Hi everyone,
I would like to know if when wholesaling if you MUST purchase, take title then re-sell, or if you can just put under sales contract with owner, then assign to another investor, taking a $5K profit or so (without taking title). That’s the way I thought it works, but I just read somewhere that is called Net Listing Broker activity and is illegal! Maybe it is just illegal if you are a broker? I am not a broker. I just want to wholesale properties. P.S. I live in Chicago area.
Any help would be appreciated! Thanks!
???
You should check the local laws in your area to be sure… but assigning should be ok.
rule of thum is that if the assignment fee is small … 7k-30k (in your market the numbers may be different)… then assign…
but if you are making a huge amount of money . i would close and then resell to investor as insurance policty that nothing happens to the deal… ie the seller gets wind that you are assigning and now wants more money or not close at all.
also … i find that if an investor knows you are making a big number… especially on assignment … its hard to swallow for them… vs if you have already closed and thus now are the owner…
the only issue with closing is that it creates a chain of title issue with the end investor that is rehabbing and selling to end user…