Updated almost 2 years ago on . Most recent reply
WHOLESALING SUBJECT TO DEALS
When wholesaling a subject to deal, are you assigning your subject to deed for a fee before putting a tenant in the property? are you finding the deal, then selling your lead? exactly, what is the basic process of wholesaling a subject to deal. ive heard that people do it.
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
OK, forget about the subject to aspect for a second. You find a deal and wholesale it using an assignment. You (B) have a contract to purchase from a seller (A). Your buyer (C) makes an assignment contract with you for the amount of your fee. You assign your contact with A to C. You take all the paperwork to a title company. C brings the cash. Neglecting costs, this is the purchase price plus your fee. C buys directly from A, as a result of the assignment. A gets the amount they agreed to take. You get the amount of your fee. C gets a deed.
Now, with a subject to, A's probably not getting any cash. C would still bring enough cash to cover your fee. C buys from A, gets the deed and takes over A's loan. You get your fee from C.