Can you add another buyer to a sales contract after it has been signed by the seller and the buyer? Then after you close on the property, release yourself from the contract for a wholesale fee.
My reason for asking is trying to figure out how to close a wholesale deal when you aren't able to assign the contract, don't want to using transnational lending or a double close.
As I understand it NO unless the buyer and seller agree and initial the changes on the original contract and exactly how will you release yourself from a legally binding contract ?
Land trusts. Ask your lawyer how to properly do it.
But why are you avoiding those ways?
No, not any more than you can unilaterally change the purchase price. Good luck.
I'm avoid those ways to close to minimize closing costs. I know using a double closing or transnational lender you will be the closing cost twice.
To clarify, I would release myself after the closing date.
I'm imaging that it goes down like this:
- I put a property under contract.
- I add a partner to the contract so we are both on the contract.
- After we buy the house, he signs me off the title/deed (not sure I I know the difference)
Am I way off base? Trying to avoid closing cost to allow more profit for the end buyer and myself.
This conversation looks to be 4 years old so I'm very late to the party.
But hopefully my response will help the next wholesaler.
I have been able to "add a buyer" to a purchase agreement and at closing I sign a quit claim deed; releasing my interest in the property.
A contract was established with myself and my buyer for them to pay me X amount of dollars as my wholesale fee.
My buyer went on to profit 100K from the deal and I picked up a nice check as well.