All Forum Posts by: Larry N.

Hi, I was wondering what would be the best method to sell your wholesale deal to your end-buyer. I was thinking, if you have an option to purchase contract on a property with a wholesaler and once you get and end-buyer ready to buy, then you can either assign the option to purchase to the end-buyer or get a purchase and sales agreement (PSA) signed with the wholesaler and then assign the (PSA) to your end-buyer or get the wholesaler to assign the deal to you and you then assign the deal to your end-buyer.

I was thinking of getting the PSA with a clause to pay the $2500 EMD in 5 days and then assign it to my end-buyer.

Any thoughts on the best method to work these type deals?

Thanks.

Hey I was wondering, If one is using a flex option agreement to allow the wholesaler to continue to market their property and for you to gain equitable interest in the property to be able to market the property to your end-buyers, then how does one close out the deal once your end-buyer wants to buy the property?

Would you sign and assignment with the wholesaler then assign that agreement to your end-buyer? Or sign a PSA with the wholesaler and then assign that agreement to your end-buyer? Or would you sign a JV agreement with the wholesaler and then let the wholesaler sign an assignment to the end-buyer?

What would be the best way to structure and close the deal?

Thanks!

@Jonathan Bueno Hi Jonathan, the "sellers" that you mentioned are wholesalers that are selling. These are not mom and pop homeowners selling. The wholesalers in this area generally require $2,500 or $3,500 EMD to sign the agreement and take the property off the market. A lot of people suggest networking and working with other wholesalers to partner with them to wholesale their deals or to sell your deals. I have rehabbers and cash buyers that need good deals but I've noticed a lot of these wholesalers have over inflated priced properties. Yes, with the non-exclusive option their property is not taken off the market therefore not requiring a large EMD. Thanks.

@Chris Piper Hi Chris, I was trying to get the property under contract so that I would have legal equitable interest to market and assign the deal to my cash end-buyer. These are wholesale deals that can be bought for 50% to 60% of ARV and are cash only deals, which is no problem for my cash buyers. I was wondering could I put something in the contract like "$2,500 EMD is due upon Buyer and Buyer's representative acceptance and approval of the inspection and purchase." So that after my cash buyer inspects the property and approves the purchase, I'll assign the contract to him for my fee and then he will be responsible for the purchase and the EMD? Thanks for your help.

Hi, It's been said that one can do wholesaling with little to no money.  Most all sellers want either $2,500 or $3,500 refundable earnest money deposit before they will sign an agreement to sell their wholesale property. 

Then how can one get an agreement signed with seller if one does not have the $2,500 or $3,500 cash available?

So how can one be able to do a wholesale deal and get a legal equitable interest in the property without a written agreement to be able to market or assign the deal to an end-buyer?  Thanks!

@Jay Walcott Hi Jay...I was wondering are you finding wholesalers that will agree to work with you to do these type deals? Don't you need some sort of written agreement for you to have equitable interest to be able to legally market the property and help to protect your interest? Many wholesalers seem reluctant to sign an agreement if they know that you will assign or wholesale to another end-buyer and they also want a $2,500 non-refundable EMD if they sign with you. How do you get the wholesaler to agree on a split of the assignment fee? I was trying to get some incite to see how others get the 10HW system to work for them. Thanks.

@Andy Luick You mentioned partnering with a wholesaler and then market for real deals & properties. How do you go about doing that? A lot of wholesalers won't work with other wholesalers. Thanks

@Rich Hupper @Ted Akers Hi, this question is in regard to wholesaling and assigning where you write a contract with the seller and then assign the deal to an end-buyer....So can the seller tell you that they will only sell to you if you are the one buying the property and not you wholesaling the deal? Thanks.

@Michael Smith Seems that if you have the property under contract and have equitable interest to market the property, you can file a Memorandum of Contract or Memorandum of Equitable Interest at the Court House to protect your interest. You may also have a non compete / non circumvent statement in the agreement with the Seller to clearly spell out what is expected of the Seller.

You also want to get some non-refundable money up front when the Buyer signs with you.

@Account ClosedI was wondering besides using something like a Memorandum of Notice of Contract filed in the Courthouse, couldn't you also use a non compete/non circumvent clause in the agreement to clearly spell out what is expected from the Seller? Something that says if the Seller violates the agreement and circumvents the introducing party (You) and inappropriately engages the contacts for the purpose of doing business with them directly (cutting out the introducing party), then that party is subject to a monetary penalty of $xxx. 

And you can also get a non refundable EMD up front when you sign with end-buyer