Double close Fannie Mae, HUD, FHA

Take the property in a Trust or LLC and "sell" the entity.

Michael

Thanks Michael for your advice, it was nice mtg U at the Edge, pls say Hi to your lovely wife Deborah and of course Hi to Dean if you see/talk to him.

Is that true that they have a lot of foreclosures in Florida right now, can u send me saidmahdavi@att.net some of your discounted deals, I have buyers for you here in San Diego? By the way, can we do networking on this site, if we can not pls disregard this message, I have great respect for Dean's rules and policies, he is my Savoir!

Said Mahdavi
858 207-8671

michael has the best advice for that for sure....
best of luck to both of you.......

WALT

Can someone with experience in the "Wholesaling-Niche" please help me with some answers.?

-How long can a property be under contract?

-What happens to the contract if you can't find a cash buyer?

-The phrase "and/or assignee" gives the wholesaler "Equitable Rights", what does equitable rights mean?

-If you don't have a LLC, Corporation, etc. Can the title company still make the check to your legal name?

-What does a Real Estate agent get from helping a wholesaler find deals. How will the RE agent get paid? How will they benefit? What do they get out of it?

-If a wholesaler is using a Real Estate attorney for the closing, escrow, etc...how does the RE attorney get paid?

-When "assigning" a contract who pays for the closing cost?

-Why is the "earnest deposit" needed?

-Who puts up the "earnest deposit"?

Thank You!

If it's a HUD, you can add your buyer to your contract and then quit claim it to him for your wholesale fee.

-How long can a property be under contract? How ever long the seller will let you have it under contract for, usually a reasonable amount of time for a wholesale deal will be 3 to 4 weeks. Maybe 5 weeks if the seller agrees.

-What happens to the contract if you can't find a cash buyer? Then you back out of it before the inspection period ends. You need to write in your contract a long inspection period. You might have to tell the seller you are looking for other investors to "joint venture" with and maybe your private money partner "backed out" or upon further investigation the numbers just don't work for you.

-The phrase "and/or assignee" gives the wholesaler "Equitable Rights", what does equitable rights mean? It means that the contract is assignable. You have a legal binding contract to purchase the property, that is your interest in the property. You can assign the contract to another buyer for a fee, i.e. the wholesale fee. I don't know how to explain the legal jargon.

-If you don't have a LLC, Corporation, etc. Can the title company still make the check to your legal name? Yes, you can put the contract in your name. The check will go to the name on the contract.

-What does a Real Estate agent get from helping a wholesaler find deals. How will the RE agent get paid? How will they benefit? What do they get out of it? If they help you find deals on the MLS, then they make their commissions when you buy. They will make the offer for you to the listing agent for the property. Usually they will handle the paperwork. In my state, the standard contract will not state "and/or assigns" so you would have to make sure they list that.

-If a wholesaler is using a Real Estate attorney for the closing, escrow, etc...how does the RE attorney get paid? I don't know this one because in our state we use title companies. They get paid out of the funds in escrow and will follow the instructions from the contract, i.e. "buyer pays all closing costs" or "closing costs shall be split as is customary".

-When "assigning" a contract who pays for the closing cost? Depends on how the contract is written. A lot of wholesalers are looking for motivated sellers and in order to get the low price the seller may often be told "we will pay all closing costs, the total price will go directly to you". This is for OFF-Market deals. If it's listed on the MLS, usually the seller pays agent commissions, but you can still offer to pay the closing costs. When you assign the contract, you are basically handing it over to another person or entity for a fee, so you wouldn't pay the closing costs, but the buyer is getting your contract and will have to follow the instructions in the contract.

-Why is the "earnest deposit" needed? The earnest money towards the purchase of the property plus the contract are what makes it a binding contract.

-Who puts up the "earnest deposit"? Buyer... and that would be you.

so cool to see you wholesaling my friend. didnt know that about hud/fha/fannie i thought you could just double close it. good advice. thanks MIchael.

I appreciate your beenthere,donethat input..I also found your bio story interesting.

As Michael mentioned above, put the property in a trust or LLC and sell the entity. You will have no problem.