I'm new to the game, but i'm determined to make it, i feel an indescribable connection to the process. I'm awaiting a Carlton Sheets cd-compilation to give me a knowledgeable out-of-the-gate, but I noticed alot of people saying one of the big mistakes is waiting. I can't wait so I have some questions to any and all who will answer. :D
I've been tirelessly browsing the forums soaking up all the information I can get my hands on; but I have some unanswered questions. So here goes, my questions focus mainly on wholesaling, as I beleive that is the way I will begin this venture;
Regardless of the type of deal I theoretically come upon; a house in dis-repair at lower (ie, 70%ARV of market value) or pre-foreclosure, etc, what i'm basically looking to do is have someone sign an assignment, whereby I am entitled to purchase the house at said price in said amount of time.
Then during said amount of time I need to find a suitable purchaser who agrees to pay x amount more than I've paid for the property so that I can make a profit. I live in Canada, does anyone know what the actual document I am trying to have signed is referred to as?
Or basically can anyone give me a layman's terms run through what the wholesaling process covers, I have what I think is a fair idea, but no one (haven't been to a meeting yet, hard to find) to pick their brains and confirm what I beleive.
Thanks alot, love the forum. Onward and upward. :superman:
You always are signing a purchase contract with the seller. You would have your name and/or assigns on the purchase contract with the seller. You then would have the buyer sign an assignment of contract (assignment) with a specified assignment fee on it, or you have the buyer sign a purchase contract between you and the buyer (double closing) for the higher price.
The more you know before you start, the less "stupid" mistakes you'll make. Check out your local library. Theres a wealth of info there FREE! OK, there was one little shelf but there were some good books on that shelf :D
I think just checking out some of the articles on the left side and searching through some of the past postings on wholesaling and flipping can help fill in a lot of the gaps. You have a lot of experience at your fingertips here at biggerpockets. I'd recommend using it.
Thanks for the replies. I have been reading the side-bar articles as often as I can. This site is gold. Thanks. I just received Carlton Sheets No Money Down, and bouth Find It, Fix It, Flip It, at a local bookstore. Two books i hope will help me learn the business. I plan on being sure I know what I'm doing before I begin.
Glad you like the site Adam. Let us know if there is any way we can be of help.
SORRY! :oops: Starting at THIS site is a given! :D
21 year old newbie from brooklyn new york would love the opportunity to get tutored by a knowlegeble, experienced investor. thinking about getting started with wholesaling any ideas or leads contact calan vassell-646-338-0285
Ryan, have you tried this? I am curious about this one.
*You then would have the buyer sign an assignment of contract (assignment) *with a specified assignment fee on it, or you have the buyer sign a purchase
*contract between you and the buyer (double closing) for the higher price.
Sounds good, what kinda of issues did you run into doing this? I guess finding the right property is the biggest issue? Any other issues..? I have rentals, but I am interested in something a little shorter term such as this.
Yes, my main business is wholesaling. I actually buy probably less than half of the houses I put under contract. The others I mostly double close on but I also do some assignments.
Finding the right property is not as big of an issue as finding it for the right price.
Remember, price overcomes all objections.
These other posts on wholesaling might help you out, too.
Thanks Ryan I'll be sure to read the links you provided. One more quick question the basic principles of wholesaling apply to California as well? Sometimes things aren't very simple in CA.
just read the links: good stuff---must have more info..on wholesaling...will search...
Chernandez, as far as I know the basics of assigning a contract and double closing two contracts are the same through all fifty states. Assignments are actually extremely common in commercial deals (the standard Texas commercial contract actually has a box for if that contract is assignable or not), and the principle behind a double closing is pretty straight forward. In a double closing you are merely selling the property the same day you are buying it.
I would always recommend to anyone getting involved with creative real estate investment strategies to first consult a qualified attorney in the state that they are doing business in.
Check out the Wholesalers Start Here! discussion post