Knowing the party your buyer is wholesaling to is irrelevant.The common law favors the freedom of assignment, so an assignment will generally be permitted unless there is an express prohibition against assignment in the contract.

The problem I see with this article is that it bases the "hottest markets" on new permits for new construction.

Usually, that's a city inspector who's inspecting for a specific permit.

i gc my rehabs..i pull the building permits and sub everything out..i manage the day to day, the scheduling of contractors, the ordering of materials...you think some sub cares if they get you a good deal on materials?

Again, an FHA loan allows for the Seller of the duplex to contibute up to 6.00% towards your closing costs/prepaid expenses, so you can take that into consideration with the price your willing to pay (ie. higher price & less out of pocket for you).If you were in TX I could help, but if not, talk to a local mortgage banker/broker and they can get you set up.One more item, if your current residence is financed by FHA then you can't do this as your only allowed to have one FHA loan at a time with very few permitted exceptions, of which your situation does not fall under.

I am in SoCal physically but open to lending in most States/cities.Since this is a hard money loan, can I do it on an individual to individual basis or do I need some type of license/permit?

I mean more brs will help with cash flow but what happens if there is a fire that starts in the additional unit with no permit?

Best way is to go to county ( or city) planning department where they get building permit.

:D Real Estate Investor - Any of several unemployed individuals who spend the majority of their day painting and cleaning properties, staring at their computer monitors looking for deals, or talking on the phone to countless agents, contractors, lenders, etc. all for the express purpose of avoiding a "real" job.Tenant - A sub-group of life form that neither understands the basic fundamentals of cleanliness or operating a simple traditional stove top without causing over $500 worth of damage.Landlord - A multi-millionaire dollar narcissist who owns a phone that apparently never rings, an e-mail account that never receives, or a mailing address the post office never delivers to.Buy & Hold Investor (cash-flow) - A landlord who realizes after acquiring, rehabbing, and leasing several dozen properties, that he still doesn't have enough income to get off food stamps.Buy & Hold Investor (appreciation) - A speculator who holds onto his properties for several decades with the ultimate goal of making his great-grandchildren very wealthy.Note - Various discrete elements that make up music.Points - The sharp end of a nail or screw.Hard Money Lender - See "Loan Shark".Paint - An opaque viscous substance that exhibits the following properties, 1) costs far more than one would expect, 2) never looks the same on your wall as it did in the store, 3) covers half the area stated on the can, and 4) will only clean up with "soap and water" provided you add bleach, acetone, and sandpaper.Wholesaler - A mysterious sort of creature that makes large expensive purchases despite having no money whatsoever.Flipper - An overly dedicated individual who spends 2 to 3 months renovating property for a profit only to find they averaged $1.25 per hour.Motivated Seller - A rare and endangered species that has been hunted to near extinction by various investors, wholesalers, flippers, etc.Lender - An institution possessing a large quantity of capital not available to the public as there is more profit to be made in bank fees than mortgage interest.Asset Manager - An agent of the bank that couldn't tell the difference between a house and a shoe box.Foreclosure - The process a bank uses to seize a property from a homeowner and sell it for a loss rather than modify the loan and make a profit.Multiple Listing Service (MLS) - A large compilation of homes no longer available.Realtor - A member of an organization of real estate professionals open to several people who don't know anything about real estate.Bird-Dog - A motivated go-getter that performs 90% of a Realtor's services for 10% of the cost.Fixer-Upper - A term used to describe a house that only needs new paint, new carpet, a kitchen remodel, re-piping, re-wiring, several major structural repairs, and a foundation which requires a team of seismic engineers to fix.Turn-Key - A term that describes a "fixer-upper" (see above) that has been completely repaired and is available to an out-of-town investor for 20% above prevailing market rates.Contractor - A member of a special fraternity that shows up at your property to collect a check and at no other time.Appraiser - A professionally licensed individual with a tape measure, clip board, and camera who spends hours compiling a 30 page report telling you something you already know.Home Inspector - A guy with a ladder and flashlight who charges you $250 to inform you that you really need to speak to a licensed contractor (see above).Plumber - Somebody who gave up their medical practice in order to triple their earnings.Real Estate Guru - Somebody who gave up their plumbing business to triple their earnings.Bootcamp - A place would-be real estate investors go to part with the cash they could otherwise be using to purchase real estate.

Andrew,It is called a 1031 exchange because Section 1031 of the Internal Revenue Code permits you to defer the capital gains tax that would ordinarily be due on the sale of investment or business use property on your federal income tax return when that property is the relinquished property in an exchange.