Question:

Urgent: Can I sell my LOI (Letter Of Intent) or Purchase Agreement To A Third Party For Profit?

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OK folks, I need some urgent help on this. I've found a great real estate deal that I can purchase and resell immediately but I do not have enough to fund the initial purchase.

If I get a letter of intent, purchase agreement or some other document that will hold the property for a set period of time, can I then sell my rights to that contract to a third party?

I'm not sure how any of this works but it is extremely important. If another contract is needed please let me know the name of it.

Cheers

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3 ANSWERS


  1. YES.

    This is called "Wholesaleing".

    It is difficult to find a title company who will help you to do this, they often will tell you it's illegal, but they are not lawyers.  Stewart Title is a great company.

    In all honesty, it takes a while to understand all the ins and outs of wholesaling, and you MUST understand it to be able to get a title company to work with you, but it's done all over the nation.  I do it in Texas, I use the TREC 20-8 form for it.  You MUST use the right contract for this kind of agreement, that's key.  You also MUST have an exit clause, in case your buyer backs out, you don't want to be liable for purchaing this property!!!

    I'm going to give you some reading to do- good luck!  Don't try to pull the trigger too fast- if you miss this deal, once you understand HOW to wholesale, you can create a thousand more.  

    read both answers on this page- keep scrolling:

    http://www.mortgagenewsdaily.com/wiki/Wh...

    use this site for EVERYTHING- I HIGHLY reccomend that you use the "free ebooks/audios" on the top left of the menu bar under "Investor Information".  There are all kinds of free audios that will help you understand what you are doing.  

    www.reiclub.com

    GOOD LUCK


  2. quite difficult , but if it is really a very good deal , we could do it togheter i work in real estate

    Regards

    LORENZO

  3. Almost all realty contracts are assignable unless specified otherwise. So yes you can sell it.  If the new buyers don't perform, you would be legally liable and you could lose earnest money or more.

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