Flipper · Hamilton, OH · Member since 2013 · 18 posts · 3 votes
Hey all!
I'm a newbie to wholesaling and have just locked in my first deal! I've done all the leg work, found good comps, the whole nine yards and am starting to market the property once equitable rights have been established.
My main question is, how as wholesalers do we define ourselves to the seller? I've negotiated the lowest possible price from the seller who obviously wants the most out of his property, so I can't just tell him I'm marketing his property to other investors to make a profit can I? I'm just confused on how to make this as safe a transaction as possible in the off chance I can't sell this property to an investor.
Any advice would be amazing! I'm just having trouble framing up what exactly I'm doing to the seller to put him at ease, even though I'm not guaranteeing I'm selling his house.
Investor · Richmond, VA · Member since 2013 · 195 posts · 27 votes
12y
There are a number of explanations that I have heard. I believe honesty is the best policy personally. You can still make it sound nice and make them understand it is a win-win situation.
You could say that you work with a partner on all your deals and you work as a team. Typically you find the deals and he funds them. Explain that your partner will still need to come and do a basic inspection and that you might have contractors come in do give estimates or bids for repairs.
Technically you will be partnering with an end buyer on the deal, they are still getting the same cash offer that you gave them, and the contractors that will be coming in will be doing basic evaluations and inspections (even though they are investors who intend to buy the property). So you haven't lied but simplified the process for them. Motivated sellers at times just want the problem resolved as quickly as possible. Don't overcomplicate it for them because you can open a ton of questions that can end up losing you the deal. KISS
Investor · Richmond, VA · Member since 2013 · 195 posts · 27 votes
12y
There are a number of explanations that I have heard. I believe honesty is the best policy personally. You can still make it sound nice and make them understand it is a win-win situation.
You could say that you work with a partner on all your deals and you work as a team. Typically you find the deals and he funds them. Explain that your partner will still need to come and do a basic inspection and that you might have contractors come in do give estimates or bids for repairs.
Technically you will be partnering with an end buyer on the deal, they are still getting the same cash offer that you gave them, and the contractors that will be coming in will be doing basic evaluations and inspections (even though they are investors who intend to buy the property). So you haven't lied but simplified the process for them. Motivated sellers at times just want the problem resolved as quickly as possible. Don't overcomplicate it for them because you can open a ton of questions that can end up losing you the deal. KISS
Investor · Richmond, VA · Member since 2013 · 195 posts · 27 votes
12y
Also when you say you locked up the property, to mean that sounds like you already have the property under contract. You also said you still need to get equitable interest so I'm assuming you don't have it under contract just yet.
Just wanted to point that out incase you have some miscommunication with saying "locked up". Not trying to be picky. When your new, seperating yourself from other new wholesalers by showing knowledge and closing deals will build your reputation faster.
Flipper · Hamilton, OH · Member since 2013 · 18 posts · 3 votes
12y
Thanks for your insights, Alex. (great name btw)
Perhaps I wasn't clear enough in my explanation. Locked up meant we negotiated a price and he has accepted my offer, verbally at least. Now it's just a matter of getting the paperwork signed so I can market it.
I like your point about establishing myself as professional and how that will help me in the future. I think you're totally right in that point. I'm just excited to figure out and master this whole process given this is my first deal. It's definitely harder than how the gurus market it as, but to me it's exciting!
As @Alex Harris said I use the line an associate of mine...
Your buyers should be firmed up in advance. Go to 3 different local REIA clubs meet fellow wholesalers and cash buyers (rehabbers) find out their buying criteria. You should have all the buyers you need.