Articles For Aspiring & Active Real Estate Investors
Real estate wholesaling is an investment technique that has recently become quite popular because –
With its rise in popularity, opponents have voiced concern, contending that real estate wholesalers are violating license law by performing actions that rise to a level that requires a Massachusetts real estate license.
This is simply not true. Wholesaling principles are present throughout a competitive marketplace, seen even in the local lemonade stand run by the neighbor’s kid. Wholesaling real...
Utah is one of America's most unique and fascinating states. It was admitted to the union as our 45th state in 1896, also making it one of our youngest states.
Fifty years prior to statehood, Mormons first settled Utah as part of their search for a promised land free from religious persecution. Today, Salt Lake City is the world headquarters of the Church of Jesus Christ of Latter-day Saints.
Mormons still make up about 70% of the state’s 3.2 million people and have considerable influence on many parts of the state and its institutions.
Utah is centrally located making it an important transit center, has a thriving economy, and a relatively young and economically stable population base.
For these reasons and many others, you may be asking yourself if wholesaling real estate is legal in Utah, and if so, what do you need to know if you’re considering this as an income-producing venture.
The real estate wholesaling business simply refers to an investment technique. A real estate wholesaler or investor enters into a purchase agreement (or contract of sale) that establishes for the buyer/wholesaler certain rights/obligations under the Doctrine of Equitable Interest or Equitable Conversion, but then chooses to sell these established rights to someone else, an end buyer, before the sale closes.
The difference between the original sale price for the investment property and the higher price paid by another buyer, often a cash buyer, is the earned assignment fee.
In other words, the buyer takes ‘equitable title’ or becomes the ‘equitable owner’ when the contract is fully executed. The time referenced in this regard is defined as the time between these two homebuying events -
Real Estate Wholesalers are investors who employ a technique in which they sign a purchase agreement (with the inclusion of an earnest money deposit) as the buyer. But then the wholesaler finds another party (often referred to as the end buyer) to purchase the real property (rental property, or otherwise) for a higher price – to wit, the profit earned as a middleman.
Wholesale houses purchased by real estate wholesalers tend to be below market value and offered by motivated sellers and those facing financial distress and uncertainty, like with the circumstances created by a pending foreclosure.
When investing in wholesale properties, the contract’s buyer receives this transferable right by way of the contract through the Principle of Equitable Conversion or Equitable Interest.
Because real estate investors may work several of these real estate transactions at once, they are referred to as 'wholesalers.'
Real estate wholesaling is similar to the fix and flip...
The real estate investing business attracts entrepreneurs far and wide because of its proven paths to generate wealth. Wholesaling real estate is an appealing strategy that many decide to take on because of its speed and simplicity in earning quick profits.
As a real estate wholesaler, the primary money-making tools in your business will be wholesale real estate contracts.
These contracts, as well as wholesaling in general, may seem intimidating at first but don’t you worry! We will give you all the insight you need to be successful in this business.
Whether you're a real estate investor buying deals from a wholesaler or a wholesaler selling contracts, it'll be beneficial to get familiar with what these wholesale real estate contracts are and what they do.
We hope you enjoy Wholesale Real Estate Contract: The Ultimate Guide! Use this menu to jump to the section of your choice:
An assignment of contract is when one party (the “assignor”) has a contract to which they have certain obligations, and transfers those contractual obligations to another party (known as the “assignee”).
In real estate, assigning contracts is an effective strategy to achieve an extremely high return on investment (ROI) for as little capital and risk as possible.
Click below and jump to your section of choice on the assignment of contract:
1. What Is An Assignment In Real Estate?
2. Is It Legal?
3. Why Use A Real Estate Assignment Contract?
4. What Is An Assignment Fee?
5. Who Buys Real Estate Contracts?
6. How To Assign A Contract?
7. How Do Wholesalers Get Paid?
8. The Real Estate Assignment Clause
9. What Is A Real Estate Assignment Contract?
10. Assignment of Contract Form
11. Assignment of Contract vs. Double Closing
12. Common Misconceptions
13. Final Thoughts
An assignment of contract in real estate is when...