Is The Buyer Legitimate?
I hope this beautiful Fall season is treating you and your family well! In the spirit of providing information to our amazing community, I wanted to highlight some of our recent transaction experiences and illuminate another facet of the real estate landscape. This week, we dive into the topic of real estate wholesaling. We discuss real estate wholesaling and what to look for should prospective wholesaler buyers solicit you.
Some Signs That You're Dealing With A Wholesaler
When discussing purchasing your property they may mention business partners, a network of buyers, or the assignment of the agreement/contract.
If you entertain an offer from a wholesaler, the offer may have "and/or assigns, affiliates, business partners" or any variants of this language in the buyer party's name.
The contract will typically mention assignment one to several times.
Yes, It's Legal
In Texas, there are few protections for home sellers from these types of parties as they can legally act asrealestatebuyer intermediaries without a license or any oversight freely selling and assigning the contract the homeowner enters into. They also don't always tell the truth about their intentions. When I get hints of a wholesaling intention, I quiz the party to see if I can get an honest disclosure. About 50% of the time I do, while the other 50% of the time they will provide a dodgy answer.
I know some honest wholesalers disclose everything on both sides between the seller and the buyer, as they should, but be wary. Many wholesalers are learning about this "opportunity" and how to do it on Youtube. This means there are no barriers to entry, it doesn't require actual capital, and they never actually close on the property or take title themselves.
Learn more about Wholesaling Watch-Outs in the video above . Remember, if you find yourself in distress regarding your home, there are many ways to seek assistance through the help of licensed professionals who will represent your best interests. If you have a contract question, we can refer you to a real estate attorney.
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(214) 310-1495
Yourfriend and favorite REALTOR® team -
Megan Johnson, Broker-REALTOR®
Modernest Realty Team
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