Do you recommend telling buyers the process of what your final intentions with the property is or tell them that I or a partner will purchase the home.
I have seen people use both approaches and wanted to get feedback.
I view wholesaling and my business as a service that I am providing to both the seller and the buyer
You don't want to say her I am wholesaling your house to someone for tons of money.
What I say is that we purchase homes in the greater ______ area. Some of the homes we turn into rentals, some we rehab and resale, and others we pass along to business partners. I'm sure you don't mind whose name is on the check when it clears right?
The trick with this approach is that I have back up plans in place to close on the home if I am unable to secure a buyer. You don't want to be the guy that ties up a home for 2 months and can't do anything if he doesn't get a buyer. That's what gets wholesalers looked down upon especially on BP.
My contract also contains provisions for marketing, assignment, and access to the property. Normally people will ask about those. My above answer normally clears up any confusion and they know they are getting X for Y in Z number of days.
I am very open with the process to buyers. I tell them my exact intentions with what I want to do with the property. I feel that being honest will people is the easiest way to establish a relationship and create a great reputation for your business. It's the dishonest people looking to make a quick buck with little effort who are hurting wholesalers.
You mean the seller, not the buyer, right?
@Richard C. brings up a point. I do let buyers know that I have it under contract if they ask. If the profit is small enough I will assign (so they'll know then) or larger I double close.
I usually just play it by ear. If they are older and may not understand, I will just double close the property. It costs a little more in closing costs but makes 2 clean transactions.
Some people just need to sell so bad that they don't even notice that a company with a different name is purchasing the property.
Sometimes my partnership will buy, sometimes my company, sometimes my partners families company. The names change all the time so it happens often, and I don't think the seller has ever noticed.
I tell my sellers that my wife and I buy houses for a profit based off of the numbers. If teh numbers do not work for us then we have a team of cash buyers who may be able to close the deal just as quickly, and if that doesn't work, I can refer them to our favorite real estate agent to see if their property may be able to be placed on the MLS, but our main goal is to help them solve their problem, the reason why they called us. Sellers don't care who buy's their house or why, they just want to get out of the situation, whatever it is, and are thankful that someone is solving their problem. By being honest, I don't appear as a sneaky investor trying to take advantage of them, builds trust and rapport, more likely to get a deal.
Thanks for the info guys. I do believe honesty is the best policy and to be as forthcoming as possible will always work in my favor.
I am going to set up some funding so I will have the ability to close on properties if I cannot find a buyer
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