Questions about Wholesaling in Texas
I've studied wholesaling for a while and put it off to the side for about three years. I've gained a lot of knowledge and now want to pursue it full-time but I have some specific questions.
I will use a TREC contract in stead of these Option contracts - I know this works best in Texas and believe in the KISS approach. When you fill out with seller what do you put in the Earnest Money area - leave it blank or put to be determined? I don't know if the buying investor has a preference.
I want to use the Termination Option for 30 days or longer? Your thoughts and experience?
For Special Provisions I only plan to include -
1. Buyer may sell, assign or transfer all interests and rights in this contract - I will also make the seller fully aware of my intentions
2. Possibly a 10 business day satisfactory inspection clause
I don't want a bunch of "out" clauses - your thoughts?
I will use an Assignment of Contract I put together from finding many others on the net:
Do you indicate the buyer will deposit X amount non-refundable earnest money deposit and your assignment fee or do you just indicate your assignment fee?
I also plan to use a Non-Disclosure / Non-Compete to try and prevent behind my back deals. I just don't know if that would hinder me - requiring interested investors to sign this document before revealing the property address, etc. - your thoughts?
I do not want double closes so I will just assign my contracts so:
Do you get your fee, turn over the paperwork to the investor and go on to the next deal or do you have to babysit and make sure it closes and get your fee when the transaction is done? I've heard it done both ways. Your Thoughts?
I plan on starting with FSBO's or working with agents on MLS and will be avoided all REO's and Short Sales as I know the processes are much more involved and time consuming to wholesale - LLC's, Land Trust, EM Deposit, proof of funds, etc.
I would really appreciate some responses from the Texas Wholesalers on their process and other investors as well. Thanks.