Hello guys. I am new to this idea of wholesaling and trying to understand it. I am confused about the initial sales pitch to a seller.
1) Are you approaching the seller as an investor letting them know that you will market the property to someone else?
2) Don't you need to put down escrow money to show the seller you are serous?
3) Why doesn't the buyer just look up the property address on the contract, then contact the seller directly cutting you out and saving himself some money?
Honesty is the best policy. Let the seller know what your intentions are.
But that is just my opinion.
Here is the EASY way to work a deal. Close on the property and then market it. Sellers want a sale. Lots of these unlicensed brokers use trickery and deception as their usual strategy with BS clauses such as "subject to partners approval", etc. IF you can walk into a property, tell the seller you don't want to buy it but want to put it under contract and then sell the contract and then they agree, you get an AAA+ rating for marketing. That is not how most unlicensed brokers work. It all boils down to integrity. There are many BP posters that play these games and promote them. If you can buy it cheap enough to flip, you may also want to consider holding the property. Got funding? If not, find funding first OR ask the seller to carry it.
I really suggest you find an on-site mentor to work with you if you are serious about this business based on your questions.
So, I come visit the home, and let the seller know that I am an investor that wants to put the house under contract for say $80,000 with the intention of selling that contract to a buyer for a higher price.
Why doent the seller go list the house in the MLS or for sale by owner for $80,000?
If the seller does this, it could cause an issue with the buyer who I am trying to sell the contract to for say $85,000 - Right?
I don't get how this part works?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.