[Jordan McCoy]

Jordan McCoy

Anyone here familiar with strategically doing novation agreements with sellers?
Really interested in how you are presenting them.

[DON WEDE]

DON WEDE

Been doing them since they changed the law in Illinois on wholesaling.

[Jordan McCoy]

Jordan McCoy

After you contract it and get POA, you then put it on the MLS until you find a buyer? Then sign a novation agreement with seller?

It’s basically A-C contract correct?

Seems like a very profitable option that seem like skinny wholesale deals.

[DON WEDE]

DON WEDE

I put it under contract. Then sign a consideration agreement with my investor/end buyer. I sign a novation agreement between myself and seller. It allows my investor to sign a third party contract with the seller.

[Jordan McCoy]

Jordan McCoy

Do you typically put these on the MLS to find your end buyers?

[Hugh Hill]

Hugh Hill

Don, Do you mind sharing your paper work flow with us?

[DON WEDE]

DON WEDE

Hugh,
If I was the author of the paperwork I would. It is the property of an investor/partner that does not want it to go out for completive reasons in Illinois.
I will try to help out. You first have a novation agreement were the seller and my company agree to the novation. The seller agrees to contract with a different buyer of the property through a third party contract with the exact terms of my contracted agreement. Of course by singing this we both agree.
The next document is the third party contract with is identical to the original but has the new buyer on it. Finally a consideration for novation agreement between my company and the end buyer. That is it. Easy to construct.

[Hugh Hill]

Hugh Hill

Thank you Don for sharing what you could with us. I appreciate that.