All Forum Posts by: Selena Stew

Quote from @Francisco Lucero:

Where is it? I don't have a big list myself but I might have a connection in the area you are looking for help with disposition in.

The city has a small population. 

I have a deal in Texas but I am worried about not finding potential buyers for that area so I am calling out any cash buyers who can assist. Based on the calculation of [ARV x 0.70 - repairs - my fee = offer to seller] and the comp locations I have, I should have a decent deal.

For the P&S contract for both the owner (seller) and buyer. Do I need to put my name and/or assigns under buyer for the owner's contract. Then name and/ or under seller for the buyer's contract. I understand that P&S contracts are assignable by default so I just want to make sure I did everything accurately. Or do I would I put something like contract vendor.

Next I will be giving the P&S contract I had with the owner to the buyer's title company. This is the correct thing to do, right?

Originally posted by @Bhekizwe M.:

The closing date is stipulated in the P&S agreement you have with the seller, so is the earnest money(minimal) and which attorney firm will handle the closing (your attorney firm)

The assignment fee is payable by the buyer to you after closing costs are accounted for

You as a wholesaler are assigning the contract to the buyer who is going to step into your shoes as Principal to the initial P& S agreement with the Seller.

 

So would I need an agreement to assign contract? The buyer did give me a sale agreement for property contract. Is that all that is needed from the buyer in regards to contracts? Is the person handling closing cost going to be giving me the assignment fee during closing? I'm confused on how I would be getting my assignment fee after I get the contracts finished and signed. Do I bring the P&S contract I had with the seller to the buyer and/or closing?

Originally posted by @Frank Chin:

@Selena Stew

In the situation described, you'll have two separate contracts. One with the seller of the property, and one with the buyer.

With the seller, you'll have P&S contract between the seller, and you. In this case you'll be the contract vendee rather than as the buyer, as normally would be the case. As to terms and conditions, you'll negotiate the various conditions you normally would with a seller, such as earnest money amount, closing dates, due diligence dates and any other special conditions.

Most real estate attorney have addendums to standard P&S contracts, namely, the contract is not assignable, and is the first item on their addendum, otherwise standard contracts is assignable by default. Make sure the seller allows you to do a number of assignments in case the first one or two falls through. I don't usually wholesale, but one seller has in his contract that this contract is assignable only once, and additional assignments require further approval.

When you find the buyer, you'll have another P&S contract prepared, in this case the seller is you, not a owner of the property, but as the contract vendor, and the buyer. Here you'll have to set your conditions similar to the one with the seller, earnest money, due diligence dates, etc., that mirrors the one on the seller side.

What I described above is the simple frame work of contracts involved in doing a wholesale deal, where the seller and buyer is on separate contracts, neither is aware of the profits you're making. Your profit is simply the difference between what you purchased the property from the seller, say $35K, and what you sold it to in the buyer contract, say $40K. And this is what they do in my area, in your area, could be different.

Are you describing a double closing? 

I have been self educating myself on real estate, investing, and wholesale for over a year or so. I have my seller and buyer ready with their attorneys ready on both ends. I need to make sure I do this correctly to receive a profit. I am confused on how to exchange contracts. The seller has an attorney, I am just confused on what info to give her. The seller's attorney is also wanting due diligence days, earnest money amount, closing date and other special stipulations. What do I inform her to make sure the contract is assigned to the buyer. 

I understand I need to make a sales agreement with the seller that has the offer price. Lets say its $29,000. I have an buyer who can give a cash offer of $30,000. How would I go about everything? After I have the sales agreement, do I then contact the buyer to assign the contract. How would I end up getting a profit after closing. What is the process? Any help would be grateful. 

I am a tenant and my apartment leaser had made partial payment plans throughout April-July. Mind you there was no late fees applied or added. I always asked my manager if they are still carrying out partial payment plans. I usually pay during the first week by the 5th and by the end of the month. It has been 5 days and my manager is just now informing us about the change to their partial payment plan. They said I should've known because it is in the policy. Yet I know what the policy says. The policy was not in effect during those few months.

Shouldn't they have sent a email like they did before about the partial payment plans. A simple email before the 1st saying we are returning back to our regular payment schedule. How in the world was I supposed to be informed that they switched their payment plans, when they failed to inform us on purpose. They keep saying I should know to pay my rent on the first. Which is what I was gonna do. Yet they failed to inform us of their payment changes. Because I would wait until the middle of the week to make my payment. That is not up to me to decide. How can I report them over this issue. What action can I take?

Now they are saying I needed to know about the cares act by myself. When it doesn't even mention in the act that it is the tenants responsibility.