DanParticipantMay 27, 2018 at 4:01 pmPost count: 6
I did advertising and I got some leads. One seller has 5 lots they want to sell. What do I do next? He was asking me what I thought he could get for them. I did the analysis and came up with a number for each. What do I do next? Do I actually need to purchase the properties before re-assigning them to the new buyer? Still confused on how this works.Anwar MontgomeryParticipantMay 27, 2018 at 10:20 pmPost count: 97
buy the property and sell it for more than you purchased it for.
if you dont have the money, put it under contract at an agreed price then assign the contract to a buyer at a higher price than your original contract, and you keep the difference.DanParticipantMay 28, 2018 at 1:22 pmPost count: 6
Isnt that illegal? Dont you need to have “equitable interest” in a property..meaning you have to fund it then resell, correct? Also, do any of these title companies go over this upon submitting a contract?Kevin FarrellModeratorMay 28, 2018 at 1:44 pmPost count: 898
Dan – You might consider doing some simpler deals until you get about 10 deals under your belt. Your questions are all good, but most of us need a little more experience in land deals before doing contract assignments. I suggest that you purchase the properties with whatever cash you have to work with, then resell them. You will be learning a lot just doing those first few deals.Anwar MontgomeryParticipantMay 28, 2018 at 1:48 pmPost count: 97
It’s a grey area. The fact that you got the property under contract for XXX amount, that’s your equitable interest. The contract shows that you have an interest in the property. When I do an option deal/assignment, I put down a nominal, non-refundable amount. I know many people don’t agree and do options/assignments without putting down any money. Do what’s comfortable for you. I’m a bit more on the conservative side and don’t want to be on the wrong side of the grey area if something happens.
You can skip all of it and just buy the property, be the owner of record and sell it so you don’t have to worry about any of this. That’s probably the better route.
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