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Category: Need Advice Current Grade: A- Total Views: 278 Member Comments: 2 |
Posted on: 08/16/2009 Posted by: SeedSlinger Blog Points: 35 View all blogs >> |
I have been listening to podcasts, reading blogs watching videos and all that stuff and they mostly are pushing wholesaling and getting the contract on the home. Than you find the end buyer; whether that is the investor, home owner, whatever. No one has talked about what happens after those two things are done. Do you let the investor speak with the seller? Do you pick the closing office? Do you give the contract to the courthouse and let the title work find it? This is a BIG step in the process that ON ONE is talking about. It's confusing at best. I know they have to get together so the buyer can look at the home and inspect it and all that, are you involved in that process and all that junk, or do you just get them to make an offer on buying the house and than get them in touch with each other? I don't know. Seems to me that they have to at some point, so how do you go about doing that?
You made a good observation. It is an area that is left out on many trainings. My advice to you are as follows:
1. Do not undermine your services. You as a wholesaler do provide a valuable service.
2. Build your buyer list. This will help you prevent the potential snitches that come and get the information from you and try to go direct to the seller and get you out of the deal. It does happens.
3. Have a good real estate attorney in your power team. Deals can go bad do to poorly written contracts. A good local RE Attorney will be able to draft you good solid purchase and assignment of contract documents.
With that said, Brian is right you are acting first as the buyer. Once you lock the deal with a purchase contract, now you become the seller. If you have your buyers' list, you market the property to your clients. Otherwise, you develop a marketing plan to make it available to investors, rehabbers, etc.
Once you have a qualified buyer, they will be asking for information on the property for them to make their due diligence. This is normal and reasonable. You could protect yourself with a NCND, and then you release your preliminary information. At this point is where you run the risk that your buyer may try to cut you out of the deal. I think that if you are dealing with reputable people they recognize that you do provide a valuable service and will respect/honor the contracts. There is no contract that will protect you against a thief
.
Bottom-line, work with a good local attorney
to protect your interest in the transaction and with quality people 
.
Wholesale Real Estate Investing
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I do not do wholesales, I buy apartments. But I'll try to help here. From what I understand, you need to wear two different hats here. One hat is you are buying the deal. So you need to have a local real estate attorney do the title search to make sure the title is free and clear of any defects. On this end of the stick YOU are the BUYER and need to to do due diligience to make sure you can close the deal.
The other hat you are wearing as the SELLER. The perception here is that YOU own the house and are selling it to the end buyer, whoever they are. I don't think you should have those two ends of the stick ever meet. You may be percieved as the middleman jacking up the price to make a profit. Well. of course you need to make a profit. Why else would you do this?
Once all of the ducks are in a row, work with your attorney to have the back-to-back closings scheduled one after the other on the same day if possible. You meet with the seller first, do the closing to obtain the title, then right after that closing, you are now the seller and have the closing with your new buyer. You should do all of this at the attorney's office. Make sure you are working with a good local real estate attorney you trust that understands what you are trying to do. This will be critical to structing this type of deal.
Good luck and happy hunting.
-b