How Do I Build Equity Wholesaling Properties

Question

Hello All!

I just started my real estate investing journey, and I currently own two properties: a Condo in Rio Rancho, NM, and a Single-family house in Jacksonville, NC. The Condo I got a conventional loan with 20% down. For my single-family home, I used my VA loan and am currently house hacking.

I am running into (and I'm sure everyone does) is having capital for a down payment, rehab costs, etc. So I have been researching ways to raise capital, and the one that sounds the best is wholesaling properties that I find. I like this because it gives me all the practice I need to analyze deals, make offers, and talk to sellers. It also provides me the opportunity to build relationships with local investors.

My question to all of you: How do I actually wholesale a property? I need the down and dirty from making the offer on an off-market property. How do I get it under contract? How do I assign the property to another investor? What do I need to do after I assign it? What do I need to do for closing? What paperwork do I need to be able to do this? Legal considerations? I need it ALL!

I know I'm asking for a lot, but any information will be greatly appreciated!

Thank you in advance,

Eric

Patrick Torres · Answer

@Eric Caputo If you dont want to pay any money to learn, YouTube & TikTok are your best friends here.  But I can give you an oversimplified version.  Find an off market property you can buy for under market value.  Fill out a purchase and sales agreement for cash with the seller.  Take that purchase and sales agreement to a wholesale friendly title company.  Post your deal on the FB investor groups advertised at a higher price than what you paid.  When you find an end buyer to assign your contract, fill out an assignment of contract agreement with them, then take that agreement to the title company. On the day of closing the title company will handle all of the paperwork and you will collect a check for the difference in prices between the two contracts.  PM me and I’ll give you a good title company I’m town to use.