Purchasing Contract

[Milton Patterson]

Hello members of Bigger Pockets! I am new to this site and group, but have always read information on wholesaling from this site. Well now I am a member and now I have my potential first deal, but I am stuck on a couple of issues. My company is presently set up in Nashville, TN, but because I am originally from Chicago I have scoured the area for good deals to embark on. I know the City and surrounding areas very well, and just thought I could invest in both cities. Well, I have a potential deal for a 3 flat in Chicago which has been rehabbed beautifully, and in a decent Northwest side part of the city. With an ARV of 195,000 and a asking price of 165,600. My question is what type of purchase contract do I use? State of Illinois because the property is there, or State of Tennessee? I know dumb question, but I'm new bare with me please. Next question I have a cash buyer who will spend 150,000 with 30-40 percent return on his investment. I want to assign this contract to him for 5-6000, where in the contract do I say this is an assignment? Do I tell the seller my plans? Are there any wholesaling tips any of you can help with for future deals? Thanks in advance.

FieldHousePropertiesNow.

[Joe Santiago]

You only need 2 pieces of paper.

1. The standard purchase agreement that states that the contract is assignable. You can find generic ones online if you google it. Goes to seller.

2. Assignment contract stating that you are assigning your rights of the purchase agreement to your buyer for an assignment fee.

Its up to you whether you want to explain the process of what wholesaling is to a seller. I know many wholesalors say that they are cash buyers themselves and they will be buying it but I have a hard time morally saying that.

I usually am honest and say that I have a partner that will be the one buying it because he has the money and I will get a fee from him.

You must chose a title company yourself. Make sure that the title company is experienced and knows how to do an assignment and has done them before. Once you get the purchased agreement signed, at your wholesale price, give to title company. Then have your buyer sign the assignment and give to title company and they handle all the work.