New Wholesaler, Steps and Can/Cant Do

5 Replies

Im a new wholesaler in the Lee County, AL area. Ive been doing a ton of research and getting as much guidance as I can from youtube and other informative sites. I have 3 motivated sellers, 1 possible investor that my girlfriend knows and one lady inquiring about investing from a craigslist ad i posted. My question is #1, What are some things new wholesalers should know/be mindful of when starting out? I've been doing research but nothing beats practical knowledge and experience. And #2, am I allowed to send pictures and information on homes to potential investors? As long as I clarify I am a wholesaler and not the current owner? And #3, what is the process you guys follow? From the videos it looks like

1. find a property

2. sit down with and question the seller

3. walkthrough and copy down damages/get an estimate on repairs

4. make an offer/sign purchase contract

5. contact buyers

6. make a deal with the buyer/sign assignment contract

7. take both contracts to the title company and get paid

If thats right then great, this is my first venture into entrepreneurialism so I want to make extra sure I got my ducks in a row and a plan. If its not right or somethings missing, could someone help me fix it?   

1. find a property     I would instead send mailings so motivated sellers call me.

2. sit down with and question the seller   I would take all general info over the phone

3. walkthrough and copy down damages/get an estimate on repairs   no visit until we agree close on price over phone

4. make an offer/sign purchase contract  do this before walkthrough if possible

5. contact buyers

6. make a deal with the buyer/sign assignment contract

7. take both contracts to the title company and get paid  steps 5-7 are correct

@Andy Rumple as a newbie I am wondering how agree on a price sight unseen and would you sign a purchase contract without a walk through? I ask because how would you be able to give a solid price without seeing the house? Are you confident based on your contract terms?

I ask the seller questions about how much rents are if occupied and condition of house.
That information along with comps combined with my knowledge of values to buyers(which is something you get with experience and selling deals) gets me a close estimate of what I can pay. I tell the seller that if I get to the house and it is worse than described then to expect a price adjustment and a new contract. This has saved me many hours. If you are far apart with the seller on price no need to go to house.

The second part of your question......yes my contract allows me to object to the condition
of the house all the way to closing date. It allows me an out if I discover the house is not 
worth what I offer. I also am extremely well versed in what pricing I can give and still make a profit.
You want to give the seller as much as you can and still make a good deal for yourself. Everyone
wins in a good deal.

OK i see what you're saying. Thank you, that was Williams question about the property being sight unseen would have been my follow up question. My only thing to tackle now is building up that buyers list as well as getting better at telling someone that their 35k asking price is gonna have to come down to about 6 or 8k to do a deal with me. What have you learned are the negotiation dont's?

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