The difference was – I had a signed purchase agreement between myself and the seller, which gave me an equitable interest in the property. How was I supposed to get the deal closed? The goal of this document isn’t to inform my cash buyers of every last detail about the property. make your dream a reality! I also try to gather enough information to fill out a property prospectus report. Your end buyer can either send the funds directly to your closing agent, or they can send the funds to you, and YOU can give it to your closing agent. Again, there’s no “magic” to the documents I use. The only difference is that it now applies to the new buyer (Assignee) instead of the original buyer (Assignor). Is Your Property In A Flood Zone? The Inspection Checklist is a printer-friendly report that can be used to walkthrough potential rehab/wholesale properties to quantify work items so you can create a detailed and accurate repair cost estimate! Facebook Ads Made Simple (Even Your Kids Can Do It)! Since you’re not the actual end-buyer, it’s not imperative that you learn every intricate detail about the property you have under contract. Most of these explanations only got me 80% there. The idea is just to collect something to show that the buyer is serious and not blowing smoke. What is a wholesale assignment contract? Here are some issues that make me consider wholesaling through an assignment, rather than buying a property outright: It’s important to remember that even when you do have money to buy a property, it doesn’t necessarily mean you should. – the new person or entity that has the cash and desire to jump into your shoes and become the actual end buyer of the property). To … Wholesale Real Estate is a specialized method for buying real estate. For a long time, my real estate investing business followed a pretty simple model that worked extremely well about 80% of the time. ), Wholesaling Made Simple! Seth Williams is the Founder of REtipster.com - an online community that offers real-world guidance for real estate investors. When it comes to the earnest deposit, when the total purchase price is $10K – $30K, I’ll usually ask for approximately 10% of the total purchase price, and I round it to the nearest $1,000. In this video you will learn how to make sure your deal closes so you get paid with my closing checklist for Wholesaling Real Estate. Once you have both the Assignment Agreement and the funds required for your deposit, you’ll need to deliver the following documentation to your Closing Agent (i.e. – Title Company or Closing Attorney): This should be everything they need to prepare the necessary paperwork for all parties to sign and move forward with closing the transaction. Successful wholesalers are able to generate income by purchasing large amounts of properties and then selling their high quantity of inventory for a profit. The 4 core strategies ... • Select a real estate professional and a title company • to work with • Financing properties –mortgage, private … It’s time to end the confusion, cut through the nonsense and discover ten simple steps to mastering the wholesaling business. What kind of Purchase Agreement was I supposed to use? Get in Touch with Motivated Sellers. In order to start the process, we will need a signed copy of the attached purchase agreement. With this kind of statement included in your listing, it should be clear to any interested parties that you are not the current owner. So, before you swear off buying properties outright, remember that every deal has different considerations you need to think about. You will communicate with the Seller throughout the process (they won’t ever be left in the dark), so they know what’s happening. We have entered into a purchase contract with the current owner to buy the property for $________ (this price includes payment to the owner and all associated fees and estimated closing costs) and for an assignment fee of $_______, we will sell our rights in this contract to a third party. Assigning a contract is a very different type of transaction than buying a property outright with a traditional closing. Mine looks something like this…. I’ll be completely honest – at the time of this writing, I still don’t consider myself an “expert” in wholesaling via assigning contracts, because it isn’t been my primary strategy. All it takes is a clear explanation from you, so they understand what to expect. It’s important to explain all the basics to the seller, but you don’t want to bombard them with information they don’t need to know. After my first dozen deals or so, I started to learn that some properties were MUCH harder to sell than others and I didn’t always have the foresight to know which properties would take significantly longer to sell. A written statement would be helpful. I’ve already explained these techniques pretty thoroughly in a number of articles throughout this blog. Tweet. That being said – I should warn you that not all closing agents are created equal. Real Estate Investor Training INTRODUCTION Welcome to Real Estate Investor Training! We will be compensated by the buyer (which we will find) and when the transaction is closed, you will receive the full sale price stated in the attached purchase agreement. Real estate wholesaling, as an investment strategy, functions in essentially the same way. – it didn’t, When I’m not very confident about the property’s true market value, When there are potential problems with the property that I can’t get resolved, If I don’t have the money to invest and buy the property outright, The seller isn’t willing to lower their asking price to my liking (but it’s still a good deal, with enough profit margin to be a good deal for someone else), The property isn’t local and I don’t want to take on the liability of ownership, You won’t be able to make any improvements to the property (because you don’t own it and it’s not yours to improve), You’ll have a shorter window of time to get the deal done (because your contract won’t last forever), The closing process will require more attention to detail than the simplicity of a cash closing, Your buyer MUST have the ability to pay all-cash (because most mortgage lenders aren’t willing to deal with the complexities of an assigned contract). By the time I got to the point of realizing I had made a pricing or due diligence mistake with one of my properties, it was clear that if I could do it all over again, I wouldn’t have bought this property at the price I paid for it. How To Write Offers That Get Accepted (With 3 Simple Pages), Everything You Need To Know About Getting Your County’s Delinquent Tax List, The Ultimate Negotiation Technique That Nobody Talks About, How to Avoid the Guilt Trip When Sending Low Offers, One Weird Trick to Find the Size, Shape, Location & Dimensions of Your Property, The Fastest Way to Research Any Property in the United States, How To Wholesale Real Estate – A Conversation With Braden of WarriorWholesaler.com, 101 Things Everyone Needs To Know About Real Estate Investing. Goals, these issues may or may not make the property an ideal investment strategy for anyone with little to! To inform my cash buyers of every last detail about the property from the Seller would make turn! 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