Is it okay to advertise/market a wholesale deal to buyers before you actually get it under contract ? I see a lot of posts where people get it under contract and then look for buyers is there anything wrong with doing it the other way around ?
I wouldn't recommend going that route. Always have the property under contract because that will give you the actual right to assign the contract to your end buyer. You can run into many issues if you're doing it the other way around. Hope this helps.
I believe a lot of wholesalers marketing by saying they have a property for sale to try to find buyers. This is all speculation, but there are many times I will see a new ads on craigslist or a new bandit sign, I call the number but each time I "just missed out" on the deal but somehow I always find myself giving out my information for future deals that never appear. My opinion when it comes to wholesaling is if the numbers work you will find a buyer, no need to play games to build a buyers list.
Thanks so much !
As a buyer if you tell me you have a property and I want buy it I am expecting to be able to buy it. If you fall through and don't actually have the property I will not use you again in the future and tell other investors the same. If your seller catches you marketing a property that they haven't agreed to sell I can imagine you could get into hot water....
Thanks for the insight. I'm getting a bunch of different answers off the forum in my inbox and everyone's reasoning makes sense. Do you wholesale at all ?
I have personally wholesaled one property. I have a friend who has done dozens. The problem with advertising before it's "yours" is the home owner thinks well I could have done that! If you truly get an awesome deal under contract you will have no problem moving it.
Mine had an ARV of 118k. It needed about 50k worth of work. I offered 18k and sold it for 30k. My business partner and I had a time of less than 3 weeks from initial contract to when the person got paid and closing took 10 days to set up.
We developed most of our buyer's list from people that came to see the property and folks on here that we have met.
that was going to be my next question how do you determine how far to push out closing and things before you find the buyer ? I'm sure most wholesalers already have a buyer in mind when putting under contract but for someone who doesn't what rule of thumb would you use ? Or do most people offer a 30 day close and just speed things up after they find the buyer ?
Don't waste your time or that of others and do not leave a seller hanging, line up buyers, know what they want, then find what your buyers are looking for, life is easier.
Also, you can get nailed for advertising properties you don't own, or acting like an agent, you are selling a contract to buy, you're not selling the dirt, advertise the opportunity to buy rather than the dirt.
"Here is your opportunity to buy this lovely 3/2/2 in a highly desirable area, the lot is 1/3 of an acre m/l with mature landscaping and it comes with that "million dollar" view, all for an asking price of $229,900! Blah, blah ...........call now, this great opportunity may not last!" :)
@Bill G. thanks for the insight it's much appreciated !
Your welcome Cierra, and if you're an agent trying to wholesale a deal, make sure you have a clear understanding of "Net Listing" issues, even if you aren't the listing agent. Might get with you broker before you do a deal. Good luck :)
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