Under contract, now what?!

3 Replies

I got a house under contract on Saturday 6/14. I placed a craigslist ad and now have someone interested. what do I do from here? what contract should I use? its located in Pennsylvania. I have a contract that I downloaded from here but its for texas. Also how do I deal with the earnest money deposit? Does my whole assignment fee get deposited into escrow? ALSO it was listed by a realtor so the realtor office had me make out the check to the realtor escrow account. is that who I have the buyer make out his check to? should it be in the amount of the assignment fee? Thanks for all your help!!!!

@Tim Hall @Joe Gore should be able to answer all those questions. I wanted to ask if you have an attorney lined up to review the contract before you present it to be signed. From my understanding, wholesaling can be very profitable, but can also put you in a world of hurt if you violate any of the myriad state and federal laws. I wish I could be of more help, as I know next to nothing about wholesaling but to tell you to proceed with caution especially when you are starting out


Sebastian

Read clause 20 of your sales agreement. You cannot assign your current contract unless you get written consent from the seller. You should have struck this clause out prior to presenting the offer to the seller. Now you need to disclose to your agent your intentions and get written permission from the seller to assign the agreement. If the seller does not give permission, your stuck and could lose your hand money.

If there is a big enough spread in the deal consider double closing - meaning you schedule the closing with your end buyer on the same day that you're closing with the seller. Keep in mind that you'll incur closing costs on both the buy and sell side if you do this - but if the spread is big enough it may be worth it. You will need funds to cover the closing, either your money or money from a transactional lender.

By the way, congrats on getting out there and taking action! Many people here will poo-poo your transaction. Ignore them. As Richard DeVos said, "The easiest thing to find on God's green earth is someone to tell you all the things you cannot do." It's good to see people moving forward even if they're doing it with a few misgivings and are not doing it to a T. Everyone who ran a 4-minute mile first started by crawling. Again, congrats!

@jerry

Yeah you're right about clause 20! So i guess its a good thing i added an addendum that says the seller and i are bound as well as all heirs, executors, etc, etc, and assigns. He signed, i signed, we're golden!

The spread is pretty big, i think it is anyway. 15-20K... Why would i double close? What are the pros of that?

People can poo poo all they want. I didnt get in this business to please other people, that's for sure! I'll have the last laugh anyway while im stolling to the bank with a 5 digit check after 6 ish hours of work!