Is this Legitimate Wholesaling?

Question

Here's the situation: I'm finding FSBO's on CL and similar pages and then calling up the owner for some details. Then I'm thinking to myself, "OK, I'll just make a low-ball offer, then list back on--CL! Should be able to clear 5k on an assignment."

But I can't get past the fact that all I'm doing is inserting myself into someone else's deal, cutting out some of their profit, and doing the same thing they're already doing. Is this legitimate?

Tx,
jp

Demos Loizides · Answer

Don't make any agreement subject to a partner's approval if you don't have a partner. Use an option to purchase agreement, which give you the option, but not the obligation to purchase real estate for a limited period of time. You don't need any weasel clauses.

JP S. · Answer

Thank you, Darryl and Demos. I'm amazed at how seemingly simple this should be, but I always feel like right after I make the offer someone's going to jump out of the wall saying, "What in the $%^$ are you doing?!!"

A deal I am currently contemplating involves a simple plot of land in the midst of high-end homes. Is there anything special I should be concerned with? It actually sounds easier than doing a property. Can I use the same offer form that I would use were it a house? How would I back out of the deal should I not be able to find an assignee? There's no inspection it seems, so I can't use that. Subject to partner's approval, maybe?

How about pricing? That's probably a whole other ball game, but if you have a tip...

I'll certainly check the investors you mentioned, Darryl. Now, let's check these walls here...

Demos Loizides · Answer

You negotiate with the seller and get a signed agreement. Then you market the property to other buyers. That's about it.

Account Closed · Answer

FROM: DARRYL DEAN / Austin, Texas
          
          JP Sinek,
          
          That is exactly how Wholesaling is done!
          You find a deal, then you wholesale it...
          
          You are on the right path. And, since you are really asking, "How do I Wholesale Houses?", you need to educate yourself by reading all of the Wholesaling articles that you can find online for FREE.
          
          Here on BiggerPockets.com, Members Eric Medemar, Cris Chico, and Steph Davis, among others, are Big-Time Wholesalers. So I advise you to become colleagues with them, and follow all of their posts here, as well as to follow them on FaceBook, MySpace, Twitter, Activerain, Trulia, and all of the other Real Estate-related sites where you will find their articles.

darryldean

Is this Legitimate Wholesaling?

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