How to Wholesale a Deal?

19 Replies

So I am going to get my very first deal under contract tomorrow and I plan on either wholesaling it or assigning the contract to someone else. My questions are how to show my project to other wholesalers? Do I just show them my contract and start emailing it to other wholesalers? Also if I decided to assign it to someone do I have to create an addendum or assign agreement and have them sign and agree to pay me a certain fee?

Any help will be very appreciated, thank you BP...

Wholesaling is as difficult as you want to make it. I would first check out your state laws concerning contract assignment. I personally wouldn't email them your contract. You should be confident in telling them you have a property under contract at a specific price and they'll believe you. 

Also, the approach I would take personally is to never disclose what you purchased the property for. Put together a brief presentation which quickly shows the selling price of your property, and 3 comparable properties which have sold within the past 3 months. This will give an investor an idea of the ARV of the property.

Wholesale deals ideally should be purchased around 65-70% ARV and wholesaled around 80% ARV. Good Luck!!

Oooh, how exciting! This is so where I want to be soon, I envy you!

Ok, Im a newbie, so please correct me if I am wrong anyone.

So my plan of action if you are going to wholesale it (as this is what I am looking to do and have researched) is find some cash buyers on here or even on craigslist because there are heaps of buyers advertising on there in all local areas. 

Find out roughly what the ARV is on the property

Find out how much the repairs going to be worth

Organize a few dates and times for buyers to go to inspect the property

Contact your potential buyers and let them know all of these, and voila, you can now wholesale your property to a keen buyer.

Good luck, let us know how you go!

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If you are planning on assigning the contract, first the buyer will probably want to see the contract because they would be filling your shoes and will need to agree to any contingencies in your contract. But I wouldn't just email it out, have a cleaned up version (no personal info) ready for if a buyer wants to see it. Also, when assigning a contract the buyer will see what you're making. You will need to fill out and sign an Assignment of Contract which lists your fee.  Secondly, if the house is any type of foreclosure you will probably not be able to assign it. This is where a double closing comes in.  Personally, I have a ConstantContact account, and whenever I have a deal I put together a pretty email with pics, numbers and comps. I also instruct the buyers to contact me directly via phone. I found my buyers through craigslist and here in the BiggerPockets pro marketplace!

@Matt Mortensen

Thank you for responding.

That is a great idea I never thought about looking up state laws concerning contract assignment. I will definitely have to research that. Thank you for your thought provoking advice. I appreciate it.

@Fiona S.

Yes that is about the size of it. I don't think you can schedule time and days to run other buyers around the property to inspect it. They do that once they have it under contract during there inspection period. Thank you for the encouragement I'll let you know how it goes.

@Chelsea Tustison

Thank you for giving me some advice on this. I will make sure I have an assignment agreement if I go that way. I have put together an email with a description and comps but I didn't do the pictures. I'll have to remember to do that next time. I was wondering if you could give me more insight on how to put together a double closing. Also how do you search for buyers on Craigslist?

Thank you for your time and advice. 

Originally posted by @Brandon W. :

@Chelsea Tustison

Thank you for giving me some advice on this. I will make sure I have an assignment agreement if I go that way. I have put together an email with a description and comps but I didn't do the pictures. I'll have to remember to do that next time. I was wondering if you could give me more insight on how to put together a double closing. Also how do you search for buyers on Craigslist?

Thank you for your time and advice. 

I honestly just do a search for "cash" on craigslist about once a week, and I've come up with a lot of Cash Buyers, or you could search for "investor". They make themselves pretty easy to find. 

Hi, just reading your post again, I would not be contacting other wholesalers about this, as you are the wholesaler and they will be the end buyer. I just went to craigslist in my area and on every few pages, there is an advert for cash buyers.

Also, if you are a Pro member on BP, you could advertise in in the Marketplace. I see a whole lot of success going on in there.

As for doing a double close, I would first find out if it is legal in your state, as it is not legal everywhere.

Hope all is going well.

@Fiona S.

The reason I am contacting other wholesalers is because if the deals is good and can sell quick they don't mind investing there time for a quick 5k. I don't know everything in this city ( because I'm new to Real Estate ) but they do and they already have a large buyers list which again is something I don't have. So I think its a great idea to go to other wholesalers even if I am wholesaling this deal.

Thank you I will look into the Pro Membership. Double close is legal in Arizona, I actually didn't know it was Illegal in other states. Do you know which ones by chance because I am looking to do business in other states, more towards the East Coast.

Thank you for your help.

don't assume other wholesalers know what their doing or already have buyers. 

Buyers are one of the easiest things to find. Focus your efforts on locking up great deals and you'll have buyers. There is at least a handful of active buyers here on BP  from Arizona. 

From my understanding, it is illegal to double close in WA. Thats all i know, because that is the State I am researching.

Good luck!

@Nick J.

Thank you for the advice. I will be careful and keep my eyes and ears open when dealing with wholesalers.

I will try reaching out to Buyers on BP.

Thank you for responding to my post. Any other advice will be appreciated.

@Fiona S.

Okay thank you for the help. I'll stay away from doing double closes in Washington then.

Originally posted by @Brandon Whitaker:

@Nick J.

Thank you for the advice. I will be careful and keep my eyes and ears open when dealing with wholesalers.

I will try reaching out to Buyers on BP.

Thank you for responding to my post. Any other advice will be appreciated.

Fiona - please point is all to the law where it's illegal to double close?

Thanks @Terry Royce for questioning. That was something I have learnt through people on here, but obviously may not be the case. Please clarify if I am correct or not... anyone? I/we are still in the learning stages and would love to learn how to do all this legally.

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