Getting A house under contract THEN closing?

2 Replies

So I haven't done anything in wholesaling yet, and here's the reason... There's really 2 questions here. 

When I listen to courses and videos or read articles, they all say "sign the house ASAP then go into closing" and quit frankly it confuses me. 

SO THE QUESTION: When the owners of a house accept your offer and you sign the house under your name to flip it, even tho you signed, are you able to get out of the contract before closing? 

because the house is in your name and your rights to do what you want when you sign for the price agreed, but closing hasn't happened yet, or is closing just the payment... but if that's the case then how do you close without the buyer being there at the same time if he has the money...  I DON'T UNDERSTAND! IF someone could explain I would greatly appreciate it! 

QUESTION #2: Everyone I listen to or talk to say "sign the closing contract then bring in the buyer like an hour later for the assignment agreement"

Because if you sign the closing contract with the seller and the buyer backs out last second, you already signed the closing contract aren't you stuck with the house at that point?  

Thank you for your time! 

You want to put your name or company name with "and/or assigns" after so you can assign the contract. If you do not have the funds to close the deal and the buyer backs out then you will either have to come up with the funds, terminate or talk the seller into extending the contract to find another buyer. In this market you definitely want to get the home under contract as soon as possible and then do your due diligence work. 

Be upfront with the seller.  Don't make them think that you have the money to close.  When you don't.  If you can't find a buyer you might be leaving the seller out to dry.  If you are honest with them.  At least they know that there is a possibility that it will not close.

In your contract with the seller you should have an 'escape' clause.  Such as if you can't find a buyer within 10 days or subject to your partners approval.  

Question #1 reply:  When you 'sign the house' your next step is to find an investor/buyer.  Not to immediately go to closing.

I'm not clear on question #2.  PM me if you want to discuss.

Good luck