In 2012 I started my real Estate Investing Journey by going to Rich Dad, Poor Dad 3 day conference in Bellevue, WA. I was only there for the first day because it was free! but on that first day, I learned about a technique that few were using back then. I didn’t have much money and wanted to learn about flipping houses with no money. This is when I was introduced to Wholesale Real Estate Investing.
Wholesaling Real Estate is the best way to start in Real Estate Investing! The reason being, the startup cost is low and if you are taught correctly you can make 6 figures your first year! This is how I started my Real Estate Investing career and it just happens to be the base for your whole business because this technique is where you will get all your leads for all your future exit strategies.
ASSIGNING THE CONTRACT
Assigning the contract is when you get a property under contract with the seller, using A Purchase and Sale Agreement with the seller. This Contract you sign with the seller will give you the right to buy the property or Assign the contract to another buyer. In order to do this, the contract has to have the following language after your name or company name that you are using to write the contract. “And/or Assign.” For Example, if your company name is ABC, LLC you will need to make it ABC, LLC and/or assigns.
To get the deal under contract you have to negotiate with the seller in order to get the property at a Double Closing is when you get the property under contract but for some reason you cannot assign it, so the Escrow agent will close the first transaction with you and the seller, that is the A-B contract and then now you are the seller of the property, you sign another contract between you and the buyer, which is the B-C contract. All this happens the same day and you make the difference. This is a good method if you do not want the buyer or seller to know how much you are making on the deal.
DEEPER BREAKDOWN OF WHOLESALING
Learn more about The Wholesaling Real Estate Definition.