1.) I have heard that you do not need to put “and/or assigns” on the contract with the seller because all contrancts are assignable (specifically the TREC single- four family residence) unless it says that it is not. Is this correct?
- TREC - for those outside of Texas - stands for Texas Real Estate Commission. I’ve heard the same thing (contracts are already assignable), but this may be a state-specific law. I’d go ahead and add it to CYA.
2.) Does the wholeseller (me) need to order and pay for a title report on the property or do I leave that to the person I am assigning the contract to?
- It depends. If you sign the contract with the seller with the full intention of assigning the contract, I’d say no - let the investor who is closing do that work. He/She will probably have it done anyway.
3.) I am trying to get an accurate list of costs involved with wholeselling, from my calculations, I would need to pay for (and correct me if I’m wrong) attorney consultation fees, the earnest money deposit to the seller, inspection fees, title work(?). Is all this right or can some costs be omitted?
Again, it depends. And, again, if your intentions are to put a property under contract and then turn around and assign it, you shouldn’t have to pay for anything (except maybe the EM deposit).
4.) Is the “Dealinator” an accurate source for comps?
Pray tell, I’ve never heard of this “Dealinator”. Unfortunately, Texas is a non-disclosure state, which means comps are almost impossible to get - even on those web sites that offer them for a fee. About the only four good ways to get comps (in Texas, anyway) are (1) a professional appraiser, (2) real estate agent, (3) knowing your market like the back of your hand, and (4) a combination of the previous three.
5.) What information do investor/rehabbers like to have on the home other than the price, costs of repairs and comps?
This is really specific to the property and the investor you want to assign the contract to. For instance, is it an SFR, multi, or commerical property? Does your investor only want 1-story SFR’s built before 1995 that are 65% ARV? It really depends. I’m sure most would want to know upfront what ballpark profit they can make, if there are any leins/encumberances on the property, and the overall condition of the property at the least.