Posted by tampasteph on July 15, 2008 at 21:02:03:
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New to Wholesaling - Posted by JedB
Posted by JedB on July 14, 2008 at 11:26:26:
Hi, I’m new to RE Wholesaling and could use some advice. My game plan was to begin finding some wholesale deals while building a buyers list. Then once I locked in a deal, I would market the property in the 30 day inspection window that my contract provides. Once I found a buyer I would assign the contract for a fee and let the end buyer close.
I found what appears to be a solid wholesale deal. I negotiated a price $125k price on $240K ARV. Property needs very little work. The problem is that the seller (an out of state corporation) added an addendum to the agreement restricting my right to assign the contract. Since this is my first flip, I didn’t want to actually close on the property and possibly end up having to hold it. What are my options at this point. Is my deal dead?
Thanks,
JedB
Re: New to Wholesaling - Posted by thutch fl
Posted by thutch fl on July 15, 2008 at 06:13:08:
Depending on your state rules one solution is taking title in a land trust.
Write the contract from a land contract with someone you trust as the trustee, then just sell the beneficial interest to the land trust.
This may be a solution for you. Contact a title or escrow agent in your area to see if this can be done.
Re: New to Wholesaling - Posted by IB (NJ)
Posted by IB (NJ) on July 14, 2008 at 15:37:16:
You can also do a double or simultaneous closing.
Re: New to Wholesaling - Posted by Fred
Posted by Fred on July 14, 2008 at 12:36:35:
No deal is dead as long as it’s stuctured properly and makes you money at the end. Maybe you can’t assign the contract, but you can still fix it up a little and sell it. Or you can always give it to another inverstor and collect a finders fee.
not as easy as it sounds today - Posted by steve
Posted by steve on July 15, 2008 at 07:51:05:
double or simultaneous closings are difficult today.
Best bet is probably line up hard money/short term to close first transaction, then close to end buyer.
good luck
It is if… - Posted by IB (NJ)
Posted by IB (NJ) on July 15, 2008 at 13:53:55:
you’re using all cash. At least it is in NJ.
Re: It is if… - Posted by steve
Posted by steve on July 15, 2008 at 17:09:04:
yea, cash to close the first buy and then second buyer pay however
Re: It is if… - Posted by IB (NJ)
Posted by IB (NJ) on July 15, 2008 at 19:01:52:
No. I’m still doing double closings here where I don’t have to bring any cash to the table. I get to use the end buyer’s cash.
Ib