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A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
While an LLC isnt legally required for wholesale real estate, nor does it replace the need for due diligence and a strong understanding of real estate law, its potential benefits make it a worthy consideration for serious real estate investors.
8:27 12:58 Eight percent to cover closing cost commissions. And miscellaneous. And then subtract your wholesaleMoreEight percent to cover closing cost commissions. And miscellaneous. And then subtract your wholesale profit. To get your Buy price. Now.
Lack of Regulation : The wholesaling process is less regulated than traditional real estate transactions, which can lead to unethical practices. Misleading Marketing Low Offers Assignment of Contracts Lack of Transparency High Pressure Sales Tactics Failure to Close Negative Experiences
Some states, like California, have created real estate purchase agreements you can download and change. You can also get a template from PandaDoc, as well as benefiting from real estate contract management software functionality.

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For example, a wholesaler finds a motivated homeowner and gets a distressed property under contract for $200,000. Then, they market the property to their buyers list. A flipper sees potential and agrees to buy the home for $210,000.
Here are some common parts of a wholesale contract: Name and contact information of the buyer and current property owner (seller) Legal description of the property. Condition of premises. Purchase price and financing. Closing costs, who pays them, and when. Assignment clause to transfer property rights.

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