Building assignment paperwork before the first deal, and where the marketing line actually sits
A scenario worth working through for anyone building the paper before the first deal, so that when a seller says yes nothing is improvised. Where a careful setup lands. A purchase agreement with the seller in the wholesaler's name, with the right to assign stated in its own clause rather than buried as and/or assigns on the buyer line. A separate one page disclosure the seller signs at the same time saying the wholesaler is buying as a principal for its own account and does not represent the seller, and that it intends to assign the contract for a fee that may exceed a broker commission. An assignment agreement to the end buyer that is separate from the purchase agreement. Deposit to a title company escrow, never to the wholesaler. The part that resists comfort is how a deal gets presented to buyers. Every piece of instruction says an unlicensed wholesaler markets the contract rather than the property. The words are clear. Where the line sits in practice is less clear. If the buyer list gets an email with a photo of the house, the address, an ARV estimate and a price, has the property been marketed? If the email instead says the sender holds an assignable contract on a 1,240 square foot ranch and the price to assume the position is X, is that materially different, or is it the same act with a different header? Nebraska and Kentucky both folded public marketing of a contract into their brokerage definitions, which reads as though the header does not save you there anyway. The decision on the desk: whether to build the whole operation around reverse wholesaling and get buyer commitments before locking anything up, which kills the public marketing problem and slows everything down.
