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Betty And Doug's Blog

By Betty And Doug | Both Buyer and Seller in Fresno, CA

Protect Your Interest in a Deal

Wholesale Real Estate Fresno CA: As the real estate wholesaler who has found the perfect deal for an investor, how do you protect your interest in the deal? Can’t the investor just go directly to the seller once he knows who it is and deal direct? That can happen unless you do something to keep your foot in the game.

Wholesale Real Estate Fresno CAOnce you find the seller and agree that you can buy the house for a given price, which will be deeply discounted, you will get a contract that gives you the right to sell it. When you go to speak to the seller about the house, take a contract with you so it can be signed then and there. It will be an ‘option to purchase.’

You can record the contract at the county recorder’s office. If you do this, however, others searching real estate records will see your specific deal details. If you want to hold your strategy details closer to the vest, you can file a memorandum that states you have the ‘contract to purchase’ the property including the property description. That will seal you into the middle and no one will be able to go around you without paying you for your work. You would otherwise become a cloud on the title that would have to be cleared up. It could, of course, be cleared up with you by giving you your fee.

Sometimes a desperate seller will try to sell to another buyer or investor for slightly more than you agreed to, while leaving you out altogether. The seller gets a little more cash, the buyer pays a little less than planned, and that’s because they are basically splitting your commission or finder’s fee. It does happen now and then.Finding good wholesalers or investors is probably the best way to avoid having trouble of this kind. When you want to do some wholesaling you’ll prospect for buyers so that when you do come across property you can call and have someone ready to buy.

Get to know your buyers. Take them for lunch or breakfast and tell them that you will find houses for them to buy.You’ll learn about the personalities and styles of your buyers before you do any deals. Any who balk at the fee you’d like to collect for your trouble aren’t a good match, obviously. It’s hard to believe but there are people out there that would prefer to keep all profit for themselves. Protect yourself ultimately by finding good investors to work with in the first place.

California House BuyersEvery home buyer has their unique situation and we have the expertise to come up with creative solutions to fit your situation and get you into the home of your dreams.

California Wholesale Real Estate
We’re building a cohesive real estate network that provides Buyers and Investors alike, a community platform to find great wholesale real estate deals continuously. We do the research, we do the negotiations and we work with our clients to deliver exceptional real estate deals while building relationships.


Comments

By Timothy M. Garrity,  Fri May 6 2011, 14:57
Excellent post about wholesale/assignment transactions.

Thanks for sharing this information.

TG
 
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