I've been cramming and learning and studying and confirming the entire wholesaling process. I just want to make sure I am taking the right steps in the process to be as productive and valuable as possible. Please let me know if I am missing anything.
1. Locate Leads; county assessor, list source, court house, etc.
2. Mail, email, call motivated sellers.
3. Find a motivated seller.
4. Check numbers on property; ARV, location, etc
5. Make contract to assign to buyer.
6. Find title agent.
7. Find a buyer.
8. Sell property and take contract to title agent.
9. Get cash.
I know these steps are simplified, however, if you guys could elaborate if I'm leaving anything out or if I'm headed in the wrong direction.
there ya go. But when you get your contract between you and seller submit that to your title co so they can start the title search.
Gain much experience first. This is not a NEWBIE deal, despite what GURU's say. A NEWBIE deal that I recommend is
1. Find a good quality 3/2 that you can buy reasonably from a motivated seller. Do your numbers carefully, to ensure you can positive cash flow.
2. Buy it, with your money, borrowed money, seller financing, chain letters LOL. Whatever it takes.
3. Rent it. Learn the business. Repairs, rehab, management, valuation. Talking with people.
4. Sell it. Do this a few times, and you are ready to move up to more sophisticated things, like wholesaling.
5. I always recommend little deals. In my area, that is generally under $50,000. You can't lose much, if you miscalculate.
Join local REIA, read books, drink a lot of coffee with like-minded people. You will make a lot of money overnight, (after a year or two).
JPaul Mills thank you for that tidbit.
Joseph Ball thank you as well. And just to confirm, are you suggesting this method because Newbies have a hard time estimating rehab costs and ARV? If so, is there a method of finding qualified individuals to assist with this part of the process?
I guess what I am asking is, is it unlikely to make quality deals, find good sells and interested buyers when your list starts from zero?
@Edward Mitchell that is basically it. You can kind of skip 1 &2 as they are redundant with #3. How you find that motivated seller is not important but finding them is the key.
Between 4 & 5 you might add Negotiate the deal. With a truly motivated seller it may not take much negotiating but the ability to negotiate well will be one key to success.
The concept of wholesaling is relatively simple. Dong it is hard work. Finding great deals is a lot harder than those pushing wholesaling would imply.
It is much more than estimating rehab and ARV. You need experience. Experience to impress a buyer. Experience to evaluate a deal quickly. Experience to tell an "elevator story." Experience to say, "You can trust me. I have done this many times."
My elevator story today. "I am buying a nice house in Palm Coast, Florida this weekend for about 40% of retail. Must close quickly."
This is not any kind of solicitation to BP. I have done this many times-4 last month. I already have three investors ready. I am just citing this as an example. They are ready because I have experience, and a solid track record.
@Ned Carey and @Joseph Ball this is tremendous help. Thank you so much.
I am with an investor friendly title company and most of my clients will wholesale properties by assignment of contracts or double close for a quick return to build capital. Then they will work on buy and holds and other transactions that may need cash up front. Most wholesale properties you can use your end buyers funds to fund the A-B as long as your end buyer is using cash or hard money.
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