[Anonymous]

Anonymous

In an effort to get more activity on the forum, I’m going to post some of the emails I get every day

here’s one:

I found a house and the asking price is $7000. I’d like to wholesale it for $12,000.

I did it once a couple years back by putting my name “and/or assigns” on the buyer line of the contract. That was before I was a RE agent.

Now that I am licensed, I am not sure if I can still wholesale homes without going through my broker and paying brokerage fees.

I talked to another agent/investor who suggested that I have the seller sign limited agency with me and negotiate that I pocket the difference between their asking price and the actual selling price. In other words, I would market the house for more than the asking price that the seller is looking for. (Of course, the seller would have to agree with this).

Am I missing something here? I am not sure if having my license is an advantage or disadvantage for this. Any suggestions much appreciated.

[Anonymous]

Anonymous

First you need to get a written agreement with your broker that says you are free to do deals for your own account.

Then..
Write a purchase contract for the $7,000 with a contingency clause that states that states the contract is subject to inspection and approval by your investors by(date)

Then market the property to your investor wholesale buyers.

You have two choices for selling:

(1) write a contract with your buyer for $12,000 or whatever you agree to. Then do a simultaneous close. The advantage of this way is the seller & buyer will never know how much you made.

(2) get paid for you to relinquish your option contract — get a written and notarized statement from the seller that they will pay you $5,000 to remove your option so they can sell to ( your new buyer) Then the seller and buyer contract together.

(3) — yes there is always another way… create an llc… then write the contract in the name of the llc as buyer. then, instead of selling the house, sell the llc. This works great when you are purchasing bank owned houses because they will now allow assignments.

good luck

Jackie