PARTNER WITH US
Need Help with a Wholesale or Novation Deal? Send It Over, and Let's Split the Profits 50/50
READY TO 3X YOUR AVERAGE ASSIGNMENT FEE?
You’ve taken massive action to find a motivated seller—now let us help you maximize your assignment fee. If the house is in livable condition, why settle for a cash buyer who will lowball you?
We can use the novation strategy to help you maximize your assignment fee by selling to retail buyer. (without hard money lenders , no taking over the deed, no seller finance or actually owning the property!! )
We recently helped our last JV partner with a lead where he was about throw away. We stepped in, used the novation strategy to sell to a retail buyer, and helped him net a $40,000 assignment fee!!!
We’ll handled everything—pitching novations to the seller, getting paperwork, hiring top realtors, and getting the deal to the finish line.
Check out the HUD below:
Wholesaling vs. Novation: What's the Difference?
Wholesaling: You get paid by assigning your rights of the purchase and sale contract to a cash buyer investor. You collect an assignment fee from a cash buyer. It works best for properties in poor condition or with highly motivated sellers who need to sell fast.
Novations: You collect a fee by replacing one contract with another. Perfect for move-in-ready or livable properties. You collect an assignment fee novating to a retail buyer..
Understanding Property Conditions: Wholesale vs. Novation
Below, you’ll see the most common conditions for wholesale deals and the typical conditions for novations. This will help you train your eyes and ears to spot the differences and know exactly what to look for every time!
Typical Wholesale Deal:
Typical Novation Deal:
Why would the seller not just list it themselves?
If the seller is NOT motivated and wants full retail value, they’ll likely just hire a realtor.
Sellers who choose the novation option are typically motivated and want a fair price without any out-of-pocket expenses—and that’s exactly what we can offer.
If the house is in good condition, I explain how we partner to get them the a higher price without any out-of-pocket expenses.
Will the seller freak out since we are putting the house on the market?
With a novation, we hire a TOP STAR realtor to list the property on the MLS and find a retail buyer.
This means the property will show up on platforms like Zillow at a higher price than the seller agreed to.
During our conversation with the seller, we clearly outline the process, including that the property will be listed on the open market, and we ensure they’re comfortable with it.
If the seller isn’t OK with this, we simply don’t proceed.
However, the sellers who are onboard with it never give us push back down the line or cause issues later because we set the proper expectations making them understand we’re taking care of everything—hiring the realtor, negotiations, repairs, and bringing the buyer—while they enjoy a complete no out of pocket experience..
Will a property owner really accept a novation??
You’d be surprised how many motivated sellers will let an investor handle the sale of their property. The truth is, 98% of sellers aren’t in the real estate industry, so they don’t know they could get more or sometimes they simply don’t care. Plus the truth is we deal with everything. We handle the buyer repairs and concerns. Seller never has any upfront cost.
Is it possible to assign my purchase and sale to a retail buyer and collect an assignment fee?
You can’t assign your purchase and sale contract to a retail buyers and collect an assignment fee because retail buyers use bank financing, and their lenders won’t approve the assignment fee.
We use a strategy called novation, where we essentially replace the original contract with a new one, allowing us to sell the property to the retail buyer while still collecting an "assignment fee".
How are we splitting the repair cost? (IF THERE ARE ANY)
If you'd like to split the novation fee 50/50 then we can share repair costs 50/50!!!
If you can’t cover minor buyer-required repairs, that’s okay—Nataly can handle the costs. In that case, the profit split will be 40% for you and 60% for Nataly, plus she’ll be reimbursed for the repair costs. For example, if Nataly spends $2,000 on repairs, she’ll get that back first, then take 60% of the remaining profit.
Understanding The Key Differences: Wholesale vs. Novation
Wholesaling
Any condition
We welcome all property conditions. Full rehabs.
30 Day closing
1-3 Walkthroughs
Assign to a cash buyer or investor
Wholesale offer price is around 55% - 60% of ARV
The Average wholesale deal fee is $10,000
Novation
Livable condition or better!
We can easily handle roof repairs, HVAC repairs, landscaping, and cleanouts! These repairs won’t disqualify the property from a novation deal.
60 day closing
Longer closing date but they get more money
5-9 Walkthroughs
Seller needs to be okay with opening and closing the door for prospective buyers
Novate to a retail buyer
AS-IS VALUE x 0.90 - $30,000 = Novation MAO
Look at what houses sold for in similar condiition. Same process of looking for ARV but instead of focusing on just flips and renovated comps, you look at as-is comps. Properties that are similar condition as the subject property.
Utilizing the Novation exit strategy will help you 3x your deals per month. While lowering your cost per deal. Getting a bigger return on all your marketing channels!!!
What is the Novation Formula?
As-is value
x 0.90
- $30,000 profit
_______________
Novation MAO
What is the Wholesale Formula?
After Repair Value (ARV)
x 0.89 (commissions and closing cost)
-Rehab Cost
-Assignment Fee
-Buyer profit (15% minimum)
_____________________
Wholesale MAO
Got the Perfect Property for a Novation? Here’s What to Do!
Collect 4 Pillars: Get the condition, motivation, timeline, and price.
Keep It Simple: Tell the seller, "I’ll run some numbers and get back to you."
Submit the Lead: Log in to www.jv4real.com and add the details.
We’ll Handle It: We’ll review, contact you first, pitch novations, get it under contract and take care of all the legwork of getting it sold!
You’ve taken massive action to find a motivated seller—now let us help you maximize your assignment fee. If the house is in great condition, why settle for a cash buyer who will lowball you?
My team will take care of everything—explaining novations, getting the deal under contract, finding realtors, and handling all the tricky paperwork.
Big Tip: Don't Mention Novations or Any Program to the Seller—Just Contact Us ASAP and Let Us Do the Talking!
Unlock Bigger Assignment Fees with Novations!
Don’t leave money on the table by wholesaling everything...
If you’ve got a motivated seller with a livable property or better, let get it sold to a the highest paying buyer, retail buyer!!!
My team will take care of everything—explaining novations, getting the deal under contract, finding realtors, and handling all the tricky paperwork.
Stop giving up on deals! If a seller rejects your cash offer and the house is in good shape, don’t walk away—we have a better solution.We can help the seller get more money by selling to a retail buyer, and you’ll maximize your assignment fee. Send me your leads, and let’s make more money together!
Big Tip: Don't Mention Novations or Any Program to the Seller—Just Contact Us ASAP and Let Us Do the Talking!
How it works?
Create An Account
To get started, click the 'Login' button in the top right corner of the page. Next, select 'Create an Account.' Enter your email and password. These will be your login credentials for the portal. After creating your account, make sure to refresh the entire page before logging in.
Upload Your Hot Leads to Nataly's CRM
After speaking with a motivated seller, please gather all relevant information, including the property's condition, the seller's motivation, timeline, and price. Provide all this information when uploading to Nataly's CRM. This will help us determine if it fits as a novation or wholesale deal, allowing us both to collect the largest assignment fee.
Nataly Will Call Your Seller and Get the Deal Under Contract
Consider it done!
Nataly Will Handle Dispo and Sell the Deal to a Buyer
Nataly Will Handle Dispo and Sell the Deal to a Buyer, whether it’s a novation to a retail buyer or a wholesale deal to an investor for a fixer-upper. As a pro, Nataly's Team will secure the property under contract at the right price and determine the best exit strategy to maximize our profits on each deal. Sit Back, Relax, and Wait to Collect Your Check!