Structure of wholesaling!!!
Hi everyone;
I found BP about a month ago and have been on it since then almost every night for at least an hour. I am a beginner wholesaler like alot of poeple who are just starting with real estate investment.
Since this section has the most information in BP regarding wholesaling, I spend most of my time here and can't help but notice that a lot of people ask very similar questions without really looking up to see if it has been asked or answered before.
So from what I learned from BP and other sources I wanted to create a step by step structure of a wholesaling deal from beginning to the end.
I am not doing this because I believe I am an expert wholesaler (not even close, I am working on my first deal) but my goal is to have this list analyzed by experts, and investors, gurus, coaches here in BP and tell me if I misunderstood something, if I am missing a point, if I am not ready yet or etc. So hopefully it will help me and beginners like me to create road map to be successful in this venture.
Please, please correct me if I misunderstood a step, and missing the correct information
Here it comes;
1.) Educating your self about wholesaling and choosing your geographic area to focus on.
2.) Build your buyer's list and Power team (RE agent, title company, Lawyer).
I am not going into the details of how to do that since there are alot of great posts about that in the forum.
craig's list
facebook
bandit signs (where they are allowed)
preforeclosure lists
calling the number on "for rent signs"
networking, REI groups etc.
3.) Marketing materials
Business cards
car magnets
bandit signs
flyers
yellow mails
4.) Finding the property and being able to analyze it
a.)Finding the property:
online (craig's list etc)
auctions
distressed properties
house for sale by owner signs
pre-foreclosures
b.) Analyzing property:
How much for repairs?
what kind of repair?
Clear title?
how long to close?
ARV?
FMV?
5.) Negotiating the price and putting it under contract;
After doing above due diligence, negotiating the deal down to a price where you can add your assigment fee and still have the end buyer make money from the transaction.
-Be able to explain to the buyer who you are and what your intention is as a wholesaler.
-take a lot of pictures of the property
-have the buyer sign a option to purchase contract.
-Send your earnest money to your title company.
6.) Finding the end buyer.
Blast an e mail or call your buyers about the house.
If the interest is high, have an open house where you can have them come in the same day, (bidding war)
Have the buyer sign the assigment contract.
Try to collect a portion your assigment fee at signing the assigment contract.
Have the owner sign a purchase and sale contract with option to assing.
Send it all to the title company,
7.) Get your assigment fee at closings.
Any comments, criticism, or corrections are highly welcomed??????
Sorry for taking this much space.