Assignment contracts and credit checks/CD

[Brandon Sexton]

I am very interested in attempting to start in Real Estate Investment. I've been doing a little research and browsing forums here. I had a question in particular that I couldn't find the answer to. If I was trying to do Wholesale investments. Would I need to pass a credit check? Put money down on the contract to agree to pay in (lets say) 90 days. For example I find a home owner selling her house for $35k I approach her with an offer for $35K (after I've done all the calculations and think it's a good deal) would i need to get a line of credit for it even if I'm planning on assigning it over to a cash buyer within that 90 day period?How would i sign the contract with little to no risk if he falls through or I can't find one. Would I need to pass a credit check for a loan before I could even write up a contract? Really looking forward to the information you guys can share,

Thanks in advance!

-Brandon.

[Anthony Davis]

Originally posted by @Brandon Sexton:

I am very interested in attempting to start in Real Estate Investment. I've been doing a little research and browsing forums here. I had a question in particular that I couldn't find the answer to. If I was trying to do Wholesale investments. Would I need to pass a credit check? Put money down on the contract to agree to pay in (lets say) 90 days. For example I find a home owner selling her house for $35k I approach her with an offer for $35K (after I've done all the calculations and think it's a good deal) would i need to get a line of credit for it even if I'm planning on assigning it over to a cash buyer within that 90 day period?How would i sign the contract with little to no risk if he falls through or I can't find one. Would I need to pass a credit check for a loan before I could even write up a contract? Really looking forward to the information you guys can share,

Thanks in advance!

-Brandon.

 Welcome to BP Brandon!

Look around this platform, because the answers to your questions are in the forums here. Many investors start their investing career with the real estate wholesaling strategy; and have asked similar questions.

I know your example is hypothetical. Most FSBO's do not offer their home at the

wholesaling price point. There is a general process to determine an offer price that a wholesaler would make for a given property. Learn those steps, and you will be on your way to completing deals. Connect with people in your target areas who have experience wholesaling. Connect with real estate investors in your target areas who apply the fix/flip strategy, and the buy/hold strategy. Locate landlords in your area, and ask them if they are in the market to purchase additional properties. The landlords will ask, 'why?'. Just let them know that you come across properties below market value all the time, and you would like to know if they would be interested in some of them. You should let everyone know that you are a real estate investor looking to build your network.

Visit the podcasts here. Research wholesaling in forums. It is important to note that you are only looking for information that will help you learn the wholesaling strategy. Opinions are just opinions.

Anthony