Real Estate Professional · Phoenix, AZ · Member since 2015 · 27 posts · 3 votes
Hello, im trying to get this wholesale thing going and im here in phoenix were I've heard it is a great market for wholesaling. With all the expansions happening all over the valley I can make money very easy is what im told by a few local investors. I have little to no money but am hungry to get my first wholesale deal. I have used several different educational sources to gain my knowledge and have come to realize that I wont know what its all about until I actually do it. I have researched and found properties im going to check out this weekend and want to try an have a deal done by mid January. I will be using hard money to get my first wholesale with hopes of selling with in the same day or the same week. Can this be done with no money of my own ? and what does the lender do in this case i would need 100% financing ??? Please help !!!!!
@Anita Walter, I agree with Casey. Here is a typical wholesale deal breakdown.
1. You find a motivated seller. And I do mean motivated. If they're not motivated, then move on and find someone that is motivated.
2. You do your research and numbers and figure out your MPP(Maximum Purchase Price)
3. You send the seller a purchase agreement or call them with your offer.
4. If they agree to your offer, they sign it and send it back to you.
5. You now have 30 days(hopefully much sooner) to find a cash buyer to assign your contract with the seller to for more than you agreed to pay the seller. If you put a property under contract for $50,000, then you might assign it to a cash buyer for $55,000 or $60,000 making you $5,000-$10,000 for being a wholesaler/middleman.
6. The cash buyer agrees to your asking price, you collect a non-refundable deposit from them of at least $2,000 in case they back out and can't close.
7. The cash buyer signs the assignment and gives you your check of $2,000, and once it closes, you get the remainder of your assignment fee.
Typically you don't need any money unless you need to give the seller earnest money, which can be as little as $20-$1,000 depending on what you guys agree on. Hard money is typically used for rehabbing a property, not wholesaling. It's short term funding while you rehab a house.
Hi Anita. In a perfectly executed wholesale deal you, as the wholesaler, wouldn't need any $. Sometimes the seller may want an ernest deposit. In that case you'll probably spend $500 which you'll get back when you close. Financing of any kind is typically an exit strategy, not an actual wholesale technique. If the deal is good HM lenders will typically lend 75% of ARV.
@Anita Walter, I agree with Casey. Here is a typical wholesale deal breakdown.
1. You find a motivated seller. And I do mean motivated. If they're not motivated, then move on and find someone that is motivated.
2. You do your research and numbers and figure out your MPP(Maximum Purchase Price)
3. You send the seller a purchase agreement or call them with your offer.
4. If they agree to your offer, they sign it and send it back to you.
5. You now have 30 days(hopefully much sooner) to find a cash buyer to assign your contract with the seller to for more than you agreed to pay the seller. If you put a property under contract for $50,000, then you might assign it to a cash buyer for $55,000 or $60,000 making you $5,000-$10,000 for being a wholesaler/middleman.
6. The cash buyer agrees to your asking price, you collect a non-refundable deposit from them of at least $2,000 in case they back out and can't close.
7. The cash buyer signs the assignment and gives you your check of $2,000, and once it closes, you get the remainder of your assignment fee.
Typically you don't need any money unless you need to give the seller earnest money, which can be as little as $20-$1,000 depending on what you guys agree on. Hard money is typically used for rehabbing a property, not wholesaling. It's short term funding while you rehab a house.
OMG is this site real ??? I have been searching for this exact answer forever you just made my life so much clearer!!!!! Thanks you @Chris Piper ok so how do I collect my final fee who do I put this information with?
You're welcome @Anita Walter. Once you assign your contract to a cash buyer and collect a non-refundable deposit from them, you will get the remainder of your fee when the deal closes at the title company. They will give you a check at closing or deposit it into your account depending on however they do it.