okay so i have my first property finally under contract.... so now i need to find buyers.
the buyers want to check out the property
but the seller doesnt know that i am wholesaling it
how can i have a bunch of buyers coming on different dates to check out the property?
should i tell the seller that i am a wholesaler?
We have a line in our contract that states that we are purchasing the property "or assigns" & we disclose with the seller that we have the option to assign our contract to another qualified buyer.
We aim for full disclosure, that way there are no surprises for the seller. I wouldn't necessarily walk in & say, "Hey! I'm a wholesaler & I have no intent of purchasing your home myself :)"
Another way to put it is that you are in acquisitions for local investors. You help them find homes & they close them.
One last thing, schedule your showings at the same time. It creates great competition.
1. Take a lot of pictures of the house so you can have less buyers go to the house.
2. Ensure that the prospect buyers show you proof of funds so they are not wasting your time.
3. Read the contract, check this with your state real estate law (or) talk with a Realtor, but to my understanding (base on state of GA) every contract can be assigned to another buyer "unless" it states in the contract that it can not be done.
4. Tell the truth
5. If the seller wants to back out because of this, you will have right to get your earnest money back.
Once you have the house under contract, what you do with it during that time (if allowed in the contract) is your business, as long as you pay and close on the agreed terms.
Just let the one buyer who is going to purchase your contract go see the property. It should only be for him or her to confirm their purchase. The buyer is a financial partner, you can mention casually that sometimes these partners like to buy you out. It's a little less profit for you but also less risk.
Say as much or as little as you are comfortable with. It should be honest without providing them the definitive guide on wholesaling.
The buyer can ask the seller anything he wants, just don't discuss price.
If the buyer backs out because of the condition of the property you will have to make some decisions, renegotiate or find a new buyer or both. Anyways, the house visit should be a formality.
And while you can make more money by pitting buyers against one another, I personally prefer to deal with one at a time unless and until you have to scramble to find a buyer.
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