Signing PA when using Deal Funding

[Frederik Jukema]

Hi everyone!

I was wondering how to proceed in buying the property when you’re planning on (at least partially) having a partner invest the capital for you.
Is the formula plainly: “Sign ASAP, and worry about the money later”?

That’s all!
Thanks for your expertise and feedback!

Wishing you all a blessed day,
Fred

Topic

[John Pitkin]

#30264

Yes, this is how I’ve done it in the past.
After I find a funding partner, the signed contract is assigned to the funding partner.

[Frederik Jukema]

#30265

Hi John, thanks for your response!
So normally you’d sign the original PA under your name, and send a new one with your Partners name once you found a Deal Funder, is that correct?

Thanks a lot!
Wish you a great day
Fred

[John Pitkin]

#30266

I suppose it could be done that way. Maybe it depends on the state and the title company, but I’ve just used a simple memo to assign the contract, signed by all parties (partner/investor, original buyer, seller).

[Sid Dean]

#30371

When we have agreed on the price I normally tell the Seller I will probably close with a partner and that the name may change to a different business entity. Tell them I will still be in the deal as a partner and will not be wholesaling to another investor. I don’t go into funding etc. and rarely get any pushback. You are the manager so one of your duties is to stay involved in getting signed PA in the new name.

[Author]

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