Help a new investor get into wholesaling
Hey guys, I currently have a very strong background building houses, and have never been apart of a real estate transaction. I am wanting to get into wholesaling in order to make some quick money to pay down the mortgages on our rentals. I am having some trouble wrapping my brain around a few concepts. I have searched for answers but can't seem to find my exact questions. I have read Phil Pustejovsky's book and watched tons of videos. I am on the cusp of spending the $15k to join Phil's training program. Maybe someone can point me to a post or video or just enlighten me on these questions and save me the money:
1. How are you finding these "distressed" deals? It seems to me that most people are putting out signs such as the "we buy ugly houses", or maybe a craigslist ad.
2. Exactly what type of contract are you using, and what are you saying to a homeowner to "tie up" the house. Why would someone sign a contract with you which prevents them from selling their home, while they wait on you to find an investor buyer? Is there a catch that I'm not aware of? My guess is that if you can't find a buyer, you are on the hook to purchase the home. What if you can't get the capital to do this?
3. Where do I get this contract? I have asked my lawyer and several real estate agents, and they said just download one off the internet. These seem to be geared toward traditional transactions, and I can't see how they apply to the creative transactions.
Other than that, this is how I am thinking the flow of the transaction goes: find the deal -> "tie up" with contract -> find buyer -> sell contract to the buyer for a profit. let the investor close with the homeowner.
Is that correct?
I am very excited, and willing to learn. This is just very new. Thanks for any help!