BiggerPockets

Ok, I've heard of people doing this before, but I'd like to know the steps I need to take. I have a wholesaler w/ a property under contract for $95k. He is asking $110k for it. From my analysis I can sell it to an investor for $120k or so.

My question is, what are the detailed steps that I will need to take and what forms will I need to fill out to make this happen?

Jeff,

I have done transactions like this before. You have your buyer sign a contract with you just as they were buying from you and it would help if you used the wholesalers closing attorney and make sure all parties know what is going on. When you go to close the attorney will make sure the money is assigned properly. Thats all I can tell you.

I do these deals a lot. I've used flex options, but I didn't like them because if the end buyer is using financing to buy the property the amount of cash he has may be limited which limits how much you can charge him to assign the flex to him.

Drawing up a PSA between you and the wholesaler doen't work if the wholesaler is doing an assignment and not a double close so I didn't find that method helpful. There could be another way around it, I don't know.

The method that works best for me is signing a JV (joint venture) agreement between me and the wholesaler. The JV contract specifies how much my fee is. When I get an end buyer, I have the wholesaler send me the assignment contract which I forward to my end buyer and then get my buyer in touch with the wholesaler. When the deal closes the wholesaler sends me a check for the specified fee.

There are probably other ways to do this, but this is what has worked for me.

Bumped !