Newbie at wholesaling. Need advice!

[ndiaz]

Hello everyone!   :roll:

I am real need of some detailed advice.  I finished reading a book on flipping and although the book was good, I am still somewhat confused.  I live in Houston and wish to know what really works in this area.  I also have some questions:
- Which is better:  Double closing or assigning a contract?  What if the buyer is financing and not paying all cash (private or hard lender)?  I read that double closing may be a problem, but is it in Texas?
- Do I have to pay for a title search and insurance?
- If I assign a contract, am I no longer responsible for closing?  What if the buyer backs out?  Will the contract haunt me back? Does it go the same for double closings?
- Do I need to ask for a deed?

PLEASE HELP ME!!  If someone has the time to talk to me on the phone I would greatky appreciate it!!  You can email your phone number to mncerro@kingwoodcable.net and we can set up a time that would be mutually beneficial.  Otherwise, I want to thank those in advance who respond to me with their expertise.


Natalie

[tedjr]

It helps to have a friendly title agent. One that works with other flippers would be a good place to start if you do not have one already. Usually on a double close you can pass most of the expenses to your buyer. I have even had tha deed and other papers drawn just once where the original seller deeded the property to my buyer. On some deals I have been the buyer and it was easier just to have the flipper assign the contract. My flipper was kind of sligh and rarely had any earnest money to loose if I did not buy the property. It is always good to have a back up plan in case your buyer can not close. Word travels fast when do not perform as expected in real estate deals and you do not close. You could loose your earnest money but probably that would be all. Specific performance lawsuits are costly and rarely filed. I hope i helped a little. contact me if you would like to talk or ???

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile

[StacyKellams]

Natalie,

Glad to have you posting. I'll try to answer your questions as you asked them.  What book did you read about wholesaling?

- Which is better: Double closing or assigning a contract?

It depends...  I personally like to assign contracts. I think it's cleaner that way. I will always go for the assignment first and the double close as a backup option. Remember, every contract is assignable unless the contract states otherwise. DO NOT add "and or assigns" to the contract. It will give you away as a newbie and banks and HUD won't even accept it.

What if the buyer is financing and not paying all cash (private or hard lender)?

Doesn't matter how the buyer buys as long as he has the money on the day you set in your contract. Give yourself plenty of time to close. Ask for at least 60 days and work down from there. I prefer 45 to 60 days.

I read that double closing may be a problem, but is it in Texas?

Again, depends on the situation. Try to assign first.

- Do I have to pay for a title search and insurance?

No! Find a title company that understands what your doing. If they try to charge for two closings, find a new title company.


- If I assign a contract, am I no longer responsible for closing? What if the buyer backs out? Will the contract haunt me back?

Technically, no. Professionally, yes. When you assign the contract, the assignee steps into your role and is obligated under the terms of the contract. However, as Ted stated. Word spreads fast about who performs and who doesn't. If your buyer bails and you leave your seller hanging you're going to have some explaining to do. That's why you need a good backup plan B.

Remember, sellers have to sell, buyers don't have to buy. You can walk out of any contract and forfeit your earnest money.


- Do I need to ask for a deed?

No. Not if your intention is to flip the property.

[ndiaz]

Hi Stacy and Ted:   :flashsmile

I wanted to thank you for answering my questions.  By the way, Ted, I sent you an email and Stacy, I sent you a pm.  

Thanks again,
Natalie  

[StacyKellams]

Natalie,

I got your private message. I'd like to post your questions on the main board so others can benefit from them as well.

Would that be ok with you?

[ndiaz]

Hi Stacy: :

Sure! It's okay for you to post them

Thanks,
Natalia

[lovetoknow]

Then how do you assign if you leave out "and/or assigns" ?



- Which is better: Double closing or assigning a contract?

It depends...  I personally like to assign contracts. I think it's cleaner that way. I will always go for the assignment first and the double close as a backup option. Remember, every contract is assignable unless the contract states otherwise. DO NOT add "and or assigns" to the contract. It will give you away as a newbie and banks and HUD won't even accept it.