This is my first flip. The seller has accepted my email offer on her house. The cash buyer has accepted my price. Question: Do I still need to get the property under the contract or could I just connect the seller and the buyer and receive my small (5K) cut? I get that there is a chance of them circumventing me out of the deal plus taxes involved, but am I missing something else here?
Why wouldn’t you use a contract?
Introducing buyer and seller and receiving a fee is brokerage without a license (unless you are licensed). The contract gives you a fig leaf through equitable title, whereby you are selling your equitable title in the property to your buyer. An informal email would seem to be a bit shakier.
Got it! I'll use a contract. Thank you Phil. :)
Real estate contracts are required to be in writing. If you don't have a written contract you don't have a contract at all- and an email usually won't cut it
You most definitely want to use a Notice of Purchase/Sale Agreement. And if you are going to pass it off to a Rehabber/Flipper,then you will use an Assignment Agreement along with the Purchase Agreement. Without this the Buyer can and will circumvent you to avoid paying your Assignment Fee. I have seen a Wholesaler lose $10K due to this mistake.
@Anya Swanson it sounds like your attempting to wholesale this property and not fix and flip it yourself. Are you going be involved in the rehab? Either managing or fixing it yourself? Regardless....you need a contract to close and send to the title company.
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