I'm A Little Confused About The Wholesale Process. Example...
Let's say that some one bought an ugly property at auction for $10k cash...but never got around to fixing it up and moved out of town.
They call me from my website and ask me if I can take it off thier hands. I know that I could sell it to another rehab investor for $15k.
What do I do? Do most attorneys know how to handle this - a double closing? I would definitely put in the purchase agreement something about subject to finding a buyer (in the next 30 days)? And would I still get access to their house to show the rehabbers even if we haven't closed yet.
(I've been focusing on subject-to investing...so I'm not really clear on the "nuts and bolts" of wholesaling.)
You enter into a purchase contract with the seller that is ASSIGNABLE then assign the contract to the new buyer for the difference in prices.
First off, whether or not you have 30 days to find a buyer, or if you get access to the home to show it is totally negotiable. If you can negotiate it and the seller accepts then that is what you get.
Now once you have a home under contract you can either assign the contract to your new buyer, or you can do a double close.
As long as you are dealing with a title company who has experience with investors, neither one of these methods should be news to them.
[addsig]