What Is a Wholesale Real Estate Assignment Contract All About?
What is a wholesale real estate assignment contract, and why should you consider learning about these types of contracts as part of investment strategy? When it comes to real estate investment, this question is one of the most important to keep track of, especially if you don’t have a lot of capital to start with. Beginning your business endeavors as a wholesaler and then moving on to fry bigger fish as a fully-fledged real estate investor can get you rich without too much deliberation. However, you have to know all about the legal aspects of the business; for example, your real estate assignment contract.
Your Wholesale Real Estate Assignment Contract
So, what is a wholesale real estate assignment contract about, and how does it relate to real estate contract assignment? Contract assignment is simply the process of finding a property whose seller is willing to sell below market value, then resell the property to an investor for a profit. The assignment contract is the contract you sign with the seller, which names you as the buyer, but also adds the term “assigns.” Legally, the presence of that term in your contract shows that you intend to pass the real estate property along to someone else, along with the purchase rights. This type of contract and the procedures it involves are at the core of what makes wholesale real estate work without any legal issues.
Fast Real Estate Profits Gained with Ease
When you have a good idea of just what is a wholesale real estate assignment contract all about, you can have a contract drafted that will take all possibilities into account. This option will get you a quick profit and allow you to gain quick profit just by contacting an investor to sell it for a profit. Since the contract basically locks the property, you have a window of opportunity to find a buyer after the deal is closed. You and the seller will get paid as soon as the buyer will wire the funds. Keep in mind, that amount will have to cover all expenses, including the transaction fees and the money paid to your title company or whoever else helps you with the process. After all payments are completed, you can enjoy your profits, or invest them into improving your business.
Getting the Contract
The question, what is a wholesale real estate assignment contract is important, but equally important is gaining access to the contract fast. While there are templates of contract on the internet, you’re better off finding an attorney to help you draft and/or approve the contract. There are many legal terms that have to be included, and the verbiage is critical. With a well-drafted contract, you can assure the seller that they’ll get the funds on time and avoid any legal traps that you might fall into.
Finding Your Real Estate Buyer
The buyer you locate has to be able to cover not only the amount the seller is asking, but also the legal and transaction costs, as well as your profits. Craigslist ads, email marketing and Zillow are a few possible options for finding a reliable investor. Also, it’s important to demand that the investor provide a nonrefundable money deposit, to offer an added assurance to the seller. These are all important points to remember when it comes to figuring out the details of what is a wholesale real estate assignment contract.