A Step by Step Guide to Real Estate Novation Deals

We are cutting through the jargon and confusion to deliver a clear, actionable playbook for investors of all levels. There is no theory here—only a step-by-step guide to execution.

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Part 1: The Core Concept & Mindset

Forget what you think you know about wholesaling or double closes for a moment. The strategy discussed is a specific type of novation that functions as a sequential, two-part closing.

The entire strategy hinges on one core principle: You are putting the property under contract with the intent to close on it yourself. You are not merely a middleman assigning a contract; you are taking temporary but total control of the asset. This mindset shift is critical.

Part 2: The Step-by-Step Execution Plan

This is the ground-level process. Follow these steps without deviation.

Execution Plan

Execution Plan

Step 1: Secure the Asset (The "A-to-B" Contract)

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Step 2: Go to Market Immediately

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Step 3: Lock In Your End Buyer (The "B-to-C" Contract)

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Step 4: Execute "Closing 1" (You Buy the Property)

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Step 5: Execute "Closing 2" (You Sell the Property)

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Part 3: Key Takeaways & Final Analysis

This is not a standard wholesale assignment. It is a sophisticated strategy that requires precision.

Two Distinct Closings: You are performing two separate, back-to-back closings. This is not one transaction.

The Funding Bridge: Private/hard money is not optional; it is the essential tool that enables you to take title, clear the seller's debt, and deliver a clean property to the end buyer.

Risk Mitigation is Mandatory: Do not proceed to Closing 1 until your End Buyer's earnest money is non-refundable. This is your primary safeguard.

Profit & Control: This method gives you far more control over the transaction than a simple assignment and typically allows for a significantly larger profit spread, as you are capturing the full retail value of the property.

Novations work when you have the right leads—Prexium brings them straight to yo. Start today 👉

The Cowboy Marketer⁠

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