What happens after an offer is accepted by a seller from an investor? Is it the same as any other closing and contract? Is the person who makes the offer the middle man “bird dog” person who is then backed by an LLC? If you sign an offer is it a done deal for closing or awaiting funds?
Here’s one way it can work if I’m not keeping it myself:
-Buyer & Seller signs option agreement (I like option better than purchase agreement. Seller is aware up front I’m not closing unless my investors want the deal and you don’t have to remember to cancel a purchase agreement)
-Submit option agreement to title company to begin title work (I’ve closed many deals with them so they are ok if I don’t have an end buyer yet)
-Market property to investors
-Require proof of funds for new investors you’ve not worked with
-Sign purchase agreement with investor (my title company will close back to back deals using the end-buyers funds as long as that is disclosed in closing docs)
-Investor typically pays earnest money check to title company
-Submit purchase agreement and earnest money check to title company
-Title company prepares closing documents
-All parties sign/close on the purchase and resell of the property
-Seller receives their check from title company
-Receive your check from title company
Where can I find trustable tips about this procedure? A blog, a page, a forum or a mentor? I don’t know much about it at all.
You could try the following site. It discusses all areas of Real Estate investment. :beer
I think you need to define what you want to do. Are you saying you want to wholesale the property or actually close on it and pay a bird dog who found it?
Each state I would assume varies too, and depends on the contract type. For example, in Arizona a buyer could back out during inspection (like most states). Companies like Opendoor use standard purchase contracts and it closes like a normal transaction - but the investor buys a hold-open title insurance policy to save on closing costs. Other than that its very similar to many transactions.
Funny! That made me chuckle.
Based on your question it sounds like you have never bought a property before. I’d recommend finding a mentor of some kind in your area that can help you through the process. You could try going to your local REIA or talking with local real estate agents.
Family Home Buyers
Everything you could possibly want to know about real estate investing is on the internet. You can you tube everything. You want to learn wholesaling? It’s on there, step by step and free!
To answer simply: An option to assign in your contract would give you the ability to close yourself or assign and collect an assignment fee.
However, each situation is unique in different states. I would advise as others stated, search REIclub.com or consider joining a local REIA. A local REIA member may be willing to mentor you.
This is my exact process as well