Wholesaling works because a purchase contract is an asset you can sell. You sign a contract to buy the house, then assign your right to buy it to an end buyer for a fee. Done right, it is simple and clean.
The two documents
- The purchase agreement between you and the seller, with an assignment clause and a realistic closing window.
- The assignment agreement between you and your buyer, which transfers your contract for the assignment fee.
Protect yourself
- Include an inspection or due-diligence period so you can exit if the deal is not what you thought.
- Be transparent. Sellers and buyers should understand what you are doing; hidden games are how wholesalers get into trouble.
- Know your state's rules — some require specific disclosures for assigned contracts.
When in doubt
This is where a real-estate attorney earns their fee. A template is a starting point, not legal advice, and the cost of getting a contract reviewed is trivial next to the cost of a deal that blows up at closing.