I am new to wholesaling. By new, I mean I have done some research however I am not ready to take what I have learned into the real world. I still have many questions about wholesaling. One of my question, which may be very simple to answer and may sound like a silly question to some is "Why would a seller place their home under contract to the wholesaler? Wouldn't the seller want the cash that you offered right away? Another question that I have "Is there two separate contracts used when using the assigning method and the double escrow method?
These questions may be very simple to answer but I just want some clarification on these topics.
Thank you guys for your help!
The homeowner has to be motivated by something to put the house under contract with a wholesaler. You have to find that motivation. There's many reasons the homeowner may be motivated to sell.
For example, he might be going through foreclosure and needs to sell his house before the bank forecloses. The homeowners might be divorcing and need to sell their house. There might have been a job transfer or job loss.
When you come to an agreement with the homeowner on price, you have to put in writing aka a contract. That contract is taken to a title company that will research the title to the property you are buying. Nothing would be worse than handing over a bag of cash and getting stuck with a property for which bad title work has been done. This is the reason it is impossible to give a homeowner cash right away. Encumbrances on a title can become a nightmare!
In FL, the FAR-BAR contract has a particular section regarding assainability that you can just check off. Check with your local real estate investors association.
If double escrow means the same as a a double closing, then you will need a contract from the seller to you and a contract between you and the end buyer (A to B, then B to C and you are B).
Hope that helps.
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