Wholesaling, or Assigning Contracts?
A Friday Night rant.
When did wholesaling and assigning contracts become one and the same?
For those of you who sign a contract with no intent of closing if you can't assign it, STOP IT! It's morally and ethically wrong. When you sign a contract you are as obligated to fulfill your commitment as the seller is (specific performance). Only if a serious flaw is discovered that was unknown at the time you signed the contract should you be cancelling a contract.
Yes, I know legally you can get out of it through any of a myriad of weasel clauses. Don't be a weasel. Far too many "gurus" emphasize weasel clauses and fast cash for no money. However, you are often hurting the sellers, and yourself in the process.
I'm tired of cleaning up messes from "contract assigners" who promised a seller they would help them, only to disappear and never be heard from again.
Inevitably the "contract assigners" agreed to pay too much, raised the seller hopes, only to see them dashed at the end. People have sometimes moved out, signed their own contract to purchase a new home, and you are screwing them over. STOP IT!
If you have no intent to close without assigning, you ARE acting as an agent (net listing). It's all about INTENT and ABILITY TO CLOSE PEOPLE. Yes, this applies even if you disclose to the seller that you won't close yourself.
And guess what, having a real estate license doesn't change it one bit, or make it any more legal. If you have a license, just list it if you're not willing or able to close on it.
Real Estate Rule #1, Never, ever sign a contract that you are not willing and able to fulfill.
Personally, I don't care if you do assign the contract along the way to closing. (Your State Division of Real Estate may disagree.) If you don't assign it, Honor your word and signature and close on it. Sell it later as is, or trash it out first. make it a rental, and sell it turn key if you don't want to keep it. Rehab it yourself, then sell it retail.
Integrity. It's all about Integrity.
END OF RANT
