If you don’t live in a major city, you can always find landlords and sign exclusive right to rent contracts to keep their units occupied. This is handled by property managers most of the time, but as a trained sales professional, you have a great value add.
Although most investors regard wholesaling as involving less risk than, for example, the flipper who is rehabbing and selling the property, there are always risks in any transaction, and so the purpose of this article is to identify some of the common legal issues to look out for in your wholesale deals. This article is not designed to teach you the strategies for being a successful wholesaler, such as how to find properties, how to approaching homeowners, etc., but instead, focuses on some of the legal aspects of wholesaling that investors should be aware.
Evictions Do you need an Real estate license to be an investor in any capacity? Be great today, When you’re doing no rehab or other work on a home you’re flipping, wholesaling is a term many use. You’re locating a deep discount deal that has enough difference between what you’ll pay to buy/control it and what your buyer will pay for it to allow you some profit in the middle. Your value in this type of deal is purely in your ability to locate and lock up properties your buyers either can’t find or do not want to spend the time and effort to find.
Fantastic list, Brandon! Thanks for sharing! Pavel says: That’s correct Brian (and if you sign up for the email list, you can get a $30 discount code – don’t forget to do that)!
30.) Cash Purchase, Sell on Contract – If you have the cash, you can buy properties and then immediately re-sell them to buyers who may not be able to conventionally qualify for a mortgage. You can carry the mortgage for as long as you’d like, or sell the note for cash in the future. Make sure to collect a large down payment when using this method.
5 out of 5 Promoted by LendingHome Well, Realtors understand real estate, they get the paperwork AND they cultivate buyers. (huge)
I have a buyer that has agreed to a $56K price and is ready to sign the assignment contract as well but where do I document the $11K assignment fee? Should that also be included in the assignment contract?
Celine Crotty May 22, 2015 Realtor/Investor Who Are The Top 1% Income Earners? (239) Real Estate Ebooks Is there a particular script anyone uses when making an offer and negoiating with a seller? Please post it here for me!
Answered Jan 2 2017 · Author has 180 answers and 1m answer views What is the Effect on Wholesale (Assignment) Transactions?
P Christina Shackleton on May 16, 2016 4:08 am Now you are probably thinking – “so how does a wholesale investor make money?” When the wholesaler assigns his or her contract over to the end buyer, they are given an assignment fee (similar to a finder’s fee), which is usually a small percentage of the property’s value.
There are a few exceptions, for example a divorce in which one party sells the property under market value to spite the other party. I expect the number of ignorance cases far outnumber the exception cases.
Great suggestions! I’ve never heard of that strategy. It’s something I’ll have to look more into! DownloadAndroidSpotify Finally, in most regions house prices move cyclically. That means that the area experiences highs and lows in value that change over a span of years and are not based on extreme economic shifts. Follow the old maxim: buy low sell high. Don't expect to make a profit in six months, property investment is a mid to semi long process. Unless you are a skilled trades person who can buy distressed properties, put in the sweat equity and flip for a profit
So basically we’re wholesaling properties to ourselves and paying for them after we fix, list and sell the property through an agent.
Wholesale Real Estate Option to Purchase 1 (888) 480-6617 March 2011 (3)
Investment property purchases had 20 percent down, where the owner occupant purchases had 5 percent down. There should be an increase cash flow on the investment property purchases, because of the lower down payment, but I left them the same to make the math easier.
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