This is Part 3 of a 3-part series on how to find motivated sellers, control and profit from a single family investment property wholesaling it to another investor.
Part 3- [You are here] Contracts & What Things To Avoid To Make Sure The Closing Process Goes Smooth & You Get Paid
Ok here we are with part 3 of the wholesaling for quick profits series.
Let’s wrap this thing up!
As I teach in the Flip Your First Deal Training , you can profit quickly flipping houses you don’t own or without any special license or certification. However you need a special contract.
A contract that will allow you to control the real estate without ever taking ownership of the property. And will allow you to easily assign the rights to that contract to another buyer for a fee.
So you can start to get checks like this…
See Video Below
And I later pocketed a $8,000 wire 5 days later.
If your paperwork is right you can do this over and over and over again. Make a fortune and eventually supplement your income and go full time like I did in 2010.
The Key things that needs to be in your Purchase Contract
- That you are purchasing the contract and some type of clause which says you can assign the contract to another buyer
- A clause which shows that you have 30 days to purchase the property and the right’s to market to another buyer
- An inspection clause (this will allow you to back out the contract, if let’s say you can’t find a buyer)
Having these clauses protects your interest as the buyer, but also will allow you to control the deal without ever owning it.
You will need one more contract and that’s the Assignment of contract. You will use this when it’s time to sell the property to your end buyer. So for instance. This deal where I made $32,000 I purchase it for $22,000 and sold it for $55,000. I pocketed my $32,131.00 and my parter on the deal made $5,000.
The rest went to closing costs which I agree with the seller that I would pay them.
Understand that you will be getting paid from the buyer. You agree with them on a certain price and out of that price, the agreed price you have with the seller gets paid that amount. You get paid whatever amount you put your assignment fee for, and the new buyer has a new investment property.
Now when you have a buyer and you have a signed contract in order for you to get paid, you need a licensed title company or licensed closing attorney.
The thing is you need a investor friendly title company.
You want someone that handles these type of deals on a regular to handle the transaction and close the deal for you. You can easily just ask around for good investor friendly title companies. And investors will tell you which ones they’re using.
This is what I teach my students to do in ourFlip Your First Deal training.
They will handle the whole closing process for you, which includes making sure their isn’t any issues on the title like back taxes owed, mortgages, liens, or etc.
Once they check this which typically can be done in 48 hours, you’ll have a clear to close.
A lot of people ask do you need to be present at the closing, and how does the process go?
Well I can tell you I never go to closings. It’s just not my thing. I let the experts do what they do.
Generally the buyer comes in with the check and signs the paperwork, and then the sellers comes in signs the paperwork and get their check. Then the title company will call you in to come sign your document and get your check.
Now that you see how simple the process is to flip (wholesale) properties, how can you resist the opportunity to start investing in real estate?!
Get more details and join us over atFlip Your First Deal!
I hope you’ve enjoyed reading this blog series as much as I’ve enjoyed sharing it
Leave me a comment with any questions and let me know what you think!