I'm in the Pittsburgh area and just have a two questions regarding wholesaling.
1. How's the wholesaling market here in Pittsburgh?
2. Are wholesalers able to assign contracts at closing on a wholesale deal or is it required to do a double close in PA?
Any input/advice is greatly appreciated!
I think there's a lot of competition in Pittsburgh for wholesaling. But there's always room for someone who will do the work well.
The second question is a lawyer question. I'm not one. However I will say it's my understanding and practice (thus far) to be paid a release fee to give your contract rights to an end buyer, whereas assigning is acting as a real estate agent - which could still be okay given that you are an agent.
Double closing is still the purest approach, but has greater transaction costs. Regardless of your position on assigning/releasing, a double close can be valuable if the difference in prices is enough to make one of the parties bulk.
Wholesaling in Pittsburgh is a saturated market as far as very desirable areas. Once you get away from the city center into less desirable neighborhoods, the competition decreases; however thats not where the biggest profits are made. Pittsburgh is a large market with lots of housing stock in those less desirable areas.
This is not legal advice and I would recommend you consult a lawyer, but an assignment contract is a popular thing to do in PA. Some people use double closings, its a matter of preference in terms of how comfortable you are with the process and the parties involved.
Jay & Jeremy thanks for the comments - I appreciate the input.
Hi Justin, have you done any wholesaling deals in PA yet ?
The reason I ask is I’m new to wholesaling and I’m gathering all the contracts I need right now to get started and I was also wondering if you could assign them or have to do a double closing.