SALES CONTRACT FOR BUYING SUBJECT TO – Wholesaling
byadminonApril 18, 2012
Sales Contract For Buying Subject To Wholesale
Wholesale deals are only to be entered into when the investors meet the following criteria.
They do not have that amount of cash
They are new in the industry
They do not have large marketing budgets
Their potential deal does not meet or fit in with the criteria parameters set
The property requires renovation of more than 10%
In wholesaling of real estate the investor acts the part of the middleman. In this way discounted properties which match the prospective buyer are located by the investor. The investor transfers the property to the buyer then.
Assigning a Sales Contract For Buying Subject To Wholesale requires that the investor sell the contract and not the property. The investor does not own the property but they control the property though the means of the contract. So once the investor gets the contract the end buyer becomes the investor.
A wholesaler develops deals and he also finds different investors which he or she can sell these deals to. If the assigning of the Sales Contract For Buying Subject To wholesale does not work out, the investor can opt for double closing which is also called as simultaneous close. This is an equally profitable strategy for wholesaling. In a double close the investor buys the property and only at a later date he resells it.
In double closing, the company enters into the title chain and so owns the property for a short period of time before it is resold.
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