First Wholesale Deal

[Joshua Blond]

Hi BP,

I'm new to forum and to RE. I'm still in the learning process and been lurking the site for a few months now. I've been looking for the perfect property in Kansas City for my first flip for the last couple weeks (of course this makes me nervous) I have a good connection on all/any repairs that need to be done. 

Anyways, I've ran into a deal that was thrown at me from one of my REI buddies i grew up with. He purchased 80 low end properties about 2 years ago and is renting them all out in a C-D class neighborhood in Kansas City MO (Ghetto). Without getting into any number details he's offered to sell me 3 properties at 6k each. If I know an investor that wants to purchase these properties at 15k each as-is how would i work an assignment into the deal. I really don't want to purchase these properties privately (do not have an LLC yet). Im pretty sure this is considered wholesaling. The motivated seller is a good friend of mine so i trust him. The deal just sounds too good to be true. Also, for my first deal in RE i feel as if it is a little complicated.

Any feedback is greatly appreciated!

[Steve Vaughan]

This is your buddy.  I would be very clear of my intentions and make sure it is ok with him.  If he is ok with you shopping his offer of properties with a good guy discount, then go for it.  

Because you know him so well, I would probably forget the purchase and sale agreement assignment and go straight for an exclusive option to  purchase, which is recordable.  Have the right to assign the option. Give yourself enough time to find your buyer.  The end buyer pays you the diff between your option price and the sales price in exchange for a quitclaim deed from you.  It's stronger than a PSA  in my area.  Not legal advice,  just what I would do at this time in my area.  Good find @Joshua Blond!