Wholesale Help

[vhearnjr]

I have  investor John getting rid of a property for $185K and I have an offer from  investor Dave for $190K.  I woulld receive the difference of 5K for my wholesaling fee.  How do I construct the deal?  Do I put it under contract from investor John and assign it to Investor Dave?  When do I get paid and if im not mistaken its by the title company at closing correct?

[Aithne]

Put it under contract.  Never ever question that.  He who controls the contract controls the property.  Never ever take what one investor tells you as gold.  It only takes one time to get burned and you'll know what I mean.  I'm trying to save you a headache.  I trust the people I work with a lot but not to the point of stupidity.  Money is money and can cause some people do things you would never expect them to do.

As far as getting paid, I like to be put on the HUD and paid at closing when the other funds are dispersed.  There will be times though where your buyer will close cash at the lower sales price and then turn around and do a cash out on the property and pay you from those proceeds.  That's good and fine too, but make sure you get a promissory note that makes them understand if they don't pay you, they will end up losing their first born.  This promissory note should also state that you can place a lien on the property should they not pay you.  I have never had a problem getting paid, I have been back doored by unscrupulous investors though.

On your first few deals, just make sure you take care of you.  As you develop relationships with your buyers, you can relax a bit more, but always, always contract a property.

[vhearnjr]

Thanks.  I just put the property under contract and I am moving forward with the wholesale.  It was easier than I thought and I made sure I Covered my assets with my other investor too.  Thanks for the good advice.

[yudie]

I like to be put on the HUD and paid at closing when the other funds are dispersed. Can someone explain what "Put it on the HUD means" ? Is that the HUD 1 form that is used at closing ?