Wholesale Contract Questions

[Jumaani Cooper]

Ive spent alot of time reading and researching how wholesaling works and i am approaching cking the point where i am ready to start do-ing rather than just reading. However there is one concept i am not to sure on, and that is the contracts used in wholesale deals. At first i thought there was just 1 contract you use and you take that, have it signed by a seller, then have your cash buyer sign it as an assignee, however after lookin Ive found that multiple contracts are used. What is the purpose of each of the contracts used when your wholesaling a property? Is it best to have it made by a local real estate attorney? What clauses are important to include? Thank you so much for your help and time.

[Louis Davis]

@Jumaani Cooper Don't let things like contracts stop you from taking action. To answer your question, the traditional wholesale deal will have an assignable purchase contract between you and the seller with an agreed price. Then you will have an assignment contract for you and your buyer which will have your fee and the total price. You then send both contracts into the escrow/title company for execution. 

As far as clauses, the main thing you want to focus on is due-diligence period and close of escrow. Make sure to give yourself enough time to find a buyer.