Does this really work?
Tying up a PA and then assign it to somebody else for a little fee?
yes…it is called wholesaling.
Not only does it work, but it’s one of the best places to get started in real estate investing. You’ll learn very quickly if what you think is a good deal is really a good deal by investor standards.
i see…
i guess i tried to do a deal like that before on a house with a tax asseseed value in a Golf Community at 549k. the house also had a 25k tax lien that needed to be paid. I offered 425k everything paid and they accepted it. now, i had an investor lined up ready to buy at 530k …BUT the guy i had negotiating for me (my first wholesale) was being a stubborn bastard and ended up haveing the guy at 540k but then the investor couldnt close on time at date agreed and my “guy” didnt want to sell the house to the investor no more. All in all, nobody closed on it and now the bank owns it. This was all during the owners redemption period.
So I HAD a potential huge profit but somebody was TOO GREEDY…
thanks for all the info on thisd site. ;D
Just as an aside. If you have a signed contract to buy the house at whatever price…they seller cannot go behind you and sign another contract during that time. You can sue for damages (not that it is necessarily worth your effort to do so, but you can do it).
Great answers to this post! This is something I have been curious about myself. I have a follow-up question to the originally posted question. What if you wrote a PA with intensions of tying up the property to “wholesale” it but then cant get any takers. Can you then break that PA with out ramifications, or are you stuck purchasing that property?
You can always break the agreement and forfeit the earnest money you put down.