TOOLS & RESOURCES

Assignment of Agreement for Purchase and Sale of Real Estate

Wholesale Email Template

Contractor Survival Guide


REHAB/WHOLESALE THE PROPERTY

Now that you have the property under contract it's time to rehab or wholesale the property. 

If you are wholesaling the property you'll be assigning the contract over to another investor. I've got a video below talking you through how to use the Assignment of Purchase and Sales Agreement. 

If you are rehabbing the property, then it's time to get the project in order and start finding, hiring, and managing contractors. I'll go more into that below. 

ASSIGNMENT OF AGREEMENT FOR
PURCHASE AND SALE OF REAL ESTATE

 

Let's face it, sometimes you can't always get the resources lined up that you need to rehab a property. That's where wholesaling can come in handy.

Wholesaling is the process where you find a property, oftentimes in disrepair, then get it under contract for below market value and instead of rehabbing it, you sell it to another investor. 

There are two ways to wholesale a property. 

1. Double Close on the Property

This is the most straight forward of the two. You get the property under contract, close on it, add a mark-up or wholesaler fee and then re-sell that property to another buyer. 

2. Assign the Contract

If you don't have the resources to close on the property, you can assign the contract to another buyer and add a wholesale fee on for yourself. To do this, you would use the Assignment of Agreement for Purchase and Sale of Real Estate above and would work with the title company to do it the right way. 

Friend and attorney Jeff Watson and I talk through the assignment process in the video above. 

 

FIND CONTRACTORS

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The first step in rehabbing a property is to find contractors. Like private lenders, contractors are something you never stop marketing for. 

You should be building your contractor list from day one and vetting them thoroughly.

The problem most new real estate entrepreneurs have is they trust any contractor referred to them and/or they work with friends and family they know. 

You should have system for finding and hiring contractors. Our Contractor Survival Guide is designed to help you get yours started.

GENERATE SCOPE OF WORK

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After you've started the closing process on a property you should start thinking about the Scope of Work.

The SOW outlines everything that you want done on the property, all the items that are to be used, and who is to do all the work. 

If you miss an item or a repair in this document and don't have it signed off on by the contractor, it could cost you extra later on to have the work done. 

 

 

 GET DOCUMENTS SIGNED

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The are 6 documents that you are going to want to get signed on each and every project. They are essential documents that will protect you in the event that something goes wrong with a contractor. You can download a sample set of them above.

They are the...

  • Independent Contractor Agreement
  • Insurance Indemnification Agreement
  • Signed Scope of Work (SOW)
  • Payment Schedule
  • W-9
  • Unconditional Lien Waiver 

Each document is designed to protect you in a different way. I walk more about them in the Contractor Survival Guide. 

MANAGE THE PROJECT

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Now that the project has started, it's time to manage it. 

If you hired a general contractor, the good news is, they will handle the majority of the day-to-day management. However, that doesn't mean you want to check out during the process. 

You should be communicating with your contractor early and often in the process. It's good to lay out a communication plan with your contractors prior to start the work. 

That way they know what is expected of them and how often they will hear from you. If they are contractors you haven't worked with before or if you are new, check in more often than not. 

 


DISCLAIMER

These documents and information contained herein are designed to provide accurate and authoritative information with regard to the subject matter being covered. It is given with the understanding that the authors and distributors are not engaged in providing legal, accounting, real estate or other professional advice.

If legal advice or other expert or professional assistance is required, the services of a competent professional person licensed in your area should be sought.