How would I ask for a wholesaling contract?

2 Replies

I did some networking and met some investors who buy fixer uppers. They told me I could do wholesaling. When I'm meeting with a seller, and we have negotiated a price on the property. How would I ask for a contract for wholesaling. What should I do before I recieve a contract? What should I do after I recieve a contract? ( Go to a lawyer ) How do I sell my contract so I don't get ripped off? Do I ask for cash or a check? Do I write my own contract for a proof of purchase that the buyer has to sign, to get my deal?

Im not a lawyer and this is not legal advice. Check with your local laws

I believe The bigger pockets file place has Purchase Agreements you would sign with your seller (homeowner). It sounds like you are pretty new so you ideally want an inspection contingency that you can cancel the contract up until the date of closing although it isn’t ethical to lead a desperate seller on with the promise of a quick sale if you don’t have the cash to close. Also sophisticated sellers will probably object to that kind of contingency so you may need to make it a 7 day inspection contingency.

The BP file place definitely has assignment agreements that you would assign your interest in the property to the end buyer for a fee. Whether you get paid first or out of escrow is up to what you negotiate. Getting a deposit up front is a good idea. The size depends on the size of the deal and if you have the ability to buy if they can’t perform.

As to not getting ripped off it really depends on your ability to determine the value of what you have. You may get under paid on your first couple but at least it gets you in the game and you learn. You could pay for a home inspection (~$500) and a broker’s price opinion (~$150) on your first couple. The BPO will be of current value if you listed with a realtor so no cash buyer will pay that unless you list it on the MLS which is wholetailing.

You don't ask the Seller to sign a wholesaling contract, they will have no clue what you are talking about. If you find a deal that has good value for yourself and investors then pay a local real estate attorney that can put an assignment clause in a regular purchase and sale agreement. Have the Seller sign that contract and get a. second assignment contract with your fee for you partners to sign.

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