Wholesale Contracts Help

[Greg Bellanton]

Good Day Everyone!

I'm seeking information on wholesale contracts - getting the house under contract and assigning that contract to the end buyer. I met with an attorney to review the contracts I have (see attached) and though he didn't outright say they were bad, he didn't approve either. 

The attorney advised that when I have identified a property to wholesale, I should go over the terms and conditions with the seller and buyer beforehand - keeping them separate to protect my own interest. After the terms and conditions of the purchase has been agreed upon, bring them to the attorney's office, where the attorney will write up the contract for a fee of $600.

I would appreciate if the following questions are answered:

1. Is this the best way to go about wholesaling?

2. Is $600 fair for having an attorney write up the wholesale contract? 

(This fee is to be paid by either seller, buyer, or split between both)

3. Does anyone have contracts they would like to share?

Thank you for your time and knowledge.

[Greg Bellanton]

Hey Jeremy!

I'm in Buffalo NY! Thanks for the insight. I'm going to go with option 1 for this potential deal I am working on. 

Does EMD = Earnest Money Deposit? Why would I have the (motivated) seller provide that? Wouldn't that come from the buyer?

The property has about $40k in water bills and back taxes. Does the seller need to pay for that before they can sell the house? Or does the end buyer pick up the bill plus the cost of the property?

I'm going to contact my attorney now and ask if he can review and update my contract, and pay him. I think my attorney's suggestion to bring all parties into the office leaves time for things to go wrong. Compared to having the seller sign a contract on the spot, same for when I meet with the end buyer. At that point, I can bring all parties to the attorney's office.

My first real estate deal is on the horizon.