All Forum Posts by: Max N

@Roy N. @Duncan Taylor

Right, I think integrity can drive a business.
I which case I guess having the option limits you to an upper boundry of how much you can charge to sell the option.

I guess I'll have to work out a strategy to value an assignment enough that wont deter a buyer.

and @Roy N

@Roy N. undefined

All,

thanks for responses that actually added value to the topic. Roy, thanks for clearing that up and Duncan thanks for the example.

I'd considered options, which seem to be the best route.

BUT, whats to stop Buyer then waiting out the 30 days to avoid the assignment/ finders fee of the option to buy?

My biggest fear (which I note is one of the reasons people NEVER get into Real Estate, despite swearing that they will try it) is that I will get stung by the eventual buyer,

I suppose that is a risk I will probably have to take? unless anyone has experience of options trading/ contracts that can limit my exposure?

Thanks again.

Therefore should a deal fall through, I would then be liable to pay for the contract of the house.

If I am unable to raise capital to purchase the house, would I then be able to sell the right to buy the house before any transaction has taken place

IE

Seller -> Me (I agree to buy and or assign) [I am holding the liability]

How can a wholesaler agree to buy a property if they cant raise finance? (IE at what point does money have to change hands)

additionally, can I then sell this agreement to buy (in the form of an assignment)
before transferring money to the initial seller, and then use the money Ive raised to pay the initial seller?

Because if a wholesaler buy/sells holding the liability for moments, they will still be liable for taxes (ie. Stamp duty...etc)

Thanks for your response,

in regards to:
1) What is to stop the buyer/seller agreeing to a separate price cutting out the middle man?

Ethics. There is always the risk of having someone steal your deal, but it will be the last time--I would assume--that you'd work with them, and they will do few deals with others in your area if this is the way they work. We have to work together, to some degree, in our areas. Don't sweat it, but be watchful. Ask others who they like to work with.

Is there a legal way to protect myself against this, I honestly cant see why someone would pay more than they needed to.

Fine, I've actually been looking into contingent contracts,

What then happens if you connect a buyer and seller - whats to stop them negotiating behind my back?

All,

I was looking for some light on the contract between the seller and the wholesaler.

My understanding is that you agree to purchase or assign the contract for the house from the seller.

Well isn't there the risk that you may never find a buyer and then legal obliged to purchase the property?

Thanks,

Max

Hi All,

By way of introduction, my name is Max, and I'm currently studying an Economics degree at University in the UK. I've spent the past few month doing some research on Real Estate, and property investments, and have concluded that Wholesaling (at this point) is the easiest/ less risky way of raising finance before making an investment.

My first question is: Is wholesaling an option in the UK or are the laws different from the US? From my research it seems that wholesaling is fairly common in the states, but I can't seem to find many articles/videos from UK RE wholesalers. And as a follow up, am I correct in my understanding that wholesaling is essentially acting as a Property broker or Estate agent?

Next, I was hoping to receive clarification that my understanding of wholesaling is correct.

1) Find a motivated seller and agree to a selling price (preferably below market value) e.g 100,000 (where avg price in location is 150k)

2) Find a buyer and propose a price e.g 120,000

3) Take finders fee/assignment fee of £20,000 as profit

If this is so here are my questions:

1) What is to stop the buyer/seller agreeing to a separate price cutting out the middle man?

2) What if the buyer wants to visit the property? how would you prevent a negotiation

Additionally, can someone please explain to me

a) The contract between the seller and the broker

b) The broker and the Buyer

As my understanding is that the broker signs a contract saying he will buy/assign the contract from the seller. In which case, isn't there a potential risk if the deal falls through (e.g the broker has agreed to purchase the property)

Is the finders fee specified in the buyers contract?

Thanks, I look forward to your responses.

Kind regards,

Max

Hi All,

By way of introduction, my name is Max, and I'm currently studying an Economics degree at University in the UK. I've spent the past few month doing some research on Real Estate, and property investments, and have concluded that Wholesaling (at this point) is the easiest/ less risky way of raising finance before making an investment.

My first question is: Is wholesaling an option in the UK or are the laws different from the US? From my research it seems that wholesaling is fairly common in the states, but I can't seem to find many articles/videos from UK RE wholesalers. And as a follow up, am I correct in my understanding that wholesaling is essentially acting as a Property broker or Estate agent?

Next, I was hoping to receive clarification that my understanding of wholesaling is correct.

1) Find a motivated seller and agree to a selling price (preferably below market value) e.g 100,000 (where avg price in location is 150k)

2) Find a buyer and propose a price e.g 120,000

3) Take finders fee/assignment fee of £20,000 as profit

If this is so here are my questions:

1) What is to stop the buyer/seller agreeing to a separate price cutting out the middle man?

2) What if the buyer wants to visit the property? how would you prevent a negotiation

Additionally, can someone please explain to me

a) The contract between the seller and the broker

b) The broker and the Buyer

As my understanding is that the broker signs a contract saying he will buy/assign the contract from the seller. In which case, isn't there a potential risk if the deal falls through (e.g the broker has agreed to purchase the property)

Is the finders fee specified in the buyers contract?

Thanks, I look forward to your responses.

Kind regards,

Max