Hi everyone! So I have been reading a lot about wholesaling and trying to get as much information as possible before I dive and I have a question? Once you have a house under contact, you then need to find a cash buyer to sell/assign the house to, correct? Let's say worse case scenario, you're unsuccessful at finding a buyer? What happens next?
Great question Marlana if you cancel the contract before you inspection period is over there is no repercussion. You can cancel the contract and receive your earnest money back, however if you do not cancel the contract by the time the inspection period is over then you loose the earnest money. I talk about this and other topics at equtiyrealestateblog.com
If you have any additional questions feel free to contact me.
"Enjoying the Journey"
@Marlana Elliott Valid concern. Here is my advice, instead of doing a standard wholesale (finding a property --> placing it under contract -->locating a buyer), do what people refer to as reverse wholesale (find a few investors/buyers and know what their criteria is --> go locate properties --> place under contract).
This will help you and the sellers. You can close on properties faster having buyers/investors ready. Home owners who are selling to you will be happy, because you will (most likely) not have to back out of buying. Think of it this way, when you have that property under contract, they can't sell it... which more often then not will frustrate sellers.
Hope this helps.
@Marlana Elliott I agree with Ross. And it is very important to know what your buyers are looking for. Try to come up with a good script to ask for your buyers "buy criteria" and log the details and contact information in a CRM like HighRise or the like. You will get a lot of training just by being open and honest when talking with the buyers. Don't waste their time with a "maybe" deal, get to know what they want and are looking for. Wholesaling, in my opinion, is all about helping the seller out of their situation and bringing value to their life. By locking down their property and not doing anything with it, your only furthering the complication or struggle they are going through. Network network network and all the cash buyers you need will come to you.
Let me know if I can help in anyway at all.
And it sounds like your taking steps to create a better life for yourself and others. Good work!
Become a real estate agent is basically the same job title has as wholesaler. You have nothing to lose, I'm not an agent but I see no difference from both. I had purchase from both an agent and wholesaler as a buyer and saw nothing different during the process except that wholesalers make 10-20% profit and agents make 3-6% but as a buyer, it didn't matter to me as long as the deal and numbers were right.
@Marlana Elliott That is a way to do it, but the more you pull out of deals the more you hurt your reputation so I'd say that there are repercussions if you're serious about building a business. Reverse wholesaling (as mentioned) and actually buying the contracts are ways to avoid it. Wholesaling often gets a bad rap because people a) don't know their numbers b) call non-deals deals and c) consistently back out. Just have to decide what type of investor you want to be. All the best!
Good Afternoon Marlana Elliot:
I read your post and I see you are looking for Cash Buyers! I do have tons of Cash Buyer even in Nevada. If interested, would you consider doing a Real Estate Joint Venture with me? You can even provide your own RE Joint Venture Contract if you fell comfortable. Let me know o.k.?
How are you doing and happy holidays. I am one of the biggest real estate agents here in Detroit for investment properties, not sure if your clients are looking to branch out. We have great Caps here and Detroit is the new up and coming spot for investments. If it's something you would be interested in please contact me and let's talk further.
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