California Contract For Wholesale

Bird Dogs, Wholesaling
1

Hi,

I am in the process of learning how to wholesale real estate. Two weeks into the reading stage and my husband has already offered my services to his co-worker who’s listing is about to expire. The co-worker is willing to lower the price of his home $60,000.00, since he would have been minus that amount if he had sold his home.

My question is this:

Where can I find a valid California contract to be the wholesaler for this deal? What is it called? A Buy Option? Land Contract? etc.

Where does this contract go after signing? To the investor? To the investors escrow company?

Do I ask for a flat $5000, or do some of you ask for a percentage based on the amount of equity?

Remember, I am only two weeks into reading about wholesaling homes. So I am missing alot of small important details. Bare with me, please.

I am also worried about the high prices and how slow the homes are selling in California, so I was wondering if investors are still willing to invest in California, even with $60,000.00 equity built into the deal.

Thank you in advance for any light you can shed or advice.

Lannette

2

Welcome!

What you are looking for is nothing special. You can either use a standard purchase contract, and make it an “assignable” contract, or draft up an option-to-purchase agreement and make the option “assignable”. The key is making it assignable.

You can find these documents online, or at your local office supply stores. Or, befriend a realtor and get a purchase contract from them. You may also try the local board of realtors office. They usually have a store where realtors can buy supplies. The one in my area is open to the public, but the prices are just slightly higher. Then, just tweak to your needs. You may want an attorney to look it over, though, because every state is going to have different idiosyncrasies.

I hope this helps.

3

Thank you!

Yes, that was very helpful.

Lannette

4

Hi, Im new at this real estate, I went a got the contract called California Residentail Purchase Agreement and Joint Escrow Instructions. I want to get a house under contract, so I can assign it. This contract is overwhelming.
Montse

5

Thank you!

I am in Orange County California, so I am finding it hard to see how in the world I will be able to wholesale to an investor, since the prices are so high and people are not letting go of much equity.

I know a few people who are willing to lower the price of their homes between $60,000.00 to $80,000.00. But that’s still not enough to an investor when the homes are between $800,000.00 and $1000,000.00, since investors are interested in the percentage being between 20% and 30% off the market value.

I wish I could help these people I know who want out, but I don’t know what to do for them. The only thing they could do is a Lease Option. But the idea is for both of them to get their money from their equity now, this year, not later.

I wonder if I should advertise for retail buyers, not investors, to buy homes with $60,000.00 to $80,000.00 equity built in. Maybe that would work? I would have no problem finding the properties, just the buyers.

I was even thinking of venturing out to Riverside County, possibly Lake Elsinore, that is, when I learn more about the contracts to get started.

How are you dealing with California?

I’d really like to do investing outside of California, but since I am a new investor, I would really like to see the properties first. Then again, I guess you could just assign a home out of state, ask all the right questions, if it passes, assign it and let the investor take a look.

Any advice or shedding light is greatly appreciated. Just bouncing off ideas!