Accidental Wholesale Opportunity? What now?

Question

Hello all,

A seller I reached out to said they were not looking to sell the property I was asking about but that they had another property they do want to sell quick and cheap.

This property is not in my area or my criteria. I'd like to wholesale it to another investor.

After doing quite a bit of research, reading books, and wasting $20 on a Wholesaling DVD I still have some questions.

>Seller accepts my offer. Is $100 deposit on a 75K house acceptable?

>When signing a contract for the purpose of transfer/assignment to another buyer what is the proper way for me to identify myself as the buyer? (Ex. and or assigns VS entity)

Thanks everybody for your continued support.

Chris Bounds · Answer

Jack,

Earnest money is completely negotiable.  I've bought several houses with zero EM.  Whatever amount you end up agreeing on be sure to deposit it with a title company / closing agent instead of giving it to the seller directly.

Regarding wholesaling, you should let the seller know that is your intention.  Using [your name/company name] "and/or assigns" is one way to write to write your name as the buyer.  In Texas, real estate contracts are assignable anyway so that is not necessary.  I'd assume that to be the same in MA, but you might want to check on that with a title company first.

Good luck!

Jack Sarcia · Answer

Thank you Chris and Shaun for your responses.

@Shaun Reilly

Yes it is in Massachusetts. In the Foxboro/Wrentham area.

Its a 2 family that has a failed septic and might need a roof. 1 unit is occupied. 1600sqft+-

I have the seller verbally at about 100k. I believe its current market value is about 150k and the ARV is about 250k with 50k in estimated repairs.

This is not really in my area but I would like to wholesale it to another investor for a small fee + experience.

Shaun Reilly · Answer

As Chris said the EMD is whatever you guys agree too.

Around here you usually see it as $500-1000 on listed places but no reason you can't say $100 and see if they are okay with it.

You can generally assign MA contracts but it can be good to get ones tailored more towards wholesaling too.  Up to you at how much you want to delve into that.

Is the house in MA?  I might buy it from you.  :)