BiggerPockets

Aaron,
I am not a wholesaler by trade, but an REO rehab flipper and I do, on occassion, wholesale some property. That said, it is always an REO and not a private and motivated homeowner/seller.

That said, you should be telling the homeowner only things that they need to know. As you may know, being a good listener and problem solver is key, so once you evaluate you have a truley motivated home seller and you know their problem, you must be able to find a solution and good negotiating techniques really come into play here.

What you should be telling them is that you can solve their problem and buy their home for X price and once you have agreed to terms and contract provisions, you get it under contract. Make sure you have in your purchase contract the right to assign and the right to inspections.

You should also already have a large database of all-cash buyers looking for the specific property you have contracted.

At this point, you then use your contract provisions of inspections to bring your home inspector (ALONG with your cash buyer) to view the interior. You should also get pictures of the interior prior to this inspection to show prospective buyers and ONLY if asked, you explain that you must take pictures of the existing condition so you can refer back upon your final walkthrough.

Never are you legally obligated to inform the seller that you are wholesaling the property so long as you have the assignemnt clause in the contract (or at least that it is not prohibitted).

Hope that helps.

I just did an option to wholesale a property. I did have a very motivated seller who wanted to basically walk away and who had equity but his life was in a spiral.

Initially, I told him exactly what I would do! I asked for his best price and made my decission in minutes after meeting him. I told him that the key to selling to some investors was being able to access the amount necessary to make repairs and make improvements and to identify the types of improvements needed for a particular property!

My seller can't do that. I can and for me to do that I can take an option to buy at his price and work the difference into a transaction with my buyer. The investors will need to see the property as well, we will need to inspect the property to see what it needs and a home inspector as well as an appraiser may need to get into the property. Whats the best time to do these inspections, mornings or afternoon? What about this Saturday about noon?

I had also explained that I would be making a some money on it as a fee, but that's the buisiness and my fee could be less than a Realtor fee depending on what I work up and who the end buyer will be. A motivated seller does not care!

The thing about disclosing what's going on instead of sneaking around is that you'll never get caught in a lie or in a surprise where the seller begins to think he's getting the shaft!

You have skills that perhaps many Realtors do not, it's not really a Realtor's job to fix things, get job cost estimates, line up contractors and make improvements to a property and either you or those you work with do! Your skills and expertise are worth something and instead of charging the seller a fee for himto pay in cash, you'll take the risk of earning your profit with an option.

Simple! Good luck

OK.EVERYONE THANKS FOR ADVICE.

I HAVE NO BANDIT SIGNS UP YET, I JUST ORDERED THEM. THE LEADS I'VE BEEN GETTING ARE FROM FOR SALE BY OWNER SIGNS THAT I See.( sorry about the caps )

here's another questions. A few times the seller asked me why don't I get a inspection before I put the property under contrac? What is a good counter for this ?

Do you all use your state realtor contract or do you use a one page?

thanks for your words.
Aaron

OK. So the best way to do this is get my signs up and drive looking for.vacant homes, research the absentee owner address and contact them. What is the best way to get absentee owner information. I was using realquest but it got to pricey.

The only people I contacted where for sale.by owner signs. Which were about 5 owners.

thanks for your words.
Aaron

Here's another question. A few times the seller asked me why don't I get a inspection before I put the property under contract? What is a good counter for this?

Your counter reply is, proper business practice is to finalize price and terms in writing (contract) First, then complete your due diligence (inspections). Otherwise, I could spend thousands of dollars in inspections and not have a deal.

I too use the state contract for purchases in most cases.

To comment on what Jon stated, calling FSBOS is one thing, attracting motivated sellers through bandit signs and other marketing means is a different animal. Many FSBOS are in fact what Jon described. But leads from investor marketing are often those that are not listed on the MLS or FSBO, they are potentails for good deals if you get enough of them and weed out the poor ones. Don't waste time trying to turn a deal into a deal. If it is not a deal at the start, it usually will not be at the end either.