First Time Buyer of a Wholesaler Property

[Rodney Turner]

Hello,

I am an experienced investor who has acquired off-market properties, but now I have an opportunity to buy from a wholesaler. They have asked me to submit a standard offer contract, which I just sent to them, but I am not clear on who actually signs it as a binding contract. I would think that the owner would sign it in order to be binding, but that would cut out the wholesaler. Also, there is obviously an existing contract between the seller and the wholesaler, which I understand that the wholesaler would assign to me, but I don't know what instrument I would use to establish my purchase price, closing date, earnest money, etc.

What am I missing here? Any advice is appreciated! 

[Rene Owczarski]

@Rodney Turner Typically the Seller and Wholesaler sign a purchase agreement, and that purchase agreement includes an assignment clause, allowing the buyer to assign their interest in the contract. And then you and the wholesaler sign an Assignment of Contract/Assignment of Purchase Agreement, so that the wholesaler can transfer their interest in the contract to you.

Or they might be doing a double close, if the wholesale fee is really juicy on this one, and the wholesaler doesn't want the seller to see how big their assignment fee to you is.