I’ve been thinking of implementing this approach. Can you sign a purchase contract with you end-buyer prior to you closing with the seller? Can you get the buyer’s deposit BEFORE you close with the seller?
You can sign a contract witht the end buyer before you take title but there are a few things for you to consider.
Most contracts stipulate that you already own the property. Thus you may want to simply do an assignment of contract. This process allows you to simply assign the contract rights that you have with your seller to your potential buyer. You can charge an assignment fee for doing this and that becomes your profit. These forms can be easily accessed through this site or by contacting your local closing attorney ar title company.
If you do not want to do an assignment then you can simply write in the stipulations section of the contract that you are signing with your potential buyer how you are structuring the deal. Total disclosure is important especially when you are just getting started in real estate.
And yes, you can get the buyers deposit before closing with the seller.
Hopefully this helps…and good luck!