Wholesale deals In Colorado Guidance

Wholesale deals In Colorado Guidance

Member since 2021 · 4 posts · 2 votes

Hello, I have been doing some mass letter campaigns for wholesale deals in Colorado to try and build up my savings for my own properties since most things here are out of my budget. Initially it was for my own portfolio but realized I do not have the funds available for this market. I have been lucky and received a few responses back. They have given me prices for some land in some high demand areas. My only problem is I am a little hesitant to try to make a wholesale deal. I am wondering if there is anything specific I should know about wholesaling in Colorado? I assume that I would have a contract signed and have it be assignable. I then market the contract. Not the property since I am not licensed. I have told the owners about the process and they seem open to it. I would like to try wholesaling even if the contract can't get assigned. I feel like it has been a good experience so far talking and learning about the properties. It would be nice though to take it one more step and close a deal. Any suggestions for doing a wholesale deal in Colorado would be appreciated. 

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  • Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
    4y

    I think you texted me Zach and when I pressed for details you didn't supply them. Here's the deal with wholesaling that many wholesalers don't seem to get. Yes, you have to make the contract assignable with added language to that effect in Colorado; otherwise it isn't assignable. But the other thing is: if you are assigning a contract to me you must give me a copy of that contract and that seems to freak people out. But how can I agree to accept the terms of a contract if I am not allowed to see it? So you need a second document - an assignment agreement - this is where you spell out how much I am going to pay you for the contract you are offering. So you come to me with a property that you want to sell for $125,000. You have a contract for $100,000 that I get to see and read and you have an assignment agreement where I agree to pay you (at closing) $25,000 for giving me that great deal. 

  • Member since 2020 · 2 posts · 0 votes
    4y
    Quote from @Teri Feeney Styers:

    I think you texted me Zach and when I pressed for details you didn't supply them. Here's the deal with wholesaling that many wholesalers don't seem to get. Yes, you have to make the contract assignable with added language to that effect in Colorado; otherwise it isn't assignable. But the other thing is: if you are assigning a contract to me you must give me a copy of that contract and that seems to freak people out. But how can I agree to accept the terms of a contract if I am not allowed to see it? So you need a second document - an assignment agreement - this is where you spell out how much I am going to pay you for the contract you are offering. So you come to me with a property that you want to sell for $125,000. You have a contract for $100,000 that I get to see and read and you have an assignment agreement where I agree to pay you (at closing) $25,000 for giving me that great deal. 

    Hey Teri! 

    Thanks for the response. Unfortunately, it was not me that reached out to you. I have never reached out about any of the deals as I've been hesitant to move forward after receiving responses back. I appreciate your reply to help clarify some things. I am the type of person that wants to insure I know more about a subject and how to do it relatively right before moving forward. I would assume the best way to find a contract and assignment agreement that is legitimate is to speak with a real estate attorney? Or are there general ones online that you'd recommend?
  • Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
    4y

    Ok @Zachary Smith - weird coincidence. I was texted by a wholesaler who signed as "Zach"... The Colorado Real Estate Commission has a Contract to Purchase available to download on their website. Be prepared - it is 19 pages long. When I needed one I looked up some sample assignment contracts online and used them as a template to create my own.

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