new to wholesaling

[Matthieu Daigneault]

Ok so basically I went to this rich that seminar on Thursday and get introduced to the world of real estate investing. My credit is bad and according to my wallet ... I,m not even close to by a house. I'm looking into that wholesaling thing and it seems really interesting however it generates a lot of questions: DId I understand?Tell me if I am wrong: first you make a contract with a seller(but what is that contract about? having the exclusivity on a property, fixing a cost such as when your making an offer to buy a house)
then you make a contract with a investor stating that you are charging him an assignment fee.
and finally I close the deal.
second question: How do I make this legally in my part of the world (Québec, Canada) without paying a fortune in lawyer/notary.
Third is there a way I can possibly see a sample wholesaling contract?

[Ned Carey]

Matthieu,

The concept is simple but it is real work to do it.

Yes you have the basic concept correct. You write a contract to buy a house. The hard part is the price has to be REALLY good. You then Sell that contract (assign) to another investor for a modest profit.

Ex: A house is worth $100K. You are a great negotiator and you get it under contract for $60K. You then assign (sell) your contract to another buyer, usually another investor with cash for perhaps $75K. The seller gets the $60K you negotiated, Your end buyer gets a great deal at $75K and you get the difference, %15K.

The devil is in the details. It is much harder than they led you to believe at the seminar. If you wan to learn more of the details keep reading here and asking questions.

PS: Welcome to Bigger Pockets. There may be samples of contracts in the resources area.