I'm a beginner wholesaler and I've heard that it costs little to no money to begin. Which I have mostly found out to be somewhat true. I have been looking up properties but what's been holding me back to actually getting them under contract is the fact that I don't have the funds to pay for an attorney to review the contact make sure that it's valid and contains all it clauses. My question is how do I get around this? Is there even a way? I need some help.
You don't need to have an attorney to review the contract. I would recommend getting together with a local investor in your area and see if they will help you and mentor you. You can find YouTube videos to help you with the Florida purchase and sale agreement contract. You don't even have to have money to open escrow if you don't want too. I open escrow with $10 and I use Mead Law Firm in FWB. They are great. I do about 4-5 contracts a month with them. Jay you haven you number I'll help you with filling out a contract.
That is very true I do have the contracts I was just under the impression that an attorney had to review before I will definitely look at the videos to see if my contracts reflect the ones on the video. Thank you for the help I would've reached out to you but I just didn't want to feel like a burden or anything. I have to realize people don't mind helping those who want to learn.
Hey,my name is Cedric how did you start wholesaling?Im very new too,I have a little cash just not much knowledge if the business.
I don't know who has romanticized wholesaling.
"Newbies can do it. No experience, no money. Just make a few calls and get rich."
It is hard work for experienced investors with some money, and a solid track record.
I recommend newbies concentrate on buying their first (small deal) house . Sell it or rent it. Make a profit. Learn from REIA, books, and the experience of buying and owning.
After a solid foundation, give it a try. It is not what you see on TV. It is a business.
@Joseph Ball Can you lay out the process of wholesaling a house step by step just so we can get a better understanding because I do believe what you say but would like to know line for line how it goes from someone experienced.
Tell us some of the things we haven't heard and what your experience has taught you, it would be greatly appreciated!
permission to speak please. I am new to wholesaling as some of you are. but I do feel qualified to address this discussion. Here are a few things you can do on contracts; have a title company review your contracts and answer all of your questions on the paperwork and how it needs to be structured to do what your trying to do, which is wholesale. Just tell them exactly what your doing and they will tell you exactly what they need and how it needs to be filled out. No charge. It's in their best interest to make sure that if business is going to be coming their way (from you) that they get what they need in order to process it. When I first started I simply found an investor that was selling a house, asked him for a contract so I could submit an offer, and voila, a blank contract was in my email. It was pretty straight forward and to me, that what you want, simple, practical and straight forward. When I submit an offer, which honestly isn't as much as I would like, maybe 10 or 15 total (I just started learning about wholesaling in September) I change up minor details if I need to ( closing time, deposit amt, inspection time, etc.) Another method I was told about was to just ask a realtor, in your state of course, for a contract so you can submit an offer, not all of them will send you one, but it was pretty easy for me to find one that would, then you've got a realtors contract (official). Just take out the non applicable clauses. A little bit of you tube and bigger pockets research will tell you what you need to know about clauses, general ones and ones that are specifically geared to protect your interest. then run that by your title company. You could also just get like a prepaid legal service or something. You can wholesale without much money. In 3 months I've gotten three deals under contract without any money via craigslist, driving for dollars, hiring bird dogs and a lot of networking. I know that's not a lot and apparently they weren't deals because they didn't sell but I started with zero experience and zero knowledge in real estate (ive never bought a piece of real estate in my life, investment or personal) and a very limited budget. There's several other low cost ways to market for sellers and buyers of course but that's another discussion. I do what I can with what I have and you should do the same. Wholesaling really is all about marketing though, letting people know you exist, what you do, and what you can do to solve their problem. And in order to do that on a consistent basis, and in a way that it will provide consistent income and results for you, your going to need a marketing budget and creative marketing techniques. Don't take what im saying like I'm giving advice because I'm not qualified to do that yet, I'm just reporting to you what I've learned about the business in 3 months of being in the field.
Troy: I do little deals. Each requires good sourcing. You must understand I made my reputation "Buying Right". What is "Buying Right"? I buy low enough to SELL to my buyer for around 50% of retail. Little deals-under $50,000.
Sometimes I buy for myself, rehab and sell. Sometimes, I buy for others.
Why don't I keep these deals for myself? Sometimes I do-after my buyers have declined. Buyers get first choice. They know it. My reputation is everything. I do this full time.
I never solicit buyers. They come to me-word of mouth.
In a public forum, I would rather not furnish more details. If you have a way to reach me privately, I will send you more details.
I hope this may be helpful.
Wholesaling doesn't require that money because you're not actually purchasing the property - you're just trading off the contract to the property to someone else for a sizable profit. Most of the money spent on wholesaling is on the marketing portion, I believe, if you're a very voracious marketer. I wouldn't know for sure because I know more about flips and rentals than I do wholesaling, but that's what I think. Wholesalers do have to put in massive amounts of work and effort though, to find those deals. If you consider that good deals, such as for flipping, normally already take work to find, wholesalers have to put in even more work to find deals that are even better than those good deals in order to profit, because they're passing off good deals to people who themselves are looking for good deals. It's the trade off for the low amount of starting capital required.
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