Starting out with very little money, lets say I was to find a deal and put it under contract with intent to whole sale. I then found an investor interested in buying the contract. But then a buddy calls me who is willing to fund the deal. Could I let my buddy fund it and hold that property?
Yes, this is what the seller is expecting anyway. Unless you are very clear and upfront with the seller that you will be wholesaling their property they are likely expecting you to be the end buyer. So essentially you are just following through with the original purchase contract and eliminating the assignability option.
any good apps you recommend to help determine if you want to purchase a property?
So let’s say I find a property that’s worth 150,000 after repair, I negotiate and put the property under contract for 90,000. I find a buyer who is willing to pay 105,000. I guess I’m a little confused as to how a wholesale transaction goes down. Is there a new contract put together that assures me that I get that 15,000 or how does the closing work and wholesaler get paid?
@Ray Minjarez two things here, first BP has tools for both rental property calculations & Rehab estimates. You may want to purchase PRO membership for unlimited access to these tools. Small price to pay for a lot of useful tools. Secondly, with a wholesale transaction you are not drafting another purchase agreement with the end buyer, you are simply using an "assignment of contract". As long as the initial Purchase Agreement specifies "And/Or Assigns" or doesn't specify the purchase agreement as non-assignable you should be fine. With a profit that large on a lower priced property you may want to look into double closing however if that is an option for you. Let me know if I can help with anything else!
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