The anatomy of a wholesale transaction

Hi! This week Id like to share a little more insight on how we structure our purchases, as well as how we assign our contracts or resale the property to you.

Sometimes we hold contractual interest, and we assign said contract to you as the buyer. What this means is we sign a purchase agreement with our seller, and we immediately submit the agreement to our title company to begin the title search and commitment process. This typically takes 3-4 days to get returned, however, during busy seasons could take longer. Often times the distressed properties come with title issues as well, which can delay the title commitment process.

We tell our sellers that we are the buyer, but we also have the right to assign or resale, and that often times we do that.

We typically put a 30 day closing window in our contracts, with a 10 day inspection period. Often times we are closing before that 30 days, but it all depends on the title and the seller’s wishes.

When we offer a property here on our website, we will disclose whether we are selling the contract on it, or, the property. If selling the contract, that means we have equitable contractual interest and will assign the contract to you at closing. If we don’t mention this, then we have already purchased the property and hold title.

One thing to make clear is that we commit to buying the property from the seller, whether we ‘wholesale’ it or not. Often times we end up doing this because of a tenant issue, or the seller needing time to move out. Other times could be a court approval with our name only as the buyer, or a bank purchase, etc..

When assigning, everything is pretty standard on your end of the purchase. We still use a title company, and we wait until closing to officially assign the contract. You step in as the buyer, and your settlement statement will show our original purchase price, plus any assignment contract purchase to us.

The earnest money that we offer to our sellers is not passed on to you, as we “eat” any earnest that we have already paid.

We like to hold properties and resale with seller financing, so often times we have properties that are not offered here for sale. Please reach out to us and make sure we know what you are looking for ,etc… because sometimes we can pull off something that we normally would hold for ourselves, and go ahead and sell it to you.

If you have any questions about this, don’t hesitate to call me at 501-Five seven zero, 6950.

Happy investing !

-Justin

Looking For Investment Properties?

Fill out the form below to join our "Preferred Property Buyers" list and for local real estate updates too!

Enter Your Information Below To Get Immediate Access

... to our HANDYMAN specials. *These are not on the MLS - Many are below $50k. Available properties on the next page.
  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published.