Just came across my first wholesale deal. Im so excited! I contacted the seller and is about to schedule a meeting? What is my next move, how can I prepare myself, and what should I look for when I meet the owner to view the house? Any advice is greatly appreciated!
I'd recommend asking those questions before marketing for properties. Read the threads on wholesaling here on BP. This biggest tip is that getting a purchase contract with the seller is worthless if it isn't a deal an end buyer would get excited about. It's ok to walk away if the numbers aren't favorable.
You definitely need to have an end buyer in place. The most important thing is to make sure the seller doesn't go around you buy contacting the end buyer. Try to get a non compete non disclosure signed between you and the seller. Contact me if you have any questions. I' done 13 deals this year. Good luck
I do agree with @Adrien S. in that these are questions you probably should have had answers to before you marketed for leads. But...who knows. This may have just dropped in your lap before you started your marketing. It happens. That being said, to answer what you've asked:
To prepare yourself, look up all the information you can on the subject property on the county assessor's/appraiser's website, zillow, trulia, redfin, etc so you have a basic idea of what the area is like, what demand is like and (most importantly) what other houses in the area are selling for. This will give you a basis for your ARV (after-repair-value).
Once you get there, make sure you have a legal pad or something to make notes as to what repairs are needed. Before you make an offer you'll have to have an estimate of what it will cost to make those repairs.
As far as what to look for when you meet the owner, look for signs of distress. Do they seem anxious to get rid of the property? Why? Build rapport with them. Show them you're someone they can trust. Let them know you're not there to rip them off...and mean it.
Check out Brandon's "Ultimate Beginner's Guide to Wholesaling" here: http://www.biggerpockets.com/renewsblog/2015/01/31...
There's a section addressing exactly what you're asking about as well as all the preliminaries and basics on wholesaling in general.
Thank you guys for the advice. I finally met with the seller and she is VERY eager to sell. I already have my buyers list. I pulled the property card on this house already, I have estimated the repairs and I believe I have pulled some reasonable comps all under 3 miles of the property because there were no homes in that neighborhood. What is my next step? Would I contact my buyers before getting her under contract and once I do get her under contract do I need to contact a title company to do a title search or would my buyer do that? I'm thinking I would but Im not real sure on how this process works. Please help!
@Genita Dejean ....do you have a mentor or are you looking for someone to help you out? What part of town are you in?
That would be nice. I would greatly appreciate it. I didn't want to come out and ask because I didn't know how people would respond. I am in Richmond.
@Genita Dejean Genita - what ever happened with this potential deal?
Join the Largest Real Estate Investing Community
Basic membership is free, forever.