The Magic of the Instant Equity Exchange!

Have your Realtor send you properties that...
1.) Are in your market area.
2.) Have descriptions such as "Motivated Seller", Handy man", "Make Offer" etc...
3. Have been listed for 90 days or more.
* You can also use this strategy for Short Sales and REO properties.

I have my Agent make an offer on the property at 30% below the asking price. This ensures me enough room to make a wholesale fee.

If you get an offer accepted you will need 3 documents for this wholesale process know as Instant Equity Exchange (IEE). All documents must be signed by you and the seller. You can access these documents at http://www.deangraziosi.com/ieecontracts.

Investor Disclosure Agreement and Seller's Acknowledgment
This contract clearly explains to the seller that you are an investor and that you have intentions of selling the equity in the contract to another buyer and make a profit. This contract MUST be signed by both you and the seller.

Investor Purchase Agreement
This is your standard purchase agreement.
1. Your name as buyer
2. The Amount that you are paying for the property and the amount of your fee (ex. purchasing for 50k + fee 10k so 60k goes on the purchase agreement). The Investors Disclosure Agreement and Seller's Agreement discloses your fee. These contracts will ensure you get paid at settlement out of the purchase price.

Discharge of Agreement To Purchase
This is the last contract you will need. This is the contract that you will need to get signed once you have found a buyer. You will go to the seller and let them know you have a buyer. You have already disclosed to them your intentions of finding a buyer so they are not shocked when you ask them to sign this contract. At this point you are helping the seller and new buyer draft up a new purchase agreement between them. Once the new contract and the Discharge of Agreement to Purchase is signed you can rip up your original Purchase Agreement between you and the seller.

The Investors Disclosure Agreement and Seller's Acknowledgment along with the Discharge of Agreement to Purchase will act as your invoice to be paid at settlement. You will just hand these two documents to the closing Agent or Title Company and be paid your agreed amount at closing.

Written by Carol Stinson. All rights reserved.

For more on Instant Equity Exchange Read Dean Graziosi's New Book "Profit From Real Estate Right Now!"

Back to Real Wholesaling Main Page