Are you talking about making offers on REOs? If so, you will not be able to assign your contract, as the banks will have a clause in their addenda that prohibits it. I wrote a series of articles about how to get around the no-assignment clause when dealing with REOs. It starts here:
http://www.biggerpockets.com/renewsblog/2009/09/10/close-reo-wholesale-deals-part-1-5/

If you are wholesaling REOs, then yes, there will be two separate closings, and therefore two sets of closing costs. I always pass those on to my end buyer, though, so I only end up paying my share of the fees for the first transaction between me and the bank.

If you are wholesaling a non-REO or short sale deal, then there will just be one set of closing costs as there will only be one sale taking place.

As far as getting your license- that’s up to you. I don’t have mine- I just go directly to the listing agents and make my offers that way…

Hope that helps,
Steph
.-= Stephani Davis´s last blog ..Hump Day Updates- Brought to you by Chef Steph. Hehe. =-.

I’m guessing that it would be in my best interest to get my RE license rather than have my RE agent writing these contracts for me?
Also, as far as closing costs go. Am I actually closing this house and then reselling it? Or is the assigned person closing the with the orig seller and I’m simply taking the difference?
If I’m closing and reselling, then an added expense would be all the fees associated w. closing… I’ll look into Steve’s course. Thanks for the help!!
Mark

You would use the same contract as you are using now, but then once you find a buyer you would assign that contract to them using an assignment of contract agreement. The assignment agreement basically says that you are assigning all of your rights in the original contract over to your buyer for X amount of dollars. So, for example, if you put the property under contract for 100k and then found a buyer for 110k, you would then assign the contract over to them for 10k using an assignment of contract agreement.

Make sense?

I recommend Steve’s Cook’s wholesaling course if you are looking for an in depth explanation of how the process works…

Hope that helps,
Steph

P.S.
If you try and explain this process to your realtor, he/she will probably tell you that it is illegal.
.-= Stephani Davis´s last blog ..Hump Day Updates- Brought to you by Chef Steph. Hehe. =-.

1. I typically put a contract on a property through my RE agent (as I’m not licensed) . I believe that the contract is usually contingent on me getting preapproval from a lending institutions, and then isn’t it also contingent on me securing the funding to close the deal. How is contract for wholesale done? What are the differences between that contract, and the contracts I’ve been accustomed to?

2. OK, so I found a killer deal (as I often do, but am short funds to get approval), and I’ve got it locked under contract (which I should know how to do after reading answer to 1). What is the next step in re-assigning the contract to someone else? How long do I have to do it? Does the closing date set in my original contract need to be fulfilled? OK OK, I realize I’m new to this, so if you could recommend a good advanced level book, that would be great.

Thanks for your time,
Mark

I’m glad to see you’re not saying we must or should build our buyers list first. I’ve started seeing posts from newbie wholesalers that say something like, “I have a serious cash buyer. I need a property”. All they are focusing on is getting the buyer. They’re not wholesaling at all. They want us to bird dog for them. My ususal reply to them is, “If we find the property, what does that make us? The bird dog? If we are the wholsesaler, then what are you?”

It’s one thing to build a buyers list, but you have to be able to find a deal; negotiate a contract; and market a property. Some people just don’t get it.

Keep up the great work!

Demos

I would have sent Evan’s email to my trash folder and carried on with my day.

Steph
.-= Stephani´s last blog ..Another Deal and a Word About Persistence =-.

I’m a Real Estate investor in Pennsylvania and throughout the United States. I purchase flip and assign contracts. I use various means to advertise the properties I have available. I use blogs, emails,zillow.com,emails,zillow.com,truila,Biggerpockets,myspace and Craigslist just to name a few .
I recently posted an ad on Craigslist for 19 properties I have under contract in Chester, Pennsylvania and I received what I thought was a disturbing response. Contain within this post is the email response that I’d received and my response. (Email Received)-
“ Dear Mr. Habeeb,
I saw your ad on craigslist. Please don’t insult people’s intelligence by selling 10k properties for 50k. I’m sure you are aware that these properties in sun village and highland gardens are the absolute worst areas in Chester. I know you are trying to pass off your head ache to others. Shame on you for posting pictures of the park near sun village but not posting pictures of the 20 drug dealers who live back there”.

Evan
(My Response)
I am not the property’s owner but am selling the properties for the owner. These properties were not purchased for $10K but were between $20,000-$30,000. With $20k-$30K in repairs, (new windows, heating systems, walls and new roofs) they are being sold at a lose.

Having moved here from Virginia in early September, I had no idea that the area was called Sun Village and Highland Gardens. I consider most neighborhoods in Philadelphia to be infested with drug dealers.

Why? Because parents are either too busy with their own concerns or too busy to get involved with their children’s lives. Parents and neighbors stand by while their community and the behaviors of these youth go unchecked and unmonitored.

You say “Shame on you for posting pictures of the park near sun village but not posting pictures of the 20 drug dealers who live back there.” Pictures of the park were taken because they are close to the houses. I was not aware of the drug dealers when these photos were taken.

If this community is so infested, then shame on you for sitting in such a community just watching things happen unnoticed. What have you done to prevent this behavior? Have you taken pictures of them to show to the police? Have you even reported the activity to the police? While you sit and look out of your window, no improvements can be made by such passive behavior. Have you formed a neighborhood watch program to observe and report these activities? Have you marched throughout the neighborhood in protest?

Have you contacted the police and asked about putting surveillance cameras in these areas? They are doing that in some areas of Philadelphia. Or are you hiding the actions of our sons, grandsons and nephews? Have you talked to the drug dealers and told them that you do not want drugs in your neighborhood. I have lived in neighborhoods like that and have fought drug dealers. I fear God not drug dealers.

I am trying to sell the properties in that community. The owner wishes to buy and repair more homes in the community. This will help to house families instead of letting the property become an eyesore or even another drug house. This, along with the new casino close by, will help to improve the community and the property values.

I don’t blame you but I blame myself for the problems in our communities because I know I cannot look towards others to solve these problems. So yes, I too, am responsible because I know making a difference starts with me.

Please feel free to contact me if you need help with your drug infestation situation. I have methods that may work.

J Habeeb L Cropps III
Nahab Properties, LLC
Habeeb@NahabProperties.com

Totally agree with you- advertising a great deal is probably the best way to build your list. I do that all the time- and even if I don’t have a deal of my own to sell, I’ll market someone else’s. Works like a charm…

Steph
.-= Stephani Davis´s last blog ..Toastmasters, Craigslist, and Free Stuff. Oh My! =-.

I think a lot of new wholesalers get hung up on NOT having a buyers list and your pointing that if they do have a great deal, the finding buyers part is easy, is right on the money. Matter of fact, I would put that up as one of the best way to find actual and active buyers is to market an amazing deal and use that to build a buyers list with.