All Forum Posts by: Dawson Hunt

There was a topic from a few years back regarding wholesaling subject-to deals, although I still have questions. It seems from what I read there that you wholesale a subject-to as you would any other type of wholesale deal; however, if the end buyer is assuming the remainder of the seller's mortgage, is the remainder the amount that is written on the Purchase and Sale agreement? That is, if the seller owes $65,000 on the house, would the purchase price on a Purchase and Sales agreement just be $65,000? But then if the end buyer pays off the seller's mortgage at closing, then why does it seem that you would need to be extra explicit that the end buyer is assuming the terms of the seller's mortgage if they are only paying off what's left right then and there? Any other tips on the subject would be appreciated.

In wholesaling, when you put the house under contract with the seller, do you need to deliver that Purchase and Sales Agreement to the title company at that point? Or do you deliver the A-B PSA to the title company at the close after you find an end buyer?

In wholesaling, if a real estate agent gives you a lead on a house and you end up putting it under contract and successfully assigning it to an end buyer, is it legal to give the real estate agent a percentage of the assignment fee? Or would that be considered bribery or some other illegal form of compensation? Thanks

Hello!

I am just starting out on my Real Estate Investing journey and am looking to get a start in Wholesaling. I have been learning a lot through online sources, but one area that I am still unsure of is how much detail a Purchase and Sales Agreement needs to have when entering into a contract with a motivated seller. I have seen examples of PSAs that are one page long, and I've seen other PSAs that are 11 pages long and require a degree in Legalese to read. My questions are, what are some general recommendations when it comes to choosing a PSA to use? Is it required to use a PSA that has been approved by a realty or legal organization? On the other hand, is it permissible (or even recommended) to write up my own PSA? Thank you for any advice and recommendations.