Wholesaling & Novation Deal In Real Estate With Nick Perry & Jay Conner, The Private Money Authority
In real estate wholesaling, a wholesaler contracts a home with a seller, then finds an interested party to buy it. The wholesaler contracts the home with a buyer to a higher price than with the seller and keeps the difference as a profit. Novation in real estate is usually used in regards to the transfer of complex property leases and similar cases.
Watch this short video, as Nick Perry guest of Jay Conner explains more about wholesaling and novation in real estate.
Nick is the Owner/Founder/Executive Chairman of Want To Sell Now. The largest nationwide wholesaling company in the United States is based out of Austin TX.
He owns a fleet of semi-trucks multiple eCommerce businesses and invests in multiple companies and commercial real estate. He also owns the 7 Figure Cartel mastermind that gets people quickly through the hurdles to become multiple 7 figure real estate investors.
Nick grew up in Northern Virginia and spent the first 5 years of my career in Personal Training before moving to Austin TX where he now resides. He moved to Austin with no job, network, and very little money. Soon as he got to Austin, he decided he would do whatever it took to be successful in real estate in pursuit of new opportunities.
He didn’t come easy. It took him 11 months to get his first deal but he did not give up. Nick worked 18 hours a day 7 days a week. He got a six-figure sales job at Indeed.com while he was building my real estate business.
Nick devoted all of his sales commissions and time outside of my 9-5 to building my real estate business until he was able to go full-time. As soon as he went full-time, he quickly scaled his real estate company to where it is now in less than 3 years. He now has 8 streams of income and is working on creating more.
For more valuable information click on this link and watch the complete episode: https://youtu.be/h1mC4vDnY-s – “Become A 7-Figure Real Estate Investor with Nick Perry and Jay Conner”
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Real Estate Investing With Jay Conner, The Private Money Authority
Jay Conner:
So, about five contracts a day, day in and day out. Let’s make sure everybody understands what we mean when we say “wholesaling.” Different people have different definitions of wholesaling. So what’s your definition of wholesaling? How does that work?
Nick Perry:
Wholesaling is, you’re going and you’re contracting a property. Wholesaling, you could literally wholesale any item, but we’ll just use real estate for the example. So you negotiate with a motivated seller to get a property under contract for a certain amount that you can turn around and give to an investor for a higher amount. So easy numbers, you’ve got a $100,000 property. It’s worth a hundred grand. You get the seller to agree to let you have that property and put it under contract for $65,000. And then you turn around and you find a fix-and-flipper or an investor that wants to buy that property. And they’ll buy it for $75,000. Well, when you get a contract with both parties and turn them into the title company, the title company will give you a $10,000 check, or however much the difference is.
Jay Conner:
Right. So would you say wholesaling in your company is sort of synonymous with assigning or collecting assignment fees?
Nick Perry:
We collect a lot of assignment fees, but we’re not just a one-trick pony either. We do “subject to” deals. I hold a lot of rentals in my portfolio, as well. We do novations. So we’re always looking for different exit strategies to monetize more deals.
Jay Conner:
Explain to everybody what a novation is. What’s a novation deal?
Nick Perry:
So a novation deal is basically if you have a seller that wants close to retail, their house is in pretty good shape, right? You can go ahead and contract that property. Say they want thousands. We’ll use the $100,000 example again. You got a house that’s a hundred and the seller doesn’t want to take a dime less than 90. Well, you put that property under contract with a novation agreement at 90,000, and that novation agreement will allow you to actually list that property full retail. Sometimes there are minor repairs that you do as part of the novation agreement. You may go in and do some carpet or paint or landscaping, but you’re not doing any heavy remodels. These are properties that are in fairly good condition and you can put them and list them and get full retail from a conventional buyer at the end.
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