Q.
How do I find other investors?
Ans. RE groups, NR University, Re Groups, Signs, Ads, and Realtors.
Q. I am not sure if it's legal to assign a contract. What do I need in the contract?
Ans. An assignment of contract is legal if done properly. You are assigning your right to close on the property to another person. You must have in the contract as the buyer or/and assigns also you must be aware of the Purchase and Sales Contract you are using. In some cases the cntract will say this is not an assignable contract you must have the seller int off on this area that it is assignable. I would have my attorney review your contract.
Q. What things do I need to consider when considering a deal for wholesale?
Ans. Know your exit strategy! How are you going to move property? You must do the math. You must look at the costs of the property, repairs, bringing payments current, and possibly holding costs. Look at the true property costs. Look at the property and never buy without either yourself or someone you trust looking at the property. Never use low numbers to make the deal look better then it really is.
Q. Does it make sense to get hard money on a deal?
Ans. It makes sense to get hard money if after the costs, you can make a profit. You want to have an exit strategy because long term costs of hard money is not cheap.
Q. What is illegal when flipping or wholesaling?
Ans. When you inflate a price of a property without doing anything in a short period. If you buy at market price, increase the price and sell it to someone above its true value. As a wholesaler you can buy the property at discount and sell below market price because it allows for a fix & flipper or rehabber to make improvements and make a profit from it.
