Do' s and Dont's

[Eduardo Munoz]

Hey there,

As the title states, what are some do's and dont's of wholesaling? I'm quite interested in wholesaling and have been doing a lot of research on my own, but there are a few things that I feel like are being left out when reading articles, but not really sure what.

I also have some questions of my own:

1. Once I get a house under contract, whats next? Do I talk to a title company? When does the transfer of the title begin? (Besides having a buyer lined up).

2. If I cant find a buyer for the contract, am I the one liable to buy the house? (It seems obvious to me the answer might be yes?)

3. As a wholesaler, will I have to spend money? (From some of the articles I've been reading, some say yes but don't make it clear on what).

If you take the time to read and respond, your comments are much appreciated, and a thousand thanks!

[Vince Coleman]

I am also researching my way into Wholesaling but I believe as long as you have a due diligence period and a clause stating that for whatever reason after the due diligence period is over and you do not want to execute the contract then you do not have to follow through with said contract. I think that is your get out of jail free card in a sense because there is no way everyone is qualified to buy the houses that they get under contract. 

(Please correct me if I am wrong)

[Eliott Elias]

Be ethical in your business, never put a property under contract you or a buyer you have can't close on, be solid with your ARV & rehab.

[David Ramirez]

1. 1) Once you have a property under contract, it's important to get in touch with the title company to open escrow and send your earnest money deposit (EMD) to ensure the agreement is valid.
2. 2)If you've done your due diligence and run your numbers properly, finding buyers should not be a problem. However, if you're unable to find a buyer, you can still back out during the inspection period and get your EMD back. If the inspection period expires, you will lose your EMD. One strategy is to get an EMD from your end buyer that is higher than your original EMD because if they back out, you get their EMD and keep the difference. However, you will need to give the original EMD to the seller in case of fully backing out.
3. 3) Yes, around 35-40% of my revenue is allocated to marketing.

[Chris Seveney]

Quote from @Eduardo Munoz:

Hey there,

As the title states, what are some do's and dont's of wholesaling? I'm quite interested in wholesaling and have been doing a lot of research on my own, but there are a few things that I feel like are being left out when reading articles, but not really sure what.

I also have some questions of my own:

1. Once I get a house under contract, whats next? Do I talk to a title company? When does the transfer of the title begin? (Besides having a buyer lined up).

2. If I cant find a buyer for the contract, am I the one liable to buy the house? (It seems obvious to me the answer might be yes?)

3. As a wholesaler, will I have to spend money? (From some of the articles I've been reading, some say yes but don't make it clear on what).

If you take the time to read and respond, your comments are much appreciated, and a thousand thanks!

Either become an agent or be a wholesaler, but do not be an wholesaler playing an agent. Getting a property under agreement without end buyers and marketing it to the masses is being an unlicensed agent. Do not be "that guy"