Wholesaling

Wholesaling and Assigning Contracts

This strategy allows you to make money in real estate:

With no money or very little money
With a bad credit score
Without having to get a loan
With no job or low paying job
Without having to fix anything
Without taking risk of getting property sold (getting stuck with property)
Without having to own anything or put anything at risk

What is Wholesaling and Assigning Contracts?

The basic premise of Wholesaling is finding potential deals, analyzing those deals, getting them under contract and then assigning the contract to another investor for a fee. The investor will then actually close on the deal and take responsibility for getting the property fixed and sold or rented.

How does it work?

Assigning vs. Double Closings

Assigning

After the wholesaler has the deal under contract they will assign the contract over to the investor buyer using an “Assignment of Contract” form.

-Easiest and cleanest method
-Wholesaler paid at closing by title company (don’t worry about not getting paid)
– One contract

Double closings

This type of wholesale deal involves the wholesaler actually closing on the deal and then selling it to another investor immediately.

-Don’t do this method if you don’t have to
-Two contracts involved
-Wholesaler needs funding to close the deal (at least for a minute)
-Two sets of closing costs

Should you assign deals or rehab them yourself?

-What would you rather do?
-Rehabs typically require more money
-Typically make more money on rehabs
-Quicker short term profits with Wholesaling
-Make less money per deal Wholesaling
-Do more Wholesale deals and make same amount of money overall