[import]

Posted by Tricia on June 14, 2006 at 21:38:06:

Hi,

I am a newbie and have been doing a lot of research on REI. I am particularly
interested in flipping properties at wholesale price. The REI course that I have
walks me through having the owner of the home sign a contract for a specific
price. This contract will disclose that I am a realestate investor and may
assign the contract to a third party. It also states that I can back out of the
deal if my partner does not agree with the purchase (this is the "exit" strategy
in case I can not find an assignee). I then find an assignee who is willing to
purchase the home for a set price. Again - the contract has all the disclosures
such as the fact that I may not have title to the property at time of closing. It
is my understanding that at closing I get the difference between sellers and
buyers price.

I have the following questions based on this understanding:

1. Why would I need an agreement where I would say that I would l buy the
house (or assign it)? Can I not just tell the seller that I will look for buyer
willing to purchase his home? Get it in writing and register it at the local
courthouse?

2. Is the above doable in PA/NJ?? How do I collect my assignment fee at
closing? A double closing is not something that people are familiar with doing
and have even told me is illegal.

Thanks in advance for all your advice.

Best

Tricia