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Actual for You - When Wholesaling Real Estate, Who's Name Goes on The Contract?
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We typically use earnest money contracts, but we also have a clause in the contract AND disclose to the seller that we will need some time to try to
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I think, from what she said, that part of her concern was liability and the other part was how the wholesaling process mechanically works. So, here is my brief overview of how we Wholesale and how I recommend you do it.
In our business, our Independent Contractor Wholesalers go out and talk to motivated sellers who want or often need to sell their house. When we wholesale that house we typically have our Independent Contractor Wholesalers present an offer from us to purchase the house.
The key here is that we also add, “AND/OR ASSIGNS” and make sure that the contract we are presenting allows us to assign our rights in that contract to another buyer.
If you were wholesaling on your own (not as an Independent Contractor Wholesaler for us), you would use your business (or personal name if not operating as a business) on this contract.
Is there liability in signing a contract like this? Yes. Depending on the contract you use, the person who is agreeing to buy may be risking their earnest money or may be liable to be sued by the seller to complete the sale.
We typically use earnest money contracts, but we also have a clause in the contract AND disclose to the seller that we will need some time to try to f
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In our business, our Independent Contractor Wholesalers go out and talk to motivated sellers who want or often need to sell their house. When we wholesale that house we typically have our Independent Contractor Wholesalers present an offer from us to purchase the house.
The key here is that we also add, “AND/OR ASSIGNS” and make sure that the contract we are presenting allows us to assign our rights in that contract to another buyer.
If you were wholesaling on your own (not as an Independent Contractor Wholesaler for us), you would use your business (or personal name if not operating as a business) on this contract.
Is there liability in signing a contract like this? Yes. Depending on the contract you use, the person who is agreeing to buy may be risking their earnest money or may be liable to be sued by the seller to complete the sale.
We typically use earnest money contracts, but we also have a clause in the contract AND disclose to the seller that we will need some time to try to
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The key here is that we also add, “AND/OR ASSIGNS” and make sure that the contract we are presenting allows us to assign our rights in that contract to another buyer.
If you were wholesaling on your own (not as an Independent Contractor Wholesaler for us), you would use your business (or personal name if not operating as a business) on this contract.
Is there liability in signing a contract like this? Yes. Depending on the contract you use, the person who is agreeing to buy may be risking their earnest money or may be liable to be sued by the seller to complete the sale.
We typically use earnest money contracts, but we also have a clause in the contract AND disclose to the seller that we will need some time to try to
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If you were wholesaling on your own (not as an Independent Contractor Wholesaler for us), you would use your business (or personal name if not operating as a business) on this contract.
Is there liability in signing a contract like this? Yes. Depending on the contract you use, the person who is agreeing to buy may be risking their earnest money or may be liable to be sued by the seller to complete the sale.
We typically use earnest money contracts, but we also have a clause in the contract AND disclose to the seller that we will need some time to try to
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We typically use earnest money contracts, but we also have a clause in the contract AND disclose to the seller that we will need some time to try to find our buyer and that if we do not find our buyer in that time, then we both agree to cancel the contract and return our earnest money deposit to us.
So, as you can see, our risk is very small in wholesaling real estate especially when you consider that we typically use $20 for earnest money and often times we even use a promissory note for $20 instead of cash or check.
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