We buy ugly houses guy from Florida

[Clark Lunt]

I started buying rentals post college as passive income.  I started looking into the Homevestors franchise and now own two 8 months into the business (Tampa & Pensacola).  I've started off focusing on wholesaling to build funds quicker with lower risk.  I'm just looking to meet like minded individuals that want to swing for the fences!

[Frank W Clark]

DISCLAIMER/WARNING: I am not an attorney, so research contract law in your own state for yourself.

In Florida, there is nothing illegal about assigning a contract. As a wholesaler, that is exactly what you are doing: assigning a contract. YOU ARE NOT BUYING OR FLIPPING THE PROPERTY. You are simply adding an escape clause next to your printed name as the buyer on the contract that reads: "and/or assigns."

You never actually buy the property. That specific escape clause allows you to legally assign any RE sales contract to any buyer: your rehab investor, your rich aunt, or your partner/business associate. Anywhere in the US.

Buying a real property and reselling it is a real estate transaction, which is regulated by the real estate laws of your particular state. The other is a contract assign transaction, which is totally different and is governed by contract law.

As a wholesaler, you would be wise to include another escape clause: "Purchase subject to [ qualifier ], the qualifier being either "Buyer obtaining financing" or "Buyer Inspections." Either will allow you to void the purchase contract and remove yourself from the deal should you not be able to find a buyer within the time limits imposed by the contract.