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The art of wholesaling - Part 2
Wholesaling is alive and well in Central Florida. We just closed a deal last week for a 4 bed/2 bath block house in a working class neighborhood. It had a few last minute glitches, but it did close. Purchase price was $72,000 and the wholesale price to the investor was $81,000. That left $9,000 as an assignment fee. If you do the math, 9K/72K = 12.5%. If an average commission is around 6%, you can clearly see that the fee earned was over double on this deal. If all I did was list this property, I would have probably earned less than half of what I ended up earning from wholesaling it.
In this article I will explain how to put a property under contract and locate an end buyer.
The typical and definitely preferable way I structure these transactions is by assigning a contract. First of all I always use our standard Realtor contract which in Florida is called the FAR/BAR contract. I don't use contracts that these "gurus" create, and I definitely don't use contracts from some office supply store. Everybody (title companies, Realtors, lenders, etc.) is familiar with the standard Realtor contract and it is up to date with all the latest law changes and court cases, so why bother with ... more
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