This should just cover any questions I have...

If someone is willing to actually take the time to do it, can someone walk me through, step by step, the average wholesale deal? Starting with the moment a seller calls and is interested in selling their house.

I know there are plently of scenerios, but I'm looking for what the average, smooth deal would go like. Or how an easy deal has gone for you.

Edited: 06/26/2010 at 04:52AM

Jason Cummins

Real Estate Investor · Katy, Texas

430 posts
32 Influence
2 Awards

Icon_minipost Mar 14 '08, 10:51 AM

Hope this helps...

Seller calls you. You ask all the right questions. You determine that the seller is really motivated. You know his asking price and the least he would take on the house. Make an appointment to go see the house in person. If the deal is not even worth considering, hang it up, but if it has a chance, go from here.

You then perform your due dillegence, research the house, the ARV, taxes, neighborhood. Determine a good ARV at this point.

Then you go visit the house and look around, determine the fix up costs. Tell the seller you will have an offer in x amount of time.

Do your math here, take the good ARV, put in your numbers 70% ARV (or less) minus repairs and your assignment fee, this is your offer, offer even lower for some wiggle room.

Make your offer either by letter of intent or fill out a contract for them to sign.

They accept the offer, GREAT!!! Send the contract and any earnest money (if you are putting earnest money) to the title company and open title.

Now to get it sold.

Market your deal, send it to your buyers list, put it all over the internet, put out signs, however you market your deals.

Buyer calls or emails you, is interested. Show him the house. He wants to buy at the price you want.

Get him to sign the assignment contract with the amount you are assigning the contract to him. Give the buyer a copy of this contract and the contract between you and the buyer. Collect earnest money from the buyer as well!!!

Send the assignment contract to the title company along with seller and buyer's contact information. Tell the title company to close as soon as possible.

Pick up your check after closing.

This is wholesaling in its simplest form.

Edited: 06/26/2010 at 04:52AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
15 Awards

Icon_minipost Mar 14 '08, 10:45 PM

So, one more thing. Learn the law in your area. You're likely to be dealing with sellers who are in foreclosure. Some states have fairly onerous laws around what you can and can't do with such sellers, and specific forms and disclosures.

To get the phone to ring, you need to some type of marketing.

You also need to start building that buyers list early.

There are a number of posts here on specific aspects of this business. Do some reading here.

If you're really looking for a step-by-step, thorough process, you might consider someone's home study or course. It won't be cheap, buy can learn a lot, and have an organized process. If you think they're expensive, compare the price to a single course at a university or any sort of computer certification course.

Jon

Edited: 06/26/2010 at 04:52AM

Jon Holdman, Flying Phoenix LLC

Brian Christensen

Real Estate Investor · Elgin, IL

42 posts
1 Award

Icon_minipost Mar 15 '08, 12:40 AM

Thank you Jason...

Its been difficult because I've been picking up little bits of info here and there, and everytime I try to organize it, I get a new piece of info, or an updated version of what I knew before, and it gets complicated. I needed someone to simple out the process so that I could go in and add details as necessary.

But now I have a good flow chart to kind of go off of and just deal with the curveballs that come my way. I just need to try and get some potential sellers now.

Thanks again.

Edited: 06/26/2010 at 04:52AM