How to properly execute a Wholesale Deal.
Hi. My name is Javon. I’ve recently learned about wholesaling and how it is very beneficial but I don’t know how to properly execute this strategy. After you find a seller and make an offer, how do you write the contract? Im new to this and I really would like to know how to do these things before I get started.
Most Popular Reply
There are a few ways to execute the wholesale deal legally and many more ways to not do it legally. Check the laws in your state and be sure to check with the real estate board, you may likely need a license depending on how you structure the deal.
There are several means to wholesale. You can write a purchase and sales agreement with verbiage that allows you to assign the contract, you can lock it up, close on it with your funds or borrowed funds, then immediately sell it to another cash buyer a day or a few days later, you can lock it up in the name of a newly formed entity or trust, then sell your interests in that entity or trust, etc. Keep in mind that in most states, if you lock a contract, then publicly market that property or contract and expect a fee for it, you are brokering without a license and can face fines or even jail. Do it the right way, learn the ropes, and even get your license.
you should also look more closely at raising funds so you can take down the deal yourself and not rely on having to wholesale it.