Realtor · Cranberry Township · Member since 2018 · 18 posts · 10 votes
Greetings everyone, (Pennsylvania Question)
I am new to the space and have goals of landing a couple deals by the end of the year..I have handful of distressed properties ready to be inquired on...with that in mind, I would first like to ask a couple questions I couldn't seem to find an answer to on forums.
In PA, how do you wholesale legally? Do you just use a buyer / seller agreements? May be an easy question but I would like to start my first deal knowing I'm legally sound and not taking additional taxes when can be avoided. Thanks!
Morning Macen, yes it is legal to wholesale in PA. Please note, though, with a wholesale you are selling a CONTRACT, NOT a PROPERTY. This is the main element when establishing a deal. Not sure what area of PA you're in, but I'd strongly suggest going to REI meetings and talking to those who wholesale in your area. These meetings can be found on websites like MeetUp or here on Bigger Pockets. For your contract in particular, you would need verbiage that says something like either
"In reference to the contract for purchase and sale... between Macen DiPaolo or assigns (buyer) and _____ (seller)"
....or add a sentence like...
"Buyer reserves the unqualified right to sell the interest in this contract to any person, entity or corporation at his sole discretion."
Those two moves state in the contract that though you came to an agreement with the seller on terms, the person signing the closing documents may not be you.
Hope that helps - I'm not a large wholesaler myself, really only wholesale deals I don't want to keep, but there are many forums, Bigger Pockets Podcast and YouTube videos for bigger pockets and wholesalers (Max Maxwell "How to Wholesale")