Constructing this contract - wholesaling an O.F. deal

6 Replies

Hello group. So, I am attempting to write up a contract on a wholesale deal. Caveat is, this deal is super lucrative as it offers Owner Financing! My big question is: How do I factor in my fee? Initially, I am thinking just increase the amount the end-buyer brings to the table (their down payment, essentially) 

I am thinking of tacking on a few thousand to end-buyer's down pay. Thoughts?

*disclaimer: Seller is aware I am wholesaling this deal. Gave them full disclosure, so they understand what is happening. Seller is an investor known to me, and agrees with this method of sale.  

Thanks, all!

Originally posted by @Elvin Green :

@Dave Rav Literally have the same thing happening. How much is your ARV?

@Elvin Green awesome! Good stuff. Mine is not much, as this is in a rural area. About 8 miles from nearest town, and 15 miles from a busy suburb here in SC. ARV is $130-140 for this 5BR mobile on land. Purchase price $70k.

What about you?

And what are you going to do re: contract?

 

Assuming your purchase contract has an assignment clause in it? If so, simply use an assignment agreement stating your fee to your end buyer, whatever that may be and your buyer pays that fee and assumes the original contract.

@Dave Rav it turned out that the owner owns it free and clear. So that helped DRAMATICALLY... We are looking to get the deal inked Monday. We had an appointment with them yesterday and giving them the weekend to think on it. No others has inquired because it’s an off market deal (no one looks for those). He’s elder and ready to seek and can’t really work inside the home anymore and the contractor left him.

@Will Barnard

Thanks for your input.  Yes I have an assignment clause - states my company "and assigns".  I go a step further and actually put a clause in the sales contract stating the contract will be assigned.  So, it's full disclosure.  Thanks

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