Welcome to the Sanford REI Wholesaling and Lease Options Page! Let’s take a look at Wholesaling!  There are so many sites and articles on the internet regarding wholesaling in real estate. I urge you to research all you can get your hands on. An informed real estate investor is a smarter real estate investor! I honestly believe that there is no better tool to increase your wealth than investing in real estate and this includes wholesaling. Wholesaling is basically flipping paper rather than flipping the actual property.  You are assigning your interest in a property to another person or entity prior to closing.

A typical wholesaling scenario looks like this: The wholesaler signed a contract with a seller and under this contract, the wholesaler will buy the seller’s property for $80k.  Wholesaler estimates the property needs $40k in repairs but will sell for (ARV or After Repair Value) $190k once the repairs are made. Using his network of investors, he finds an investor to buy the property for $90k. He assigns the contract to this investor, who then may flip it for $190k.  The wholesaler makes a $10k profit without ever closing on the home ($90k what he got from the buyer – $80k he paid the seller). The investor makes out too because they paid $90k, they put in the $40k in repairs, had $20k in carry costs, commission, finance charges and closing costs. Investor made $40k profit.  Many Wholesalers just add a flat $5000 to every deal.  We do not ascribe to this.  If you are Wholesaling a $90k property versus a $900k property, there is always room to increase the Wholesale fee just as long as the investor buyer can make good money flipping it!

The key to wholesaling is to add a contingency to the original purchase contract that allows the wholesaler to back out of the deal if he is unable to find a buyer before the expected closing date. This limits the wholesaler’s risk.  However, if the seller will not agree to this contingency, then the Wholesaler could always keep the property and “flip it” themselves!   Wholesaling is similar to flipping, except that the time frame is much shorter and usually little to no repairs are made to the home by the wholesaler. As the wholesaler never actually purchases the home. Real estate wholesaling is much less risky than flipping, which can involve renovation costs and the other costs listed above. Real estate wholesaling also involves much less capital than flipping.

As I stated before, I look at it as “Flipping paper” but the main thing you need is a list of investors who are open to Wholesaling.

Having said that, if you are an Investor, Flipper or Wholesaler who wants to exchange contact information including email addresses for future wholesaling and flipping projects, please call John Sanford at (203) 721-4710 or email him right now at SanfordREI@gmail.com and exchange contact information right away!

Now let’s discuss Lease Options!  

A lease option is a type of contract used in both residential real estate. In a lease-option, a property owner and tenant agree that, at the end of a specified rental period for a given property, the renter has the option of purchasing the property. A lease option is different from a lease purchase contract, in that a lease purchase binds both parties to the sale, whereas in a lease-option the buyer has the option but the seller does not.  If your credit is not good enough to get pre-qualified to buy a home right now, NO WORRIES!!!  We can help!  We can refer you to a fantastic mortgage broker who can get you pre-qualified or tell you what you need to do to get pre-qualified to purchase a property.  If you cannot get pore-qualified at this time, you may choose a “Lease Option” on a home you may consider buying after a 1 year or 2 year Lease Option Agreement!  There are not many Lease Options available but we can find you one.  Having said that, if you are interested in seeing if you can get pre-qualified and/or have us find you a Lease Option, then please call John Sanford at (203) 721-4710 or email him right now at SanfordREI@gmail.com and let’s get things going for you!

If you are an investor who owns your property outright and would like to discuss a lease option with John, please call him at (203) 721-4710 or email him right now at SanfordREI@gmail.com.

Thank you!

John Sanford – Managing Member and Real Estate Broker of Sanford REI