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Updated almost 8 years ago, 02/15/2017
Wholesaling Process If You Represent Yourself
Hello BP'ers,
Wholesaling is something that I've considered in the past but up until recently, I never gave it a whole lot of thought as I was focused on acquiring properties to hold. However, I am in a position where I have limited capital and have found a couple off market deals that check out numbers wise and will produce a hefty profit, I just can't get funding for them. So my question is this, if I'm representing myself, how would I go about submitting a purchase offer to the seller? And what other documents are required? I assume a quit claim deed but are there any other necessary documents in NYS that I should be aware of?
My end goal here would be to assign the contract to another buyer.
Here are some basics of a real estate purchase and wholesale process:
1. Get a good deal under contract with an assignable clause in your purchase and sale agreement.
2. Market the deal to your buyers.
3. Assign the purchase contract to your end buyer for a fee through an assignment contract.
4. Send the assignment contract and purchase contract to your preferred title company or closing attorney.
5. Go to the closing and collect your assignment fee.
You will submit an offer to the seller with your lawyer approved purchase and sale contract. If you are dealing with a home owner this can be submitted to them personally. If there is realtor involved on their side then you will have to submit the offer to their realtor.
@Paul Amegatcher Understood.
And if I do not have a lawyer approved purchase and sale agreement or an assignment contract then I need to get them from one correct? I cannot use one the I created myself or even use ones from this site in the fileplace?
When you're wholesaling, do you not need to get a quit claim deed from the seller? I understand that a warranty deed will be given at closing to the end buyer, but when would a quit claim deed come into play if not when you're wholesaling?
Originally posted by @Account Closed:
@Paul Amegatcher Understood.
And if I do not have a lawyer approved purchase and sale agreement or an assignment contract then I need to get them from one correct? I cannot use one the I created myself or even use ones from this site in the fileplace?
When you're wholesaling, do you not need to get a quit claim deed from the seller? I understand that a warranty deed will be given at closing to the end buyer, but when would a quit claim deed come into play if not when you're wholesaling?
I'm not sure why you think you need a quit claim deed to wholesale. The buyer receives a deed at closing. It can be a quit claim deed or a general warranty deed. As a wholesaler the only thing you are marketing is a contract on a good deal. You do not need a deed to do that. You should study more about the basics of a real estate deal before moving forward. There is some confusion on your end about the anatomy of a wholesale deal.
@Paul Amegatcher This has been one area of real estate that has often times confused me. I can see that something isn't clicking for me so I'll return to educating myself on it more before moving forward with any deal. I appreciate the feedback.
Originally posted by @Account Closed:
@Paul Amegatcher This has been one area of real estate that has often times confused me. I can see that something isn't clicking for me so I'll return to educating myself on it more before moving forward with any deal. I appreciate the feedback.
Call me if you would like to discuss wholesaling further. Im available 930am-5pm EST.