Posted by Don (VA) on August 26, 2008 at 13:49:05:
Those are legitimate questions. However, any decent course in wholesaling should have answered most or all of them.
And any course should have had the forms to use, as well as a list of which forms. (Now, some courses may suggest more forms or less, and may word them differently, but that’s really, really basic.)
The main thing is that you’re going to have the seller agree to sell to you “and/or assigns.” You make the contract assignable. Then, as a wholesaler, you’ll assign your contract (your agreement to purchase the property) to someone else (an investor, usually) for an assignment fee.
As for an escape clause, different mentors and gurus use different language. Here’s the language from one:
10. Breach of Contract and Default. The Buyer and Seller are required and agree to make full Settlement in accordance with the terms of this Contract and acknowledge that failure to do so constitutes a breach hereof. If Buyer fails to make full Settlement or is in default due to Buyerâ??s failure to comply with the terms, covenants and conditions of this Contract, Sellerâ??s sole remedy shall be to retain Buyerâ??s Deposit as liquidated damages and not as a penalty.
You don’t need (and won’t be using) a real estate agent in order to wholesale properties. You should have an attorney on your team. Your attorney will charge by the hour; rates vary, but could be $100-$250 or even more per hour.
How long do you have to wait until you receive your money? It depends. Once you find someone to assign the contract to, you may receive some or all of the assignment fee. Sometimes–best case scenario for you–you’ll receive it all when you assign it. Often, you’ll receive some when you assign it and the remainder when it goes to closing.
Title or settlement companies should be listed in the phone book. Or call any real estate agent or real estate attorney’s office and ask for the names of a few.
The more I think about the questions you’ve asked (and they’re good questions; don’t misunderstand me), the more concerned I am over the course you bought. All of this, and much more, should have been addressed in any course on wholesaling.
I see that the course you bought offers “a 92 Day 100% money back guarantee, as well as one on one consulting if you have any questions.”
I’d suggest engaging in a little of that one-on-one consulting and, if that doesn’t clarify issues sufficiently, take advantage of the money-back guarantee.
Good luck.