Hey everyone, my question is after i get a contract on a house from a seller and I want to then wholesale it to another investor how exactly does that get executed? Do I write up ANOTHER contract, or do you use the same contract that you already have on the house with the seller and then submit it to title company? For example lets say i get a house under contract for 40k and then want to make 5k wholesaling do i just write up another contract for 45k? I really think I understand everything else about the wholesaling process except for this part. How exactly do i gat my 5k? At closing at the title company or does the invester just cut me a check for 5k? Sorry for the dumb questions, Im just trying to put all the peices together here. Thanks everyone.
Howdy Xjoker25xx:
Usually an assignment agreement is used to assign the contract between you and the owner. You should take the original contract to the title company and get the title process started asap just in case there are title issues that show up. You will be able to handle then sooner or walk away faster. If the stakes are larger than $5K for you then you may want to consider using two Earnest Money contracts and do a double closing.
Most investors you deal with will want to pay you at closing except for the earnest money. Some try to get non refundable earnest money of $1000 per deal to cover their earnest money deposit and have some extra up front.
There are no dumb questions in REI. Do not do a deal without knowing the basics. You do not have to learn it all to get started. Also never assume anything in REI or construction, always double check and ask questions.
Does the wholesaler go to closing when assiging a deal?
I’m trying to get into wholesaling. If I find a deal to assign to another investor, do I go to closing also or does the investor go to closing and they pay me afterwards?