Hard Money Bankers - Wholesaling and Assignments Explained

Wholesaling is a funny thing in real estate investing. Some people learn about it before they know anything else and others have been in the business a very long time and don't know anything about it. I thought I would give a simple explanation as to what it is. Wholesaling is more commonly done with an assignment of contract. This is a clause in the agreement of sale that allows the buyer to assign the rights of the contract to someone else. The buyer then usually assigns the the rights to purchase the house to another investor who physically closes on the deal with their money. The person assigning usually builds in a spread between the initial acquisition price and the end assignment price. Recently there have been laws that have changed in regards to assignments so before 'wholesaling' a property, I suggest you look into them.

Ian Walsh

215.839.3271

[email protected]

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