All Forum Posts by: Brittany Smeek

@Jerryll Noorden Every business you go into there will be scammers someway or another!

You also brought in a good tip; Gather investors first and then go look for houses! 

Although, how would you still approach it? Would you tell them you'll "think about it for a few days" and show your investors who are willing to buy? or would you sign the contract and then show your investors? Which in that case you could run the risk of NO ONE wanting to buy. What to do in that scenario? How can you back out if you did sign?

@Jason D.

@Brian Pulaski

Thank you for your answers. Yes, the $10 sounded a little ridiculous to me and I didn't understand it, I thought maybe any amount was needed for a 'deposit' for you to own the property after you sign a contract. 

Just trying to clear things up on how to approach wholesaling & how to correctly handle the situations where you cannot find a buyer. 

@Jason D. That is exactly what I was thinking about. What would be the best scenario to handle a wholesale transaction? To talk to the house owner that you could buy it for "x" amount (maybe go there and get pictures / check for damages) and tell them you'll reach back to them in a few days. In those few days you find an investor who is willing to buy. If he agrees, that is when you go on with the contract? Therefore, they give you example 5 days to "think" about it.

@Sebastian Lee So basically telling them sorry I couldn't go on with the deal? Or is there a better way of approaching this, tell them youll close within 7 days but not writing a contract, and once you FIND a buyer you then write the assignment contract with them both and close?

@Anthony Gayden 

I've heard some people leave a $10 deposit for the contract incase of breach? 

Also, it would be better to actually have a list of potential buyers to show them the house once you get it correct? 

I am trying to run through the whole process of wholesaling but need a clear answer since I keep finding different ones.

Bianca is about to lose her house to the bank. She reaches out to Tom for a potential buy.

Tom researches her house and finds that her area is $150k - House is in good shape.

He offers Bianca $100k to buy the house. They sign an Assignment Contract stating that Tom can buy or may have the right to sell his contract to another buyer. (correct?)

Bianca gives him 21 days to close.

A) Now, lets say Tom does not find another investor to buy within the 21 days, is he OBLIGATED to buy the house for $100k now? or can he walk away empty?

B) Tom has found a an investor and offered him $125k for the house. He brings his contract to the closing attorney (correct?) and they handle the transaction leaving Tom with a profit of $25k?