How It Works
Clean Slate Properties has a marketing program to generate attractive real estate deals. At times, our ability to execute residential redevelopment projects in a timely manner may exceed the number of deals we have in our pipeline. Additionally, at times after we own a property, we may choose to sell the property without doing any work to the property. These are examples of situations where wholesaling makes sense. There are two primary types of wholesaling: A) After closing and then reselling without doing any work to the property or B) Prior to closing where the purchase contract is assigned to another buyer.
Example A – Wholesale After Closing
In this strategy, Clean Slate Properties completes an acquisition of a property from a seller. Instead of performing renovations or getting renters into the property, we resell the property to a different buyer, typically an investor, who may need a house to renovate or has a different intended use for the property such as a short-term rental.
If you are an investor looking for your next deal, please reach out to us and let us know your desired attributes of a project. If we are able to close on a deal meeting those requirements and the deal makes sense for all parties, we will be happy to help you.
Example B – Assignment of Purchase Contract
In this strategy, a party that has the intent to close a deal and the ability to close the deal, successfully negotiates and signs a purchase contract for a property. If the purchase contract language is correct, that party can then assign that contract, for a fee, to a 3rd party buyer. That 3rd party buyer then closes the deal with the original seller by fulfilling the terms of the purchase contract. In this example, the wholesaler is NOT buying or selling the property and never controls the property. The Wholesaler is selling the rights to the purchase contract.
This is a more complicated strategy, and if done incorrectly, could be illegal as parties assigning contracts could be considered to be practicing real estate without a license. Therefore, it is critical for people to work with knowledgeable and ethical companies! If done correctly, it is perfectly legal and results in a win-win-win scenario where the seller gets their property sold for the price they desired, the 3rd party buyer gets a property to either rehabilitate or keep as a rental, and the wholesaler gets a fee for assigning the contract. If you are a wholesaler, please reach out to Clean Slate Properties so we can be put on your buyer’s list as Clean Slate Properties has acquired multiple properties from wholesalers in this fashion!