Is it possible to wholesale a property without buying it?

Question

The method goes like this: Find a run down property> skip trace to contact owner> offer to buy but really you're getting them to sign a contract> advertise the property EX: Craigslist> then offer the property to another investor 5k to 10k more than what you offered the owner and thus that would be your profit. Now my questions:

1. Is such a thing possible?

2. If so, what kind of contact is used to initiate the process?

If you do this or have done this before please share your knowledge! I want to hear your stories.

-Frank Reyna, 17

Frank Reyna · Answer

Thanks to all for the shared knowledge and advice!

Eli Gilbert · Answer

Hey Frank, way to go at 17 man!!!!

As others are saying, you actually want to "buy" the contract and then assign that contract to and end cash buyer!

If you do not actually sign the contract, that would be brokering real estate without a license which is Illegal in most states if not all...

If you have any questions or want to discuss, feel free to reach out.

Eli

Anthony Dadlani · Answer

@Frank Reyna

Another option if you’re not able to assign the contract in a timely manner, find a cash buyer that will partner with you to close on the property and wholesale out 30 to 60 days later to another buyer.

Best of luck in all your endeavors.

Jim Pellerin · Answer

You aren't buying the house. You are making an offer to buy it conditional on finding financing acceptable to the buyer (you). Then you assign the contract to a cash buyer that's going to fix and flip it or fix and rent it. Not your concern.

Jerryll Noorden · Answer

You do not want to offer it "to buy" when you have no intention of buying it. This inherently is dishonest right?

Lucky for you, there is NO NEED to offer to buy without buying it. Flat out tell the seller you plan to wholesale it. When we present it more than 70% of the time they will chose for us to wholesale it vs us buying it in cash.

And no you can't wholesale a property without "buying" it. This is a tricky answer but try to see it this way..

when you are going to wholesale is, the back -end buyer will put up the money. So the Lawyer in facts needs permission from that buyer to use his money to close "for you" using his money after which the house will close again this time under the back-end buyers name.

So that is why they call it a double close.

Now mind you .. I may very well be wrong. I let my lawyer handle all this and that was quite long ago. But this i show I understand it from what my lawyer told me.

As for contracts, you need an assignable purchase and sales agreement between you and the seller, and then you need a assignment contract between your buyer and yourself.