Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes
I have searched high and low for the perfect deals to wholesale. I've found about 15, Five of which I know for sure I am going to make an offer on. They are through realtors, how do I submit and offer? Do I submit my own offer sheet or does the realtor handle it all?
Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
17y
The primary thing you need to show is that it is a good deal. Why should a buyer take your deal as opposed to something else? You should have ARV, ballpark estimate of repairs and price. There has to be a basic description. Your goal is to spark interest, once you do that an investor will dig deeper into the merits of the deal.
One concern that you will have in working woith realtors is that they want to know that you can close the deal and will usually want a preapproval and proof of funds. Most of them will not be interested in working with someone who is looking to assign a contract.
Real Estate Investor · Portland, OR · Member since 2009 · 660 posts · 244 votes
17y
Richard makes an excellent point regarding Realtors not wanting to work with someone who is looking to assign a contract .... listing Agents get VERY nervous when an offer comes in from someone looking to assign a contract as they don't want to tie up the property for a deal that may not close. Who knows though - with current market conditions (less buyers/more inventory) they might be more flexible and happy just to have an offer come in!
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
17y
Do your own marketing. Bandit signs, direct mail, door knocking, whatever. Everything on the MLS is already visible to anyone who wants to buy. If you're going to wholesale off the MLS, find an agent who will work with you and submit tons of lowball offers.
Real Estate Agent · Tampa, FL · Member since 2009 · 456 posts · 123 votes
17y
there's a big debate about that. half the people here tell you to discretely lie about it until you are ready to go for the kill strike, others say to be totally up front.
i have no experience but i seriously doubt most agents will want anything to do with you if you are totally up front about this and especially when they ask you how many transactions you have closed previously and you say zero, don't be surprised if you suddenly hear a dialtone.
they say it's easier to ask forgiveness than permission; if you play it right and close the deal, you might be able to come across as never having intended to deceive the agent about your intentions and get them to work with you again (the bottom line is you closed and got them money)
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
17y
Its simply two separate transactions that use the same money.
Wholesaler B makes a contract to purchase the property from seller A. B then makes a contract with end buyer C to sell the property. Take both contracts to a friendly title company. End buyer C wires in their money. The title company uses that money to fund both the B to C sale and the A to B sale. They do two set of paper work, including two deeds. They record the A to B deed first and the B to C deed second.
Now, there are numerous things that can go wrong. The end buyer C needs cash, hard money or a lender who's understanding about the transaction. If they are using a conventional lender, that lender will look at the title before they find the transaction, and may will refuse to fund it when they see the seller doesn't own it.
Some lenders want seasoning on the ownership. Because B owns it for a matter of minutes, the won't fund C's purchase. FHA, in particular, requires 90 days ownership by the seller.
Some title companies won't do this sort of transaction.
One way to make it work in more case is "flash cash". B borrows the money to make the purchase from A for a very short time. So, one batch of money comes from C or C's lender and a second batch of money comes from the flash cash funder. The flash cash is used by B to buy the property from A. C's money is used to buy the property from B. B then repays the flash cash loan with the money from the second transaction.
Real Estate Investor · Northern Territory · Member since 2009 · 136 posts · 10 votes
17y
Yes. Some title companies here won't do it so its better to find one locally to you and just ask them if they do a simotanious close or double close. Get someone on your team and start doing the deals
Real Estate Investor · CT · Member since 2008 · 119 posts · 6 votes
17y
A professional wholesaler knows his buyers list well, and has a buyer before he finds the deals. If you have a handful of qualified cash buyers, send them an emal blast with the ..
- Address
- 3 Sold comps
- ARV
- Repairs list and/or cost
- Wholesale price
- Your contact info