How To Put Wholesaling Together Question
I have read numerous articles and books on wholesaling and flipping and am ready to do the next needed to start. I ve found a tiltle company who handles double and sim. closing and i getting my buyer lists. I guess my question is how to put the deal together with the title company. The seller would sign my p&s contact in which i put and/or assigns, the buyer or investor would then sign an assignment of contract. would i need to pre qualify the buyer if a loan was to be made, and wouldn't i need to make sure that the loan was not a fha loan due to seanoning issues. Also would there be 2 closing cost or just one. When would the buyer sign the assignment of contract, when he gets approved for the loan? Also Who would deal with his lender for providing information. I think i know just the basics, but putting it together in the real world takes experience. Any help would greatly be appreciated. thks [ Edited by ssutton on Date 04/01/2004 ]
My husband and I have done this. We put a house under contract between the seller and our company (don't forget weasel clauses) make sure you also state on the P&S agreement that you (Buyer) has the right to assign the contract.
Find a buyer, assign the contract (using a Assignment of Contract form) to the new buyer and collect your money at closing.
No double or sim closings.
You never close on anything.
By the way how are you getting your buyers list?
Hope this helps
When you find a buyer you should ask them:
If they have financing?
What kind of financing?
This would elimate any problems you think you might have.
Lori
[addsig]
Hi SSutton,
I'm interested in finding out how you obtain your buyer's lists as well...Thanks!
Peace & Blessings...Good fortunes in the REI world.
JB
with obtaining the buyer list , which is always an ongoing process because you can never have enough, if you know how to sort them, but one was was to look at you local investment club, here the rei club has a list and description of what the members do. They wouldnt be on there if they werent serious. Also brother -in-law work with a rehabber. Now im in the process of putting ads in different newspapers. there are many was to get your buyers list.
RE Princess,
I've had problems using the so called "with rights to assign" or "and or assigns to ",on my sales agreements, the buyers lenders did not want this as part of the contract. I now use a Realtor I found in the paper under "We Buy Houses"... they're connected with other investors that buy houses from them to rehab or whatever...they pay me 1 & a half to 2% of the selling price as a finders fee.
Makes the wholesaling life much easier to live in.
Hope this helps.
Clif
[addsig]
I only assign to cash buyers that can close in 10 days. I believe that most lenders will not like creating a new loan on an assignment.
Does anyone have experience wholsaling to a retail buyer?
pbody - how does the realtor help you? You have a contract with the owner and yourself. Are you listing the property? How does the realtor get paid?
Brenda
What does p & s mean?
purchase and sales