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Dec 28

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REAL ESTATE INVESTING… WHOLESALING ANOTHER WHOLESALER’S DEAL!

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Wholesaling is really the art of creativity. There are so many ways to make money in wholesaling but some things require more creativity than others. Wholesaling is all about contracts. If you have the right contracts in place at the right time you can wholesale any property from any seller to any buyer…. it’s that simple. Wholesalers are in essence ” Contract Geniuses” !  A great Wholesaler can come up with and edit any contract to meet the needs of a particular deal.

Let’s face it we specialize in getting around certain guidelines and stipulations in order to get paid. If we are honest with ourselves this is really what we are good at…. putting the right contracts in the right places to get paid.

Everyone knows how to wholesale a property from a seller to a buyer and get paid in the middle. You can either Assign the contract or double close the deal if it’s an REO or short sale. But what about wholesaling another wholesaler’s wholesale deal? What if you had a buyer for a deal that you knew another Wholesaler had under contract? Your not going to connect the two for free or at least I hope not. Wholesaling another Wholesaler’s deal is something that I call “whotailing” as you are tailing behind another Wholesaler’s wholesale deal.

To do this you must make sure you have the proper contracts in place.

If you are simply assigning another deal over to your buyer that a Wholesaler has under contract with a seller you will need to put that property under an “Option Agreement” with the other Wholesaler and then have an Assignment contract in place with your buyer.

PURCHASE AGREEMENT BETWEEN OTHER WHOLESALER AND SELLER

OPTION AGREEMENT BETWEEN YOU AND WHOLESALER THAT INCLUDES OTHER WHOLESALER”S FEE

ASSIGNMENT CONTRACT BETWEEN YOU AND BUYER THAT INCLUDES YOUR FEE AND OPTION AMOUNT.

You can either submit all of these contracts to the Title Company or put the other Wholesaler’s fee on the Assignment contract along with your fee and you and the wholesaler endorse the contract with the buyer. Then you would only need the Purchase Agreement and the Assignment Contract at closing. It will all depend on what the Title Company will allow as far as contracts.

What if the property is an REO and needs to double close?

PURCHASE AGREEMENT BETWEEN SELLER AND OTHER WHOLESALER

This transaction would close first.

PURCHASE AGREEMENT BETWEEN YOU AND OTHER WHOLESALER THAT INCLUDES OTHER WHOLESALER”S FEE

ASSIGNMENT CONTRACT BETWEEN YOU AND BUYER THAT INCLUDES YOUR FEE

Now this deal closes and you get paid… aka, double close. You cannot assign the first transaction since it is an REO or Short Sale but you can assign the second transaction since the bank is no longer in the deal.

So it does not matter what type of property you are wholesaling to your buyer. With the right contracts in place you can get paid every time.

To Your Success,
Carol Stinson

About the author

cstinson

Carol Stinson is a Real Estate Mentor, Author and Entrepreneur who continues to thrive in today's real estate market. Her concept of success is to never stop learning new techniques and then put what you learn into action expecting results. She is dedicated to helping others succeed by sharing what works in today's real estate market. Her strategies are effective, her techniques work and she is always updating them to conform to the ever changing real estate market.

Carol's biggest passion is people! Her love for others and dedication to help them succeed is genuine and ongoing. She created Real Wholesaling in an effort to help others find their way to financial freedom through real estate.

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