I live in California,
What forms/contracts are used for Wholesaling from start to finish?
A purchase contract with the homeowner and an assignment contract for $X with your investor/buyer and you’re out of the loop and on to the next deal.
Thanks gccre!
Is that all there really is to it? I heard about illegal ways to wholesale, and being careful how the contract is done. I heard that it had something to do with assignments, any clarifications on the matter?
well im also new in REI and working on my first wholesale deal. It would legal if you misuse the contracts. You can also use a sales contract for the buyer and get the difference of the selling price and buying price. Good Luck!
There is illegal ways to do everything if you think about it.
In wholesaling all you want to do is tie up a contract with a homeowner for 30 days with an “johnjugarap and or assigns” in the buyer space on the contract and at least $1 deposit to make it legal which gives you 30 days to find a buyer to flip your contract to.
Always leave yourself an escape clause with the homeowner contract in case your financing falls thru, or your buyer (make sure he can show you proof of funds so he can close in 30 days. You don’t want some buyer have to go through the conventional mortgage route and 60-90 days later the deal goes through) can’t fulfill his obligation and leaves you holding the bag on the 29th day. If thats the case you better have an escape clause or be prepared to buy the property yourself.
A great wholesaling site is www.flippinghomes.com and Steve Cook. Anything and everything you want answered about wholesaling is freely available there as well and its a great educational tool to utilize if you choose to go this route. Read thru the archives and find answers to all your questions and if you can’t find it there you can post it and some investor will answer it for you.