Forms Needed

I was just wondering what contracts I need for a wholesale deal. I know I need a Purchase Contract. Can I use an Option To Purchase Contract for deals? Also, do I need a Proof Of Funds form to complete a wholesale deal? Does ernest money go to the seller or Title Company? Can I use a Promissary Note for that. Do I need an Assignment Contract? Or, can I use a Purchase Contract to assign the original contract?

Hi, just some food for thought. I am a mortgage banker of 16 years. I too love to create deals from scratch and currently I am working on a new angle to do some creative stuff all while staying well within the lenders guidelines, so thereby not getting my self in a bad position.

Here is something that you need to be aware of if you are ever selling to the end buyer from a retail standpoint. FHA, Fannie Mae / Freddie Mac all have flipping rules that prohibit investors and people or entitys that they dont exclude from their flipping rules from flipping a property that they have owned and been on title to less than 90 days.

Beyond 90 days, there are still rules, but it can then be done at that time, however they typically require 2 appraisals, the 2nd of which can not be charged to the buyer, so either the seller, loan officer, realtor must pick up the tab on that appraisal.

Just wanted to give you some info that you may need before you run into this situation. So if your buyer is paying cash, or using a lender other than Fannie / Freddie, FHA then you wont be subject to those rules most likely. There are other ways to get around the 90 day rule, so look me up if you need more info.