Re: Wholesaling question… - Posted by SCook85
Posted by SCook85 on January 16, 2001 at 20:01:09:
Yes you would want to put the homes under contract and then assign your contract to your new buyer. Depending upon where you are getting your inventory, this isn’t always that easy. Most REO’s today require that you sign an addendum, and it that addendum it states that your contract is non-assignable. And banks have been reluctant to accept offers with this clause crossed out.
If you are dealing with private parties, there is no need to put in the contract that you have a right to assign it. If your contract mentions nothing about assignability then it is assignable.
Seasoning is not an issue with wholesaling unless your buyer intends to get bank financing. Many investors do want to go this route. I always ask my potential buyers how they intend to pay for the homes. If they say a bank, I tell them that we most likely will not be able to do the deal.
I hope this helps.