Hi everyone I need help my first wholesale deal

Hi iam from NYC i found a 1family for 350k it needs about 25k to fix it up, the comps came in about 525k. I found a buyer for it for 390k who will fix it up him self. I need help what do i do next.What contract do i sign with the seller and buyer.
Any advice will help

I honestly think you should pass this deal and learn more…I know you probably read “JUST DO IT” etc a lot, but I think you would benefit much more when you know more about wholesaling and REI in general. Why not pass this deal, get a few books like I did and read them completely through, then you will at least know what contract you need and whatnot.

To answer your question, you need an agreement of sale. Where you obtain this is obviously your decision…some people make their own, others buy them, and others get a lawyer to draft one up, and others use a realtors agreement.

Hey, s108m2002

Pass on 40k - Never!!! Get yourself locked in a contract with the seller of the house with the right to assign the property over to your end buyer. You can find this form for free at http://www.buyincomeproperties.com/FreeRealEstateForms.htm
They will also have an assignment contract for you and your end-buyer on this site. Once you have the agreement of sale between you and the seller with the right to assign, just use the assignment contract to grant the right to buy to your end buyer for the 40k difference.

40k is a great score for your first deal. Anymore questions just IM me.

Full Circle…with respect, you just asked a very basic question the other day about what form you need to use (assignment of real estate) to get a profit, and now you are telling this person to do it from the information you just asked for.

I HIGHLY believe that a free internet form should NOT be used. I didnt believe there was a difference until I found out last week my best friend IS BEING SUED by a person that he was entering a deal with, because of a FAULTY CONTRACT. Definitely opened my eyes.

You dont even need a separate assignment contract, you can have it in you regular contract.

Anyways, you expressed your opinion, and and I did mine, and I agree that 40k is an excellent deal, but I would wait until the pros on reiclub comment on the situation.

I can’t think of any reason to pass on 40K when all that needs to be done is to figure out the paperwork.

Again, listen closely: anytime you are doing a deal that involves a big chunk of other people’s money, and there is even a remote possibility that you could get sued, you want to have your documents prepared by a lawyer.

You are going to make 40k. You can afford to spend $300 to have a lawyer draw up contracts that are legal for your locality.

Notice I said “legal for your llocality”? That’s because real estate law is different in every state, and sometimes it differs from town to town. That is why generic forms for free off the Internet can not be one-size-fits-all.

One more thing: Once you have a lawyer draw up documents for you, you can use those over again for any deal that is going to go the same way, because you KNOW they are legal in your locality. So the cost of getting contracts written for you is really very very small.

Once the lawyer draws the contracts up, you can fill in the blanks on the next deal and al you have to pay for is to have the lawyer glance over them and approve them. he already knows the documents are legal becasue he drew them up himself.

Another benerfit: that gets you a lawyer who is already commited to working with you. So when you say" talk to my lawyer", you actually have a lawyer whose name you can give them.

Thank you all for your advice and i think the best thing to do like you said is contect my lawyer.


 GET THE DEAL Done. Contact your lawyer or whatever you have to do, but get it done. 

The advice that Full Circle gave you was just fine. No matter if he just learned that or not, it’s what you need to do.

Make sure you have an exit strategy though. Look just get a Real Estate Purchase Contract with the Seller and put "and/or assigns after your name. Then put a contingency in there, such as: Subject To finding a buyer or Subject to Partner’s approval. The reason you need to do this, is in case the buyer falls through. Then you can either look for another buyer or terminate the contract with the seller, and tell him that your partner/buyer did not approve, for whatever reason. You don’t get any profit, but your off the hook.

If the buyer is ready to buy, get the contract signed and Get your $40K!

Missjen also gave you some good advice when suggesting that you get some books and educate your self. This is always important, but you don’t want to get caught in the information overload :shocked phase. Basically where your just reading reading reading and never taking action.

You have an end buyer, so just do the deal. If you pass this up, then you’ll most likely pass the up the next one. Don’t let that mistake happen.

My mentor always says, “You don’t have to get it right, you just have to get it going.”

Took me a while to swallow that concept, but once I did, I saw more results.

Thank you all for your advice, but the deal turnd totally diffrent direction. What happend was i contected my lawyer and he adviced me to get the realtor involved, but i did not wanto share my deal so i was looking for other options. I came a cross a friend who found out about this deal and called his invester who gave his offer for 370k i told him i’ll think about it and i talked to the owner and brought the owner down to 330k. The owner has signed the contract for 330 and the invester will give me 40k for finders fee. So at the end I HAVE CLOSED MY FIRST DEAL IN WHOLESALING. Thank YOU all for beang helpfull (for a new comer this means alot when someone out there wanto help and not drawn you). :biggrin

Congratulations! Amazing score for your first deal!