Found a off market property - now what? How does one wholesale?

Found a off market property - now what? How does one wholesale?

Rental Property Investor · Houston, TX · Member since 2019 · 19 posts · 5 votes

If I met an owner of a non-listed property in Houston Texas that wants to sell, and the numbers look good, but I decide not to use my own money but sell the agreement to someone else (whole sale, etc), what documents would I need to have signed between the seller and I? I'm new at this so I just want to make sure I have the right forms and take the right steps. 

1. Found the owner of a property that wants to sell at a very good price

2. Have the owner sign some type of seller agreement agreeing on terms? 

3. Reach out to my network to see if someone wants to buy this agreement from me? 

4. Sign agreement with investor. 

5. Inform the owner that I will not be buying the property but that I have an investor that will buy it? 

What forms would I need to have signed by the owner of the property and the investor that is interested? How do I include my percentage or $ fee? 

If there are any recommended resources that I read then I'd of course appreciate if someone points me in that direction. 

Thanks in advance!

Ben

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Contractor · Magnolia, TX · Member since 2016 · 279 posts · 155 votes
7y

All you need is a signed purchase & sale agreement (PSA) between you and the seller. In the "buyer" area, you put "Your Name &/or Assigns," although I think in Texas PSA's are assignable by default. That's it. Make sure you negotiate a long enough contingency period that you have time to find a buyer. I'm not sure what you need between you and your buyer, and I'm not sure what you need to mark on the contract when you sell it (if anything), but you don't have to notify the original seller of anything.

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  • Contractor · Magnolia, TX · Member since 2016 · 279 posts · 155 votes
    7y

    All you need is a signed purchase & sale agreement (PSA) between you and the seller. In the "buyer" area, you put "Your Name &/or Assigns," although I think in Texas PSA's are assignable by default. That's it. Make sure you negotiate a long enough contingency period that you have time to find a buyer. I'm not sure what you need between you and your buyer, and I'm not sure what you need to mark on the contract when you sell it (if anything), but you don't have to notify the original seller of anything.

  • Specialist · San Antonio, TX · Member since 2015 · 909 posts · 297 votes
    7y

    youll need to have buyer sign an assignment contract between you and buyer, then they need to bring deposit check to title, once they have done that THEN you can supply them with the PSA, as you should, once youve done that youve done your job collect your money at closing. make sure it says on agreement NON refundable so you can get your money even if they dont close

  • Rental Property Investor · Houston, TX · Member since 2019 · 19 posts · 5 votes
    7y

    @Justin Kane

    Those are great points @Justin Kane . How long of a contingency should I have in the PSA to find a buyer? Should I include any other contingencies? Thanks again!!

  • Rental Property Investor · Houston, TX · Member since 2019 · 19 posts · 5 votes
    7y

    @Andrew Taylor

    Thank you @Andrew Taylor . What various contingencies would you recommend and how long should I ask for finding buyer?

  • Contractor · Magnolia, TX · Member since 2016 · 279 posts · 155 votes
    7y

    @Ben Sherman Ask for however long you think you can get away with. The longer the better. And don't mention anything to the seller about needing time to find a buyer; that's your business, not his.

  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    7y

    I disagree that contracts in Texas are generally assignable by default. You should read up on SB1101.0045

    In short, assign for fee, disclose, and institute some underwriting for your buyers so that you can maintain credibility with future sellers.

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