Dealing with listed properties

I have a few questions about wholesaling listed properies.

  1. can i use the same contract as normal? assignment/ option
  2. Will the realtor be willing todealwith the option contract?
  3. How does the process work? Do i need earnest money down?

The problem you will have is getting the seller to work with you after the seller has hired a Realtor. You might want to throw a few dollars the sellers way to get them to allow assignment that way it show the seller you are real about moving their property.

I like the fact that you throw them a little extra money. I usually stay away from listed homes, some realtors are nasty. :argue lol. But there are ways around everything. You just have to have in writing permission form the seller.

Most state real estate forms don’t allow assignment so you will need your own addendum to add to the contract. Check your local forms and make sure you are allowed to add a assignable addendum otherwise just do a double closing with transactional funding.

You will absolutely have to use the standard board of realtors contract. They won’t let you use anything else. You will have to put up $1000 earnest money check usually within 48 to 72 hours, $500 earnest money check if it’s a HUD home less than $50,000. If it’s more than $50,000 then HUD requires $1000, but you also have some HUDs that require 1 percent of list price.

You can do an option but it doesn’t really work the same way it does in the FSBO world. They may give you at best maybe a 7 day option for due dilligence but most people don’t really bother with options on reo properties.

If you’re dealing in bank owned and HUD homes they don’t allow assignments, but you can do a double closing if you wish

You can also used transactional funding.

also if dealing with HUD they have a add buyer for financing on the contract and you can add your buyer then when you close deed yourself off for the fee… :biggrin