Wholesaling and flipping houses........?

Question

I get the seller to sign a property contract with me and I have the buyer sign an assignment of contract with me, is that all the forms I need ? Do the buyer and I sign a property contract too ? How do I actually get paid? Do either party ever know the real prices ? thanks in advance....fs

Answer 1

You and the buyer don't need a seperate contract. The purchase option contract you have with the seller will suffice. Your contract with the seller says something along the lines of "Frank and or assigns" has an option to purchase 123 main street for six months at 100k and has given seller a non-refundable option fee of one dollar.

Now you take that contract to the buyer and you write on the back of it "I, Frank, assign my rights under this contract to Joe Buyer for a non-refundable option fee of $10,000. Joe buyer now gives you 10k and pays the seller 100k.

The above is not exact and is just to give you a general idea. It's also ok if the seller finds out how much you made. Buying cheap and selling high is the American way and there is nothing the seller can do about it.

Regards

Answer 2

This sounds like you are just getting started and think that this is an easy way to make money. The TV shows really make it look that we, don't they. I think you really need to do a lot more homewore. There is property and title search and settlement as well as having everything recorded.
Who pays for the property during your preparation time--you do
whohas to take out loans for any fix up required--you do

There is a lot more to it than you might think.

Answer 3

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