Real Estate Wholesaling Questions & Answers

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Mahmoud Y. Elhalawany
  • Real Estate Consultant
  • Raleigh-Durham NC
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Is it advisable to wholesale land using assignments?

Mahmoud Y. Elhalawany
  • Real Estate Consultant
  • Raleigh-Durham NC
Posted Dec 5 2019, 14:35

Hey everyone, I am a wholesaler from NC, it is completely legal in my state, my partner and I have closed deals using assignments. My question is would it be advisable to get an 18 acre parcel of land under contract and then assign it over to a developer? Our contracts state 30 days or less, and I understand that many people who develop land have a lot of issues on thier end to deal with before ever purchasing land, for this reason the land sits and is harder to move than a typical piece of real estate. Would you advise outright purchasing the land and then reselling it at a later date? We only ever do assignments, but I know that it takes quite a while to sell land (less interested parties, lots of legal, strategic, zoning issues on the devs end). What have your experiences been with wholesaling land? 

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Greg Dickerson
  • Developer
  • Charlottesville, VA
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Greg Dickerson
  • Developer
  • Charlottesville, VA
Replied Dec 5 2019, 18:25
Originally posted by @Mahmoud Y. Elhalawany:

Hey everyone, I am a wholesaler from NC, it is completely legal in my state, my partner and I have closed deals using assignments. My question is would it be advisable to get an 18 acre parcel of land under contract and then assign it over to a developer? Our contracts state 30 days or less, and I understand that many people who develop land have a lot of issues on thier end to deal with before ever purchasing land, for this reason the land sits and is harder to move than a typical piece of real estate. Would you advise outright purchasing the land and then reselling it at a later date? We only ever do assignments, but I know that it takes quite a while to sell land (less interested parties, lots of legal, strategic, zoning issues on the devs end). What have your experiences been with wholesaling land? 

You are correct wholesaling development land is difficult and takes way more time as a developer will want to take the land through the entitlement process before closing unless it’s a really competitive market  and highly sought after piece of property.

If it’s cheap you could try to flip to an investor or hold onto it until you can find a developer willing to take though the entitlement process.

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128
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Mahmoud Y. Elhalawany
  • Real Estate Consultant
  • Raleigh-Durham NC
31
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128
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Mahmoud Y. Elhalawany
  • Real Estate Consultant
  • Raleigh-Durham NC
Replied Dec 5 2019, 21:41

Yeah that's what I was thinking too, hold it and then sell it at a later date if the the seller is willing to come down on price a little. Thanks so much Greg!