What are Cash Buyer Lists, Wholesalers, and Joint Ventures?

A wholesale deal is when one party gets a house under contract and then during the auction. They assign that contract to another buyer. Most of the time there is a fee associated with this assignment. This is known as the assignment fee for the wholesale fee. Fees can run from $1,000 to $30,000 Plus.

The term subject to and assignment are the same thing. Both mean that the contract is being transferred to a new party to purchase the property.

The term subject to and assignment are the same thing. Both mean that the contract is being transferred to a new party to purchase the property.

A joint venture deal in real estate refers to one wholesaler who asks another person to help market the property. Sale of the house is done together with some of the prophets being split. We have done many joint venture deals for a wholesaler bringing a property to us and we send it out to our cash buyers list and find a buyer for the property. We charge a small fee which is a percentage of the assignment fee.

Yes they are 100% legal. It’s a very common practice and can be a great way to expand your business and income.

If you want to market to buyers directly then yes you need a cash buyers list. Alternatively, you can do a joint venture deal with someone else who has a good cash buyers list.

There is no specific size that is needed but what you really need is a cash buyers list with actual cash buyers on it. Many people will claim to have a large list but a lot of people on their list are not actual people who consider buying your property. The point is to go for quality not quantity in your cash buyers list.

A cash buyers list is an email database of people who buy properties with cash. Most people are going to be investors or Realtors who work with investors.

A cash buyer is a term given to a real estate investor who purchases properties with cash as opposed to using conventional or government backed loans. Most cash buyers like to close on property in two to three weeks. Conventional loans usually take 30 to 40 days.

Not all wholesale deals are foreclosure deals. The foreclosure sales are usually sold at a discount price making them more attractive to investors. Many wholesalers go after investment properties since they know there is a greater chance of selling them.

An off market deal is a property that is not being sold on the MLS with a real estate agent but it is available to purchase. The MLS is also known as the “open real estate market.”

No, most investors look for off market deals but many times a wholesalers will get a house that was not able to sell on the MLS under contract for a smaller lower price and then market it to a cash buyers list in order to wholesale it.

No license is needed but it does help to be a realtor so you can have access to the MLS data to pull comps and find out if what you are buying or selling is a good deal for you.

Insert this line into chapter 11 of the contract, “this contract may be assigned.”