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Wholesaling
Account Closed
  • Houston, TX
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Assigning Contracts / Wholesaling Questions

Account Closed
  • Houston, TX
Posted Aug 3 2008, 11:00

I am a novice RE Investor and have several questions about this area of investing. Many people interchange Bird-dogging and Wholesaling. I have studied a great deal and am ready to begin my career in this field. I want to Wholesale properties - put them under contract and "flip" to true end-buyers/rehabbers. In the beginning, due to cash, I do not want to truely purchase the properties unless absolutely necessary and then I have probably made a bad deal if I cannot flip the contract. I understand the numbers game before putting a property under contract. I will build reserves and then look into rehabbing and rental. I want to file an LLC for protection, advertising and credibility. I understand the marketing aspects - buyers lists, ads, business cards, bird dogs, networking, etc.

Questions:

Without a lawyer where can I obtain or purchase Non-Disclosure, Non-Compete and Master Fee Agreements?

I will use the standard (Texas) TREC 20-7 contract but I definitely want to have an exit strategy out of the contract. Do you recommend the "Option Period" for this strategy, maybe for 30 days, with closing 30 - 45 days after?

If not using the option period, how and where on the contract do you indicate how long you have control of the property? I will always be up-front with the seller about assigning the contract. Earnest money will be deposited with a title company.

How do you indicate payment on contract - all cash since flipping to an investor/rehabber? They may be financing through hard money...

Starting out do you recommend finding one or more realtors that works with investors to run comps, etc? If so, any realtor recommendations? Any suggestions for compensation, trade-outs to the realtor.

Any title companies and lenders you recommend that work with investors in Houston?

Sorry for the length of the thread but I would like any and all answers, comments and advice from other investors. Everyone has to start somewhere and I know I will always be learning about this industry. I believe I am off to a good start and this will work as I will not fail. I will not work for someone else again. Thanks for reading. If you would like to network or exchange ideas, please email me.

James

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J Scott
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  • Investor
  • Sarasota, FL
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J Scott
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  • Investor
  • Sarasota, FL
ModeratorReplied Jul 17 2012, 18:22
Originally posted by Will Barnard:
I have never bought a Hud home, so i too am unaware of deed restrictions, I put that in my comment simply because someone else pointed it out, I have no idea if it is true or not.

Just to clarify (for those who may be interested), HUD doesn't have any deed or resale restrictions...

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Will Barnard
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  • Santa Clarita, CA
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Will Barnard
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  • Santa Clarita, CA
ModeratorReplied Jul 17 2012, 21:21

Thanks for clearing that up Jason, I should not have repeated another's text without knowing it was fact, my mistake.

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