Looking for the name of a term

[Katie Douglas]

Hello!

I'm new to the forums for this website, but I've been a lurker for a while. I've been researching ways to become involved in real estate investing, and I have forgotten the term for one of the strategies. What is the term used to describe when a real estate investor finds a property and enters into a contract with the seller with a possible purchase price, but the buyer has time to decide if they want to purchase the property? I think usually the buyer then flips the property to another buyer for more money, but keeps the difference?

Thank you!

[Jim Viens]

It sounds like you're describing the strategy of wholesaling. You contract with a seller to purchase at a certain price, then line up a buyer for a slightly higher price. You then either use transactional funding to purchase the house and on the same day you close that purchase you close the sale to your buyer...OR...you simply assign the purchase contract you signed with the seller to your buyer with an "assignment fee" added in that you collect when your buyer closes with your seller. Just as @Jared K. mentioned above...the period between when you contract to purchase and when you close is commonly referred to as the "inspection period".