The Power of Novation Contracts | Wholesale Real Estate

17 Apr 2023 · 7 min
6:42

In this 5‑minute promotional video, Tyson Smith, a three‑year real‑estate wholesaler, claims that his "Novation Contract" strategy—also called wholetailing—allows investors to earn multiple six‑figure incomes even in a down market without door‑knocking or cold‑calling. He explains that a novation contract lets a wholesaler contract a property, list it on the MLS, and sell it to retail buyers who can obtain bank financing, thereby capturing a higher fee than a traditional cash‑buyer assignment. Smith walks through a detailed Woodbine, New Jersey case study: a seller owed $55K, wanted $5K net; the property’s ARV was $120K, requiring $40K repairs. By listing the as‑is property for $95K, offering a $10K repair concession, and using a novation contract, the team sold the house, paid fees, and netted $27K while the seller received $60K. He then touts the scalability of the method—claiming 30+ deals per month, six‑figure months, and dozens of students achieving similar results (e.g., a student named John projected to close $171K in 45 days). The video ends with a strong call‑to‑action: book a coaching call to receive contracts, step‑by‑step guidance, weekly live coaching, and ongoing support.

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