Help with Wholesaling Questions to get First Deal
Hey fellow BP Members,
I have a long-term goal of investing in rental properties, however in the short-term to build cash quicker I want to dive into wholesaling. I've been reading and listening to Wholesaling Inc., other wholesalers, and I believe in myself to pull it off. I have joined the Houston REIA and the recently formed BP Houston Group - H.I.T (thanks to @Matthew Gullo) where I already met many great people that are like-minded, and willing to work with one another to see each other grow in their investing journey. With all that being said, there are still questions I have regarding wholesaling that I can't seem to get answered. I always hear to just go for it, but I also want to make sure I am not getting myself into trouble. So here are the questions I still have unanswered that I need help with:
1. How do you get a Repairs estimate if you have no idea how to calculate? I want to be fair and forthcoming with the numbers with all parties involved and not give wholesaling a bad rep.
2. How can you have a "sell price" for the seller when they first call you without knowing the specifics? I hear and read how people just give them a number on their first conversation with the seller and am confused on how that happens without "knowing your numbers"?
3. What type of purchase and sell agreement should I use? I hear TREC forms are the best to use, but am not sure which one to use, and don't want to use if I don't understand the language.
4. If I tell a seller I will get the deal done in 30 days, but then end up for whatever reason going over that period, what happens then? Am I binded by the contract to buy the house myself?
5. I read that the law changed recently in Texas to where you must disclose that you are wholesaling and will make a profit off the deal. How can you go about disclosing this with a seller? Just be completely honest with them upfront?
Example: "Hey Mr. Seller, I want to make this an easy and quick transition for you and since I am legally obligated to tell you, it's likely for this transaction I will not be "purchasing" the house myself, but will be assigning the contract to a buyer for a fee by using the clause "And/Or" in the purchase agreement. In the end, I will get this house off your hands and everyone wins. How do you feel about this Mr. Seller?"
6. Does the seller end up meeting the actual end buyer at closing since they have to receive there check from the end buyer? I don't know how this doesn't seem awkward without disclosing the above beforehand.
@Charisma Dixon - wanted to add you on this as well to learn along!