I’m a semi-experienced investor looking to add wholesaling to my resume and there are a few questions I’m curious about.
When making an offer on a home should I use a state real estate contract? Or should I find a contract online and make ammendments to reflect my needs? What are some clauses that I should be sure to include in my contract? How much time do you write into the contract to find a buyer (investor)?
After placing a home under contract, how do you handle the issue of investors who want to view the home?
Is it customary to want the buyer (investor) to use your attorney during the closing?
I’m in the process of working up a buyer’s list. How many investors are on your list? (20, 50, 100+, etc…)
Is it possible to wholesale a property that a realtor is currently listing? If yes, how so?
Is there anyway that a wholesale investor can be liable for any damages after a deal has been completed with the sellers and the final buyers (investors)?
Sorry about the many questions. I’m really eager to get started and my head is just full of different things I want answers to.
Is there anyway that a wholesale investor can be liable for any damages after a deal has been completed with the sellers and the final buyers (investors)? -
I assume that you are talking about assigning a contract.
In an assignment of contract the assignor (you) transfers his interest in the contract to a third party, the assignee. In an assignment, the assignee becomes primarily liable under the contract, while the assignor retains secondary liability should the assignee default on the required performance.
When making an offer on a home should I use a state real estate contract? Or should I find a contract online and make ammendments to reflect my needs? What are some clauses that I should be sure to include in my contract? -
The nearest image I have here is of a barefoot person walking through a field known to be full of landmines. The various states have laws and regulations pertaining to the buying and selling of real estate. To somehow think that you can download a contract and add whatever you want to it is a recipe for eventual disaster.
You may want to either get a good real estate agent or an attorney to help you. Reading a few good text books (not the “Get rich quick” books - real text books - check your local community colleges) on your state’s real estate laws may be helpful.
I personally include an addendum to the state contract that allows me access to the property to show contractors, partners, inspectors & other interested parties. This is not to be construed as legal advice. Talk to your attorney about any contract specifics/questions.
Personally, I’ve done a simultaneous closing, rather than an assignment. I haven’t done an assignment yet, but with the simultaneous close, I fell like I’m in control b/c I require earnest $, & I use my Title Company.
I probably have at least 50 people on my list. The more the better. However, you should at least know 2 or 3 personally that can close in cash quickly.
I put in an offer on a property that a realtor is listing. I will either assign it or simultaneous close. Just like any other contract.
You may need to ask your attorney about the last question. My attorney developed some type of addendum provision that covers people not coming after me.