Help with doing a JV wholesale deal

[Corey Huston]

In the process of possibly doing my first deal in which I happen to be the person bringing in a buyer. Right now we're trying to set up a time for the buyer to look at the properties. At what point do I send a JV contract over and what happens after it is signed?

[Ray A Delfi]

@John Thedford are you a licensed broker/realtor? If feel this could quickly turn into another rant against wholesalers, maybe you can be more specific with your response to help out instead of just quickly hijacking a post and shutting them down.

@corey Huston Wholesaling is legal, but this myth persists because a lot of people wholesale illegally. There is a legal and illegal way to do almost everything.

Co-wholesaling is where two investors work together to do a joint-venture wholesale deal. An illegal co-wholesaling deal would be where one investor has the deal and the second investor brings the buyer to the deal, but does not have their real estate license. It is illegal to practice real estate without a license.

Unfortunately, because so many people practice wholesaling illegally it gives wholesalers a bad reputation. If it is done right, and you have an established bilateral contract between you and the seller that stipulates that you are acquiring equitable interest and also need to prove that you have intent to purchase. Then once you have the house under contract with the first seller, you can assign the contract to another investor if you don’t plan on taking the property yourself. It is illegal if you bring the buyer first, do not have a contract in place with the seller, or cannot prove intent to purchase. I’m not in anyway providing you legal advice but to encourage you to do your research. If you are worried about the legality of wholesaling houses you can get your real estate license or you can speak to a realestate attorney and discuss your options if you do find a good deal as a “Sale by owner” or off market property and the property way to assign a contract.