Wholesaling logistics

[Katrina P.]

Hey guys:

I have been primarily a buy-and-hold RE investor, but did one flip last year (which wound up being an epic FAIL, btw). Anyways, I just wanted to ask a quick question about wholesaling. If I find a deal on the MLS, and get it under contract, say for a 30-day close, how do I wholesale that deal? I guess what I'm asking is logistically, how do I make that happen (since the bank will be expecting me to close on the purchase)? Sorry this is such a "newly" question, but I've never wholesaled before. Thanks, in advance, for any input!!

Katrina

[Ned Carey]

Most MLS contracts say they cannot be assigned. You could get an addendum saying that is can be assigned but I wouldn't hold my breath.

The two basic ways are buy in an LLC and then assign the LLC at the closing table. Alternatively you can double close. Both of these can have pitfalls. Many Bank REO deals come with a restriction on reselling the property within 90 days. Many new investors may not understand buying an LLC vs buying the property and may shy away from the deal.

Personally I find it much more practical to do assignments that are not listed. Do deals directly with motivated sellers and most of the problems go away.