cat,
I think the following article will answer most of your questions.
No, it’s not illegal to sell a contract. You can get an assignment fee from selling the contract and collect up front or at closing, depending on the arrangement. Conversely, you can do a double close at a title company as an alternative.
http://www.texasrealestateclub.com/articles/cook/9stepswholesale.html
Good hunting…
You can also earn a fee by creating and executing an option agreement. In an option you get the seller of a house to agree to sell it to you for one price, and get a buyer to agree to buy it for a higher price; your fee is the difference between the two… It works similiar to an assignment of contract.
How do you get paid the difference? Through a promissory note or something of the like? Who pays the difference the seller or a title company/attorney?
What documents do you need to accomplish a wholesale? What if you cannot find a buyer, are you obligated to buy the property?
Use an option contract; this gives you the OPTION to buy for a certain amount of time…not the right. Therefore if you can not locate a buyer, your option will simply run out and nothing will happen.
and then simply use and assign contract right?
Yes and No everything is depending upon the deal. The most important part is having control of the seller. I only use a Contract never an Option. It’s not good to drop options every where in hopes of closing a deal. Build your buyers list first. Start from the end and work your way back things will be easier.
Any set of contracts will work, it’s all in the special stips you and the seller agree to within the contracts.