Using "And / or Assigns" vs. just "or assigns"

[Matthew Srnka]

Hi All,

I'm located in Appleton, WI, which for those unfamiliar with Wisconsin is in the Fox Cities, about 30 minutes south of Green Bay, WI.

I am looking for clarity on several things, for I've been wanting to get my ducks in a row before taking any risks wholesaling in Wisconsin (if you're interested where - mostly in the Fox Cities to start). I'm mainly interested in selling to fix & flippers, but I'm also learning how to run numbers for the cash flow / long term real estate investor.

First, the difference between using "and/or assigns" vs "or assigns" in the offer to purchase. What are the technical reasons for using one or the other? When should either be used, and why?

Second, using an option to purchase in a wholesale deal. Why not just get an offer to purchase notarized instead? Plus, can options be assignable?

Third, does anyone ever have a title company open what's known as a "Hold Open Title" instead of actually going through a double close to avoid showing up on title (and avoid paying capital gains tax) and then also only paying one set of escrow fees?

Fourth, if we are assigning an offer to an end buyer, should a wholesaler be using a second offer to purchase, but signed by the buyer? I'm hung up on using an assignability contract, because as far as I'm aware, there isn't one used by real estate agents in Wisconsin. 

Fifth, how do we get paid out at the title company? How do we show up? Using a single escrow, does the title company make the two contracts (two offers, or an offer and assignability contract) into one contract, and then do we show up as a loan being paid off on the seller's side of the HUD?

I just want to know what I should expect to happen, and what should happen.

Please help. Thanks!

Matt

[Beka Shea]

I just need to jump in here because WOW!  This is supposed to be a forum for learning and most of these answers were angry or belittling.  C'mon guys, we are not angry trolls.  @Matthew Srnka, what did you end up doing?  I both wholesale and rehab, I've done over 50 rehabs and 100 deals in the past 3 years, and I've bought in Florida and PA using "and/or assigns". The key is that, yes, you should have the intent and the capability to buy the deal.  But that doesn't mean you have to.  When I get a property under contract, I made sure it's a great deal so that if I don't find another investor buyer, I'd be stupid not to go out and find the money to do it myself.  And also, just because you are wholesaling doesn't mean you have to lie to anyone.  We are super upfront with our sellers and say something along the lines of "Does this price work for you?  Great.  I'm either going to do the rehab with my crew and resell it, keep it as a rental, or partner with another investor to get this done.  Regardless, you're going to get what we promised you."  I haven't had any issues, and I make sure to reiterate that conversation throughout the contract period so that there are no surprises.   (Now, caveat - very rarely we do have to go back and renegotiate if we find something massive like the septic fails inspection or something.)  I'm not going to go into all the specifics of how we work but I just wanted to let you know that you're on the right course.  And coming here to ask for help is a good first step.