CONTRACT SIGNED WITH SELLER, NOW WHAT

Bird Dogs, Wholesaling
1

Hi, readers… I have been a reader myself for sometime now and decided to post today… I’m a Newbie in Hollywood, FL and I think I just came across my very first wholesale deal.

Ok, so let me tell you where I am so far.

found a 3/2 home in good structural shape, but in need of mostly updating work!! I want to be able to assign my contract to a rehabber. I will now be marketing it to my buyers list with my fingers crossed to see how serious these guys are.

ARV is 170k
It needs about 25-30k in improvements
I have it under contract for 69k and I want to wholesale it for 75k

Now my questions are, now that I have the contract signed between me and the seller what are my next steps?

Should I file my contract at the courthouse now to cloud the seller from accepting a higher offer?
Should I contact a title company to pull title and start paperwork while I’m still waiting for my buyer or should I wait to have a buyer lined up and let the buyer do this?

Any advice would be helpfull!! Thanks in advance

2

Now that you have it under contact have the seller sign an affidavit of memorandum to lock the property up than start advertising the property to end buyers.

Hopefully you have end buyers already in place if you do than marketing it won’t be much of a problem if not you got to be very aggressive in your marketing campaign to get this house sold.

3

Doesnt a contract automactily lock up the property? Why the "affidavit of memorandum "?

4

If you want the title to be clouded you need to record an memorandum at the county recorders office. Because you don’t record contracts only deeds,memorandums and such you need an affidavit to lock the property.

5

I never get the seller to sign the affidavit, I just sign in front of a notary and file it with the county.

6

Find a buyer fast and assign them the contract. Let your buyer worry about these things.

If the contract period is 2 weeks or less, i would start the title search with friendly title company that knows I will be assigning it to speed up the process. Many do it because of the possible volume of work with you, some don’t until you establish relationships.

The main thing however, is to find a buyer right away. Run a Fixer Upper ad in the paper for few days to find investor buyers who are willing to pay you non-refundable earnest money with the remaining due at closing. Make sure they have access to funds, if not, ask for higher non-refundable earnest money.

That way if they back out, or not what they say they are, you walk away with some cash.

7

I like FADI’s Idea… assign it and get your check and let the end buyer worry about it!!!

First: Do you have a buyer???

If not We can help you out with some idea’s!!!

What do you think fadi, Wanta give a crash course in Wholesaling???
or should we take turns explaining???

8

Thank You guys so much for the responses… This is SUPER helpful… now one more thing I’m concerned about… In florida does anyone know if my seller needs to be present to notorize this affidavit or can I do it myself…