Can you wholesale without a sales contract. i have the information on a deal that is worth large numbers for a potential buyer. However, i am not in a position to go under contract for this property. i have several investors that are interested in the owners contact information. Do i just hand it over? Is there any way if they go through with the agreement of sale, that I could earn a profit?
thank you!! very new to this!!!
Well the investors could give you a finders fee IF they close the deal, but you would need that in writing for it to be inforced…
I personally would get the house under a option contract, then sell the option to the investor. If you do not control the property the investors could negotiate behind your back leaving you with nothing. Do not give out this info unless you can secure some type of profit.
A option contract is similiar to a purchase contract, but you are not obligated to buy, you have the “option” to buy by whatever date you and th seller agree on. If you can’t sell the option to an investor, you can exercise the right not to buy.
excellent!! Thank you…
where would i find an example of an option contract? Would it be in the whitney software?
http://www.floridacdc.org/forms/form28.html is a good example, I would suggest you talk to a local attorney before using any contracts you get offline.
Also , I am new to this all also, So my opinions or suggestion are only from what I have read and learned from this site, just letting you know.
avalon910
if you are not a party to the contract, i.e. contract as buyer and then either close or assign, your only other way to make money legally is to be a licensed agent for the buyer or seller. you can then legally receive a commission or fee. this debate is not new, and take the advise only as you choose, but check the laws in your state related to your state’s Real Estate Commission.
Hello,
In a wholesale deal, you and the seller sign a Purchase and Sale Agreement (PSA) for a set price and by a set date. If you do not sell it by that date, you are out nothing unless you put down a deposit (earnest money).
Then, in order to wholesale, you assign that contract to your investor/buyer for a higher, agreed-upon sum of money. You never actually own the house, you simply own the contract. Do your title search to be certain that the property is truly free of encumbrances.
The suggestions also given regarding legal advice and state laws regarding Real Estate Commissions are excellent.
In terms of a contract, find a lawyer who can help you. It is better to spend a small amount of money up front and get it right, than to leave out something crucial and get sued later.
Best of luck with your deals.
Deb mz