Questions from a new guy
I have been poking around the wholesaling industry for a few months. Everyone I meet seems like they are either too busy to guide me through this or they don't really know what they are talking about. I have a few questions that remain unanswered. I know there is no one "right" answer to any of these questions but I would love everyone's opinions.
1. Should you tell the home owner you are a wholesaler? Why or why not?
2. How can you find out if the person who says they are a cash buyer actually has cash or if they are another wholesaler? This one is important in the rapidly growing Philadelphia wholesaling industry. Everyone says they are a cash buyer.
3. How can you protect yourself from home owners changing their minds and going with different buyers who pop out of the woodwork with higher prices when you begin to market the property?
4. How do you gain access to a home before closing in order to show potential buyers? How do you do this if you are trying to keep secret that you are a wholesaler?
5. I have been told by my mentor to use a standard PA Agreement of Sale with a few modifications as a contract. This is not binding for the person I assign the contract to. I was told I have to trust my buyer and if I don't I shouldn't be working with them. What are everyone's thoughts on that? Are there other contracts you would recommend that could make a more legally binding situation for my cash buyer?
6. What are your favorite market segments to target when finding motivated sellers? What are your favorite marketing channels to use? Letters are getting very overdone in my market.
7. After you get the property under contract, do you list it on the MLS? What are your thoughts and experiences with that?