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F, 27, any ATLiens in here?
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I get it. Theres risk that isn't talked about. At high level its the below:
Wholesaler (W) calls around and finds Seller (S) who wants to sell their house for 100k. W thinks the house could actually sell for 150k. W enters into a contract with S to buy their house at 100k and extends the due diligence period for as long as possible. W makes sure the contract is assignable. W then calls a bunch of buyers and says "this house is worth 150k. Ill assign you my interest in the purchase agreement for 120k" when W finds a Buyer (b) they assign the contract and then net the delta (which comes out at close)
Theres some more mechanics that go in but this is the basic. Worth noting that typically the end buyer doesn't know the contract price of the original offer agreement. Also wholesalers will typically try and get earnest money to be as low as possible in case they cant find a buyer and need to break the contract.
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Subject Expert
Long story short… it’s highly regulated in some states… and not nearly as simple as people portray it to be… I personally wouldn’t waste my time…
Subject Expert
There’s lots of YouTube videos about what this means.