BiggerPockets

I would suggest that you read all of the posts in the wholesale forum... It seems like you may not quite fully understand the idea of wholesaling...

When you wholesale, generally what is done is you would locate and obtain an accepted offer on a house that is a deal...

Then, for and assignment fee, sells or assigns that contract to another party that will buy the property.

With this being the case, your credit or ability to get a loan does not come into play, as you will not need a loan.

This is one reason why some people start in wholesaling... It takes almost no money, and no loan... Just some time and the ability to find great deals, and to get an offer accepted.

Good Luck!

Hey Ren,
What part of country are you in?

When you wholesale a property, you actually have a contract. You either double close on the property, or assign the purchase contract. When bird-dogging, you find deals and then hand them over. You're not actually a principal to the transaction.

Jon

In your hometown join your local REI club and network. I truly believe wholesaling you have to be a people person or just down right " motivated" to build client list first and then start searching for homes.

Also, by joining a club, you get to meet other wholesalers exchanging of information or form a team.

Create list through email and take pictures of properties and short info and blast the info to your clients.

Don't forget BUSINESS CARDSSSSSSSSSSSSS

First, I would HIGHLY recommend that you read through the archives in the Wholesaling forum.

As for your questions,

1) Remember that price overcomes all objections.

If you are selling the property where the buyer can profit $15,000 would they be willing to pay you $5,000? Would you pay $5,000 to make $15,000? I know I would, and any investor in their right mind would too. Now that doesn't mean they won't try to negotiate with you, but they'd be a fool to walk away from a REAL deal just because you are making a profit on it. Keep in mind you will meet some fools.

Remember that the buyer wouldn't have saved thousands of dollars, they would have never known about the deal.

Now part of this whole issue is why I prefer to double close. On a double closing the buyer and seller don't know what you're selling it for or normally that you are even reselling it.

2) On an assignment, you just pick up a check. On a double closing, yes, you would go to the closing.

3) Yes the deal can work, but it has more risk of falling apart. In a situation like this, I make sure that my buyer understands that I fully expect him to close either way. I also have at least $1,000 earnest money from the buyer, so if the deal falls through I keep it.

4) On an assignment, normally you would want to get some or all of the assignment upfront. The balance, if any. would be paid at closing. On a double closing, other than your earnest money you would get paid at closing.

5) On an assignment, normally I will prep the seller that someone else might be buying the property, but I always reaffirm that the seller has nothing to worry about whether my buyer buys it or not because I will either way. Normally, the seller is not going to care. They just want to get their money.

The different parties to the transaction normally sign at different times, so it really is not a big issue that they will see someone else at the closing. Now if its an assignment they may notice a different name on the HUD 1 closing statement and the assignment fee will be on there also. So that may come up as an issue. Some title agents will prepare a one sided HUD 1 that doesn't show the buyers side to the seller and the sellers side to the buyer. Either way the contract is still legal and binding, and the seller has a legal requirement to sell the property under that contract whether you assigned it or not.

Again a double closing insulates this information from the buyer and the seller.

Just to clarify for you...

On an " assignment" or a " double close" ... you do not need a loan in either case.

I've never heard of paying for closing costs out of pocket on a double closing. The thing is that the title company is about to write you a check for your profits, and it would seem very odd why they wouldn't just take it out of your profits. Doesn't seem to make any logical sense why any title company would do that. Its more paperwork and tracking for the title company.

I've done about 40 or 50 double closings, and I have never had to pay out a dime out of pocket.

Ren, I would recommend you take some time and go through the Wholesaling Forum archives. A lot of the gaps will fill in for you just looking at some of the past posts.

google searches for me are one of the best ways to find information, a good website is http://awaytogrow1.wordpress.com/2007/03/13/doublecloseorassign/
hope that helps

Thanks a million!

Now . . . back to wholesaling . . .