advocate of MAKING MY PROFIT WHEN I BUY---however the Equity Holding Trust(tm) allws you to go one BETTER:
"Make you PROFIT when you ACQUIRE and guaranteed to earn it +MORE even if you NEVER BUY the PROPERTY!!!
Goto the SEARCh and Look up my previous articles related to the PACTrust(tm) and EQUITY HOLDING TRUST(tm).
Example: Your fair credit buyers can pay in for a 50% interest in the LAND TRUST which owns the home.
You and the Seller agree to lease it to 'your Investor/partner' (the fair credit buyers). You agree to pay 100% of the expenses of the Land Trust including the Mortgage Property Taxes and Insurance.
The fair credit buyers become the tenant and triple-net lease the home for 2-3 or 5 years when they can qualify for a new loan and pay off the original seller's mortgage.
This is kinda like buying the home subjectto then reSelling or Leasing w/Option to your fair credit buyers.
You guarantee your profit in many ways using the /PACTrust/EHTust(tm):
-Use and Occupancy: charge them higher rent than mkt. to live in a NICE HOME.
-Tax Benefits: IRC 163 sect b. allows Beneficiaries w/atleast 10% BI in a Land Trust to take the Mortgage Interest deductions off their income tax(see your Tax Professional)
-Existing Equity: Sell your split(%) of the current equity in the property.
-Future Equity: Sell them a % of the Future APPRECIATION in the home.
-Bump the reSell price over and above(10-15%) what your are buying from the original seller.
-Locator Fee for finding the fair credit buyers a NICE HOME to live in.
You see why I like the Equity Holding features available ONLY WHEN YOU SET UP A LAND TRUST THE RIGHT WAY?
Hope this Helps!
DERRICK ALI
[addsig]