OfflineWhat is included in a Wholesalers Contract? When do you present it to the investor? Once I have found the property and investor is ready to buy, do I hand it over to a Realtor? If not, what do I do after this?
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Wholesaler's Contract
Posted on: Fri, 07/11/2008 - 05:20
Welcome to the site... Not really sure what your asking here. There is no 'wholesalers' contract. It's just a standard purchase agreement you use to buy any property. If you're locking up a property that's what you'd use. Then you do an assignment contract with the investor. It's two seperate contracts. If you're doing it as a bird dog, then you use a promissary note, I believe. I've never bird dogged so I'm not completely sure of the process. I prefer assigning contracts because your profit margin is set by you and not the investor. As a bird dog the investor sets the price he pays for your finder's fee. Hey, if I find it, I decide what I get paid, but that's just me... LOL! Usually realtors aren't involved when you're wholesaling, you open escrow with a title company when the purchase agreement is signed by both parties and they will take care of distributing the money. Hope this answers your question.
Elena ;D
Psalms 118:23 "This is the LORD's doing; it is marvellous in our eyes."
thank you elena...so what ive done is used the "finding investors" technique to get me started on my investing journey...ive been blessed to have been approached by several investors but in particular one...because of the ads ive posted...this is my first deal id be locking up and this investor in particular wants to invest into bulk r.e.o. (commercial residential) in the millions...im a little nervous b/c im doing this blindly never doing this before...and my first time i hit BIG, wow....so the point we are at now is the letter of intent (where can i get a sample contract of the LOI)...what finder's fee percentage do i set on a deal like this, approximately how much...the buyer (the client who approached me) mentioned that id get paid on a 3 point system (3rd party via escrow)....what the heck is this....as the investors negotiate back and forth using me as an intermediary i just take notes...some stuff i understand....some stuff i dont....but im learning....and i am determine to stick this out....i figure when i get via this....id be able to get via the smaller deals....thanks elena for your help....if you can direct me in the direction of locating a sample LOI, it would be greatly appreciated....thank you very much....
I'm not familiar with any of this. Why do you need a letter of intent? The three point system is news to me. I guess my question here is what are you trying to do? Are you finding the deals and assigning the contracts to them? Or are you finding them for a finders free to get a finder's from them. This all sounds fishy to me.
I couldn't find one on the site but here's a sample of a letter of intent you can check out, maybe even be able to download it:
http://www.docstoc.com/docs/16084/Letter-of-Intent---Real-Estate-Acquisi...
Please don't sign anything you don't understand, make sure you know exactly what you're doing before you agree to anything. Keep me posted...
God bless,
Psalms 118:23 "This is the LORD's doing; it is marvellous in our eyes."