A novation contract lets real estate investors sell properties to retail buyers without closing on them first. Unlike assignment deals to cash buyers, novation lets you tap retail buyers with bank financing and bigger budgets, so you capture a larger fee.
The Novation Contract is an agreement that's going to allow you to wholetail all of your deals without ever having to close on them. What wholetailing means for you is that you are now able to contract a property and instead of assigning it before closing, you can list it on the real estate market without doing any renovations. Now, this is going to allow you to collect a much larger fee than assigning the deal to a cash buyer, because when you use our method, you're actually able to sell the property to retail buyers. The big difference is that retail buyers are able to use bank financing, aka they have easier access to more money, whereas cash buyers are limited to cash or hard money. Plus, retail buyers aren't looking to flip the property for a profit. They're looking for a house to live in.
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