Wholesale

[Kurt Schmid]

I just want to make sure I completely understand the concept of wholesale real estate. Please respond if I need correction.

You negotiate a deal with the owner of a property to buy it at a discount. You sign a contract with this person. Is this a normal contract, the same as you would sign if you were buying any other piece of real estate through an agent? Is there a special contract used when you wholesale?

You then turn around and sell the property to a real estate investor for more than your purchase price but still at a discount to the value of the property if fixed up. I know there are two ways to do this, one is to assign the contract you signed with the homeowner to the investor. Again, what kind of contract is this and where might I find a sample? The other way is to close on the property yourself and then sell it to your investor. Ideally the closings would happen nearly at the same time. If you do end up closing on the property yourself before you resell it, do you need to have financing in place? Even though you won't actually need it because you sell it right away?

If I have missed or gotten any steps wrong please correct me. Thanks. I am just starting out and I'm trying to learn as much as I can about real estate investing before I get started. Ideally I am looking for someone in my area to speak with and possibly mentor me for a short time. Does anyone live in the SF Bay Area who might be interested?