All Forum Posts by: Matthew J. T.

Double closing is when you plan on hiding what you are making, this method is also more expensive, and also takes longer.. Assigning is the fastest, easiest way to get deals done and you don't have to show up to closing, so ideally depends on your situation, more commonly I'd say people Assign vs Double close, but if you have a awesome deal, go for the double close.

via Ryan Webber :

"Consideration" is required for a contract to be valid. And from the dozen states or so that I have researched in the past, "consideration" can be just a "promise" to buy. An actual earnest money deposit is NOT a requirement of valid consideration or a valid contract.

I believe, but have absolutely no evidence, that this is a national courts interpretation/decision or a generally accepted interpretation of contract law because of how similarly I've seen it phrased in different states.

Not to say that there aren't states that interpret it differently, but the dozen or so I have researched are all the same.

In Texas at the least, I have had this discussion with several very well qualified attorneys, and they all agree that earnest money is NOT required for a valid and enforceable contract in Texas. They won't ever give me any definitiveness on any other states, though.

I personally only put earnest money on deals that are listed with realtors, and that's because any realtor worth their weight in dirt is going to require you to.

https://www.biggerpockets.com/forums/93/topics/4274-assigning-contracts-wholesaling-questions

Thanks Will, I've seen many people do it that way that's why, I've also read " Earnest Money - $1 or $10. Actually this is used for legal consideration, which doesn't have to be money at all. Basic business law says legal contract need 3 things: an offer, an acceptance, and consideration. Consideration is to show you're not getting something (the house) for nothing. Your offer price can be considered consideration IMO." But I will take what you said into consideration.

Matt

lol ok, Sorry about the confusion j.Scott :)

When having the seller sign the contract, I understand that you can put 10$ on it to secure the contract, but if seller asks you why you are putting in so little what do you them? Don't they want to know that you are serious? As I am going to be collecting a deposit from my end by to know he is serious, how is the motivated seller going to know I'm serious off of 10$, and is there any law, or rule that states you must put a certain amount to secure the contract?

Matt

Michael,

You do not need a "licence" to wholesale, I know people that have done a ton of houses that don't have a licence. I don't know where you are getting your information from but I'd disagree.

It's been posted before:

" Since when do you need a license to Wholesale property in California, or any state?

A wholesaler is kind of like a RE Broker, but not really. A wholesaler is buying and then reselling the property. I can buy 500 homes a year, and not need a license. "

" I concur with Tom. I live and work in CA and have wholesaled more than 8 times and I have no RE sales license, nor do I need one. What I do have are entities and trusts which I funnel deals through and I pay my taxes according to the net profits for each entity. For my S Corp, I receive a salary plus I get dividends which are taxed at only 15% as opposed to the marginal tax rate."

http://www.biggerpockets.com/forums/93/topics/63929-how-do-you-file-taxes-as-a-wholesaler-

Matt

Jimmy I am thinking that too, she removed it from my contract, but if it's not in the contract I am concerned though if I find a house , and the seller see's I am marketing it, and they didn't agree for me to market it, couldn't I get in trouble for not following contract terms?

Ok J.Scott so I have thought over this, and let me explain why you are wrong, and how a wholesaler is not acting as a broker.

A broker, is getting paid off of commission to MARKET a property that is ALREADY under contract.

A wholesaler, is getting paid by putting IT in contract by themself, thus allowing the wholesaler to step into the buyers shoes out of equitable interest.

The BIGGEST difference is that brokers do not deal exclusivly with putting houses under CONTRACTS themselves from motivated seller, wholesalers DO. If you were to sign a contract I give you for a car, you are allowing me to take over and be in place of your shoes, as if I am the seller, thus allowing me to MARKET a property under MY name, out of my own equitable interest because once I have somebody under contract, it is a LEGAL binding contract, for me to STEP in to the sellers shoes, and act in their position.

Your thoughts?

Bryan,

How does offer of purchase different from option to purchase?

Which is better to use?

She gave me the clear for everything else, I already have about 5 buyers on my buyers list, also in craigslist there is a place under "services" where they have a real estate section and you can post what you are looking for I posted an ad earlier for 'looking for cash buyers, if interested e-mail me" so either way there is more than one way to skin a cat, I think this guy sums it up good.

http://www.youtube.com/watch?v=Dl2nt6HQruU

as well as this article

http://www.realwholesaling.com/we-buy-houses/realtor-or-wholesaler-whats-the-difference "

As well as people here and all around the nation already doing it, I don't see a problem, I read on threads "why don't brokers like wholesalers" and they all say the same thing, and they've been doing this for years just fine.

BTW i would go to another attorney but I got what I needed accomplished just to verify if I can use my short contract, so I can get the ball rolling, as i said I already have a buyers list and I plan on finding more so it should be an issue, remember "there is always more than one way to skin a cat"