Newbie at Wholesaleing

Bird Dogs, Wholesaling
1

I am new at Wholesaleling and have two questions that I would appreciate the answers too. My first question is if use a real estate agent to find and purchase a bank owned property are they involved after I have found a buyer to purchase the property from me? I thought once I had the property under contract I could do a double or simultaneous close, assign the contract etc. But it was at my discretion whether or not to involve the realtor after I had purchased the property. Correct?

Second. Exlpalin the clause regarding the purchaser must have the property up to code after the city inspector inspects it, for which the purchaser must pay? Does this affect me(Wholesaler) in any way since someone else will own it on the date of closing?

Thanks in advance for your help.

2

As a wholesaler if your buying through a Realtor; the Realtor gets the commission from the purchase. When you assign the contract you make whatever the assignment fee is. That’s not the Realtor’s money. As far as anything to do with the property the new buyer you assign your contract to is responsible for anything the contract clauses have in it. He is buying the contract not the house from you.

3

I personally have not heard of a bank that will allow you to assign a contract on an REO. There are ways around it but as far as assigning contract on an REO good luck.

4

Thanks for the info. What are some of the other options besides assigning the contract on an REO property?

5

I’m new to wholesaling but you could double close or both you and the end buyer purchase the property and then for your fee you quit claim off the deed. Herbster

6

you can also use the pocket LLC method by (Example) gettin the house under contract with a throw away LLC then sell the LLC to the buyer for your fee

7

Thanks. Can you give me a more detailed description of how this is done? I guess my question is do you sign the contract under the LLC’s name even though you don’t have one set up? I thought that it was illegal to use a business name if it’s not actually registered.

8

This has been covered here many a time, you just need to go back and look. In short A sells to B(you) under an LLC, B sells the LLC to C and you get the difference. LLC should be set-up ahead of time. This is a double close(simo) You also have to consider the fee for the LLC and the transactional funding if used. C can keep the LLC or remove the house from it. Land Trusts are done this way to. Herbster

9

  1. double close (Requires funds)

  2. simultaneous closing (No fund required from you)

  3. buy in an entity and sell the interests and entity to your end buyer (No fund required from you)

  4. Quit claim (No fund required from you)

Nate-WI