i have a question about, wholesaling properties.
when you find a motivated saller, who wants to sale his home, once you as the wholesaler put it under contract find a buyer ( investor or rehaber) the next step is to have the buyer sign an assignment contract, once that is done, do you physically turn both contracts, the one the saller signed and the assignment contract to a title company, who will then hold the contracts entell closing occur, Please help me out on this one.
Yes, that is correct.
You bring the purchase contract along with the assignment agreement to the title company, and they take it from there.
It’s always a good idea to stay in touch with the title company as well as your buyer and the seller, just to make sure everything is running smoothly…
Steph :cool
Yes, kind of.
When you assign the contract to your buyers you are essentially out of the loop, because you sign over all contractual time lines and obligations to the buyer. If you collect your fee at the time of assignment then you could in theory just leave the deal alone.
If you are being paid at closing then you will want to really focus on helping the deal along as much as possible, because in this case you won’t get paid unless the deal closes. This would be in the case of back to back closings as well.
In both cases you are not responsible to provide title work, the buyer is, but you may want to lead them to a title company that knows “wholesaling”.
good luck
SIGNING A CONTRACT
you are correct.
Make sure you have an attorney behind the title company that sincerely understands wholesaling.
Sign a limited power of attorney so they (title agent) can sign for you…and then stay away from that closing table.
Make sure you get a significant deposit up front from the buyer so they will not try to abandon the deal if there is something they do not like.
Hope this helps,
Matt Gerchow
Currently In S. America for 4-Months…Next Stop…Thailand for 6-Months