Wholesale Help Newbie Here

Bird Dogs, Wholesaling
1

Greetings, Here is the situation.
I am working with REOs, but I am not putting the houses under contract. I am simply finding a great REO deal and finding a buyer. I have a buyer, but I am not sure what to title the Contract. I can’t call it an assignment contract for 2 reasons: 1. I can’t assign something I don’t have interest in. and 2. I am not allowed to assign REO property.
I got the buyer to agree to pay me a fee should he close the deal with the REO realtor. He is willing to sign a contract.

Should I title the contract Real Estate Consulting and Research Fee Agreement? Or should I title it Wholesale agreement?

Is it really wholesaling if I have not put the house under contract in my own name to turn around and put an end buyer under contract to purchase it? Some people are saying that you don’t want to be accused of being a broker and operation without a realtor’s license.

And how will this be printed up on the HUD?

How should the contract be titled? Thanks in advance.

2

You can’t assign REO contracts, but you should be able to use a double-escrow to accomplish the same thing.

Find a title company familiar with doing double escrows, and you’ll be gold.

In a nutshell, you’re funding and closing on the the first escrow, using the proceeds from the second escrow.

It’s really a simple thing, but not every title company is familiar with this type of closing strategy.

Google “how to do double escrows with reo properties” and you’ll find a LOT of resources on how to do this successfully.

Hope that helps.

3

If you are going to double escrow, it is absolutely critical to find a title company that will handle that for you and then make sure that they are the company used for the closing. You need to figure this out even before you submit an offer. Once you have a title company to work along with you, then go make all the offers you can handle.

4

Hi @Campbellsimon!

Quick question:
:help
At what point do you let your realtor know that you plan to do a double close (double escrow)? Do you find realtors ever have issues with investors who are doing this? Any advice would be great.

Thanks.
JJ

5

I highly recommend that when ever you decide to take the time and energy to find a cash buyer for any deals you have some type of equivalent interest in the property. I’ve done this once and found a buyer for a house that was not under contract and I know that I should have done so, and guess what, the buyer and seller did the deal with out me because they both found out that they would have a few more dollars in their pockets if they did so. :flush Never even mention a home to a buyer unless its already under contract. A lesson learned. :beer

6

Great response Delondon

7

Do not tell the buyer or any realtor that you are doing a double close. The do not need to know. Often they do not understand wholesaling and they think you are stealing their business without a license - which you are not.

What you do with a property 30 seconds after your name is on the title is absolutely none of the seller’s or their agents business. Their deal is finished. They walk out but you stay seated. That is the last they know. Once they leave, in walks your end buyer. Everyone is happy.