Can You Answer These Questions?
Hi everyone,
I don't know much about wholesaling and wanted pick your brains on two subjects.
1) I've read several books that say to lock the properties EVEN IF you don't want to buy it and look for someone to assign it. My question is , what if you can't find someone before you have to close? Do you guys feel you take on a lot of risk not knowing if you can close on time? Sometimes the good deals are the ones with short closings. What kind of clauses do you have to protect yourself.
2) If you assign to a retail buyer or investor, there are no seasoning issues, correct? The seller would still have been a title for a considerable amount of time.
Best Regards,
Bginvestor
Quite often wholesale deals are deeply discounted cash offers with quick closings. As a result, the seller is frequently willing to agree to sell with only a small amount of earnest money down.
If you've done your homework, and the numbers are right for an investor to buy, you can call all of those "I buy houses" type ads in the local newspaper to find your buyer.
If you have bargains for sale bargain hunters will buy them". If for some reason that you can't find a buyer, you can walk away from the deal, and your earnest money deposit.
If you assign your contract to your new buyer, you were never on title, and there are no more seasoning issues than there would have been if you had purchased the property yourself.
Good luck,
Jeff[ Edited by jeff12002 on Date 10/19/2003 ]