Hi everyone ,
I'm trying to find out a little more information on the wholesaling process .My question is,what would be the actual next steps after you find a property for sale?I would really appreciate if someone could help me out a little so that I can have a better understanding .Thank you In advance
Hey Aundra Fields,
I'll be quite honest and upfront with this- I myself am learning wholesaling, well real estate for that matter. The focus in wholesaling should be on run-down houses, especially if they are not listed, as I've learned it.
First, do you have a list of buyers? It's important to first have a list of buyers (investors) who want to do business with you so that when you do have a house with an agreement (contract to purchase the house) with the seller, you can immediately find the buyer (investor) and close a lot more quickly than if you didn't have a list of buyers so that you won't be stuck with the house.
Write an agreement to purchase the house that you made with the seller, then it's just finding the buyer and working it out with them.
I would highly recommend (I am not getting paid to advertise this product) you read Jackie Lange's, "Real Estate Profits on Steroids.” The book is not a lot pages.
She started out as a housewife with no experience in real estate and learned about wholesaling, doing about 40 deals on houses in her first year after studying wholesaling 2 weeks. Since then, it's all history. Check her book out and her website. She has more than 15 years of experience, may even 20 I believe.
Hope this helps (also, BiggerPockets has articles on this).
* with an agreement to purchase the house that you made with the seller (3rd paragraph).
Also, may I add that make sure you understand everything about the contracts before you go find a run-down house. And obviously I have not mentioned everything that needs to be said on wholesaling. That will take reading.
you dont want just any house. it needs to be a house that you can get at a good discount for someone who fixes them and resells them (there are different ways to wholesale but we'll stick to this one).
find a real run down house, or someone who is really motivated to sell their house. you need to get it at a humungo discount which is why real rundown houses are usually good targets.
figure out what the home is going to resell for when it would be all fixed up. agents run comps using mls, or you can use it as a starting point using zillow (DONT USE ZESTIMATE.)
figure out all the costs associated with buying and selling a home. property taxes, insurance, utilities, transfer tax, brokers commission....
make an appointment with the seller to go check out their home. figure out all the repairs that need to be done to the home.
Home resale all fixed up - all the holding and closing costs - repairs - profit = max offer
As a beginner, i would find a guy who fixes homes and resells them so you can learn from him. you'll have to trust him because you are unlikely to get the property under contract, it will probably be more of a trust game with him where he will give you commission as a finders fee.
find some homes, tell your buyer to come check it out with you and then he will tell you where to go from there.
It seems from your post that you are light years away form being an active wholesaler. The best thing you can do to improve your situation is study. Use that search bar at the top right hand corner and search things such as "the 70% rule" "Direct mail" "the 50% rule" "wholesaling" "bandit signs" "creative marketing" and so on.. Read as much as possible until you get your head wrapped around the subject then move on to the next one..
Without a good knowledge base it is impossible to be successful in this business long term.
dont listen to micah you are not lightyears... just work hard at learning the business and it will come to you.
find a partner
Listen to Micah, he's given you good advice.
Listen to some of the podcasts on wholesalers, some golden information there you and I agree with @Micah Copeland studying is absolutely essential, I don't think it will take forever to learn but maybe a few months or so to build a strong foundation. Also try and attend REIA meetings in your area, meet with seasoned investors and figure out what it is they are looking for. The more you learn the more you earn! Good luck!
Hi everyone ,
I received you guys responses along with advice. You guys were a great help to me and I commend you tremendously for that.However,please note that I have and still am studying real estate.Ive been doing so for the last 6 years but now I'm about to take action.Im already aware that there is much much more to be learned ,and I'm eager to learn.Its just that lately I've been trying to get this wholesaling process down pat,and that's why I sought help through you guys.
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