Updated almost 10 years ago on . Most recent reply
Wholesaling basics
Hey BP community,
Washington state here and I am new to wholesale. I have a good handle on the overall process from resources on this site. Hopefully someone can help fill in some of the finer details.
-When you find a house to put under contract, where do you find a purchase and sale agreement? Is a real estate attorney needed or are there other options? Also where do you find an assignment agreement?
-How does Earnest Deposit work? It's an agreed upon amount by the seller and wholesaler but where is that money typically deposited?
-When the buyer has agreed to purchasing, all the paperwork is handed over to the closing agent. Do the buyers usually provide a closing agent or is this someone the wholesaler must find?
Apologies for all of the questions. I am pretty excited to get started. I just wanted to start on the right foot. Thanks greatly for your time and assistance!
Most Popular Reply
I'll take a crack at these...
1. Contract. You can find multiple examples here on Biggerpockets. https://www.biggerpockets.com/files/category/contr...
You can also use google and type in Northwest Multiple Listing Source Purchase and Sale Contract and find the one commonly used by many agents. Other investors use this, but may change is slightly to fit their needs.
I have one from a real estate attorney. I use it as it can also be used for owner financing agreements, lease options, as well as wholesaling.
2. Typically, when you get the P&S executed, you will forward it to a investor friendly title company that you have already contacted. They will open a file/account for this property as well as open escrow. Earnest Money is typically held by them.
3. See #2 above. Most wholesalers I have worked with will already have a file opened with a reputable title company. When I wholesale a property, that is exactly what I do.