Today while go’n to look at a vacant board’d up duplex, to my surprise there was a rehab crew working in it…the owner of the property jus happen to be onsite as well. I introduce myself as a wholesaler who frequently finds property 50-60 cents on the dollar. He immediately ask’s if I have anything available…I got excited cause I jus found a new buyer. I tell him no… not at this time, but take his info and ask’s what he’s look’n for. As I’m leaving…he mentions to me that he’s interested in a property located a few blocks away…tells me that the realtor hasn’t been returning his calls. He gives me the address and tells me it’s listed for $38K. I go check it out…sure nuff, it has a realtor’s sign in the front yard. I’d like to make an offer on this property for $30K…assign it to him for $35K, save’n him $3K. I make 5 he saves 3…how sweet right. Question----“How do I go about do’n this…and what paperwork or forms do I need to have on hand.” Help from wholesalers who have actually wholesale’d property this way would be greatly appreciated. Please…spell out everything for me, I wanna do this right the first time.
Did he tell you he was willing to pay full price for this property? Because you just got finished telling him that you get properties for 50 cents on the dollar. He may be thinking he’d buy it if you could get it for him for 18K.
If he’s willing to pay the full 38K, the listing agent, or someone in the listing office, or his own buyer’s agent would have made sure he got an offer in on that property.
Most fixer type investors won’t pay $35k for a property that has been sitting unsold on the market for $38K
The property is already discount’d and has’nt been on the market for very long (5 bd/ 2 bth)…not bad looking investment property I might add. He’s already willing to pay the asking price for it. I’m pretty sure if he was able to make an offer on it for less then the asking price, the offer could get accepted. I’d like to beat him to the punch…tie up the property and wholesale it to him for a few thousand cheaper.
First of all, the Realtor will probably ask for a $500 or $1,000 earnest money deposit (EMD). Do you have it?
Then, they probably won’t allow you to assign the contract. Do you know know how to get around that? One way is to do a double close. Do you know how to do that? Do you know how to get the funds to fund the first part of the deal?
If you don’t know the answers to the above, I suggest you spend a lot of time reviewing what REIClub.com has to offer, as well as learn what you can from books, audio files, etc.
Wow! Everyone's say'n everything except answering my question here. But to answer yours, yes...I kno I'm gonna need earnest money for listed properties and yes I do have that. I kno these types of deals are not assignable...but can be closed with some creative deal making such as add to contract/quit claim, simul closing, true double close using flash funding, and the selling of an LLC. I have done my homework, read post, more post, books, been studing like crazy for months now. There are pros and cons to each of these methods...i wanna kno which is the best way. What i'm looking for here is someone who has actually closed a deal of this kind who can walk me threw it the right way...give me some insite. But thanks for your comment. Sounds like your saying I should add an addendum to the origional contract making it assignable...use flash funding for my end of the deal then go ahead with the flip to my end buyer.
You’ve received answers to your question. Just because you don’t like the answers doesn’t mean they aren’t valid answers.
You will have to have your lawyer draw up all the contracts that you need, so that they are specific to the laws and the courts of the town and the state you are working in.
Falk, you’re original question, “how do I go about doing this…and the paperwork”, made it look like you knew absolutely nothing and wanted more experienced investors to give you every step for a deal that’s not as easy as others. I actually see a lot of newbies with no knowledge of how to do the deal they’re working on ask for detailed instructions. This happens on this site and other similar ones.
If you had read everything you said you did, you probably wouldn’t have asked the question you did. You should read the foreclosures, short sales forum, because these deal with Realtors and their forms and double closings, etc. You’ll learn a lot.
Thanx DemosL...I'll do jus that, read up on the foreclosure and short sale forums. I have yet to wholesale a property thats represented by a realtor...I want'd to kno if anyone had any idea's for the best way i should go about it.