Simplest way to Wholesale Real Estate:
Find someone who’s will sell at a discount.
Negotiate a price with the seller and sign a Purchase Agreement.
Find a buyer who will pay a higher price.
Assign the contract to a buyer, and keep the difference between the buyer’s price and the
Find someone who’s will sell at a discount.
Negotiate a price with the seller and sign a Purchase Agreement.
Find a buyer who will pay a higher price.
Assign the contract to a buyer, and keep the difference between the buyer’s price and the
seller’s price as your assignment fee.
But there’s a problem you might run into with Step 4 if you do it this way…
When you simply assign the contract to the buyer, the buyer gets to see how much less you paid for the property.
But there’s a problem you might run into with Step 4 if you do it this way…
When you simply assign the contract to the buyer, the buyer gets to see how much less you paid for the property.
A lot of buyers will get frustrated if they see you’ve made a really big assignment fee.
They might feel like you took advantage of them - which isn’t good if you’re looking to maintain the relationship with that buyer so you can do future deals with them.
They might feel like you took advantage of them - which isn’t good if you’re looking to maintain the relationship with that buyer so you can do future deals with them.
There’s a simple way to avoid this…
It’s to do a double close, instead of just assigning the purchase contract to the buyer.
It’s to do a double close, instead of just assigning the purchase contract to the buyer.
When you do it this way, the buyer doesn’t know how much you paid for the property. This allows you to earn higher assignment fees on your deals, without your buyers getting upset. DOUBLE CLOSING 101
