Monday, June 05, 2006

Wholesaling Assignment Tips

When wholesaling a deal via assignment, here a few tips:

* Must be a cash buyer! (have them show proof of funds)

* Assignment fee is paid prior to closing (or can be escrowed in advance)

* Use corporation (S, C, or LLC) as the assignee if possible - for tax purposes

* Two critical clauses in your contract with the seller should be:

[1] Liquidated Damages (whatever you gave upfront is full damages if you back out);
[2] Inspection or partner approval clause (use one, but not both).

Links to this post:

Create a Link

<< Home