I’ve been buying rentals and flipping for a few years. I want to try my hand at wholesaling and am curious about a few things. Let’s assume the following, since this is what I plan to do:
1.Looking at REO properties
2.Cash investor(client) 3.Non-circumvent agreement AND clearly stated fee agreement
Why can I not just put the contract under the investors name instead of doing a double-closing or trying to assign it? On REOs, my understanding is that there are no assignments.
Why not just outline and agree to a fee with my buyer, then draw up an invoice or agreement to give to the title company. Then get paid at closing.
This is only for cash buyers. Any insight? The negatives I see is that the buyer could tell a friend about the deal that isn’t bound by the agreements. I don’t have a RE license, but work very closely with one since I’ve been doing it for a few years.
Nothing in my eyes; that’s why I’m trying to figure out how to structure something exactly like this. The only thing I would say is make sure you put the house under an option before doing anything else…the option gives you an equitable interest in the property and allows you to legally market without acting as an agent. Let me know if you figure something out…I’d say talk to your attorney, I’m sure they can come up with something.
The only one of these that will work for REO’s is #1 the rest only for direct to seller deals. I personally would never trust a cash buyer to pay me I make sure I close first then sell to the end buyer. Find a title co that will use buyer funds to close between you and bank. If not use a 1 day loan company.
Go to about the 7 minute mark and it talks about a “reverse assignment”. I have a property I can get for 100k and have someone to buy for 110k. Create a 10k note secured by a second deed of trust on the property and get paid at closing by the title/escrow company. Hope this helps a little.