Wholesaling in Restricted Territories · The Cowboy Sales Process

To close more deals, you have to get people to commit to the process from the very beginning. This isn't about manipulation; it's about building trust and creating a clear, two-way street. A simple request for a small action can make a huge difference. By getting a prospect to perform a minor task, you're initiating a psychological process of commitment. This makes them more likely to follow through with bigger commitments later on.

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The Challenge: Wholesaling in "Illegal" Markets 🕵️‍♂️

Welcome to the cutting edge of real estate. We're going to tackle a problem many investors face: how to wholesale in markets where it's either restricted or outright illegal. Think of cities like Knoxville, Tennessee, where a simple contract assignment can land you in legal trouble.

So, here's the question: Have you ever felt limited by your local market's laws? What's the one thing holding you back from finding your next big deal?

Pause and reflect on your own experience. Write down your answers before moving on.

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1. The Solution: The Installment Contract 💡

The old way of doing things is dead. The new way? It's all about an installment contract (also known as a contract for deed or a land contract). This isn't just a workaround; it's a powerful tool that allows you to legally operate in restricted territories by giving you an equitable interest in the property.

Here's how it works:

You get a property under contract. But this isn't a simple purchase agreement. It's an installment contract that establishes you as a buyer with a real, legal interest.

You make a down payment. This is a small amount—it could be as little as $1,000. It shows your commitment and solidifies your legal ownership stake.

You own it (for now). With the installment contract, you have what's called equitable title. This means you don't have the deed yet, but you have the legal right to sell or transfer the property. .

You market the property. Since you have a legal ownership stake, you're not just assigning a contract; you're selling a property you have a vested interest in. This is the key difference that keeps you out of legal hot water.

You close the deal. You find your end buyer and complete a double close, where you legally purchase the property and then immediately sell it to them.

Think about a deal you've considered. How could an installment contract have changed the outcome? What's the biggest benefit you see in this approach?

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2. Crucial Considerations & Your Action Plan 📝

Before you dive in, you need to arm yourself with the right knowledge and a solid plan.

Find your legal expert: Do not attempt this without a real estate attorney in your market. They are your shield. Ask them: "Are installment contracts legal in my area? What specific language do I need to include to protect myself?"

Understand the legal details: Research usury laws in your state to ensure your contract doesn't violate rules about maximum interest rates. Your attorney will be your best resource here.

Choose your closing partner wisely: Not all title companies or closing attorneys are comfortable with these creative financing methods. Find one that specializes in investor transactions. Ask them directly: "Have you handled an installment contract or double close before?"

Your next step is to make a move. Take out a notebook or open a note on your phone and write down your first action item. Is it calling an attorney? Is it researching title companies? What is it?

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The Cowboy Marketer⁠

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