Updated about 9 years ago on . Most recent reply
Whole sale contract
Is there a site online where I can have a lawyer write up my wholesale contract so I can make sure I am fully covered.? Also I am just starting out. So I do have a few questions if anyone would like to answer. One- when I find an investor to wholesale my contract to, do they pay me or pay the person who's house it is?
Two- Do I have to tell them how much I got the contract for?
Three- Do I have to tell the seller how much I wholesaled it for?
Thank you to anyone who can help me with these answers.
Most Popular Reply
It depends on if you are actually buying the property or doing an assignment. My method is if I'm making more than $10,000 on the deal I do a double close. This means that I contract with the seller and close, then immediately sell the property to the investor. The title company takes care of all the transactions. Yes this costs a little more because of the two closings but it is worth it for me because I don't want either the seller or investor to know how much I'm making. I may want to use the investor again for another transaction.
But if the amount is less than $10,000 then I just do an assignment. in this method you get a contract with the seller and you basically sell the contract to an investor. All you need then is a 1 page Assignment Agreement and the investor closes directly in one transaction with the seller. The title company pays you for your assignment fee out of the closing.