How to Properly market my wholesale deals!

Question

Good evening BP fam,

I'm interested in learning the proper (successful) way to market my wholesale deals to other investors without disclosing MY contract price and losing leverage in the deal. I'm talking through emails and phone calls.

Do I email my buyers list with an asking price higher than what I got it under contract for or just request a certain amount for an assignment fee? I need a good system to follow, and repeat.

I'd like to hear from other wholesalers or those familiar with the process.. Do you not disclose even an asking price and just provide your comps, ARV, repairs, location, etc and wait for offers or do you basically put a price tag on your contract and market it by saying something like "5k for assignable contract in Woodforest Oaks, 3/2, contract for 90K for property located at 1211 Oak Ln, 10k in repairs, 155K ARV?"

Let's pretend you go this route -- you advertise your 90K contract for 100K to all of your investors. How do you work in the assigment fee?

Please advise, I'm interested in hearing input about both examples, and how I would structure the assignment fee for the 2nd example without having to do a back-to-back closing!

:mrgreen:

Jimmy C. · Answer

Just advertise for the price you want to sell it for that includes the profit you would like to make. You may want to pad it a little bit to leave room for negotiation.

Once you have screened your buyer and you know they are using cash or hard money, then agree to an acceptable price. Then just tell them that you are wholesaling and you will fax over the original contract and the addendum. If they are new to REI, then explain to them that they just need to sign the addendum and drop it off or fax it in and get their deposit in with the title co/attorney.

The assignment fee will show up on the HUD1 statement that the title company prepares, and they will cut you a check for that amount at closing.

The exception to this method is when you are wholesaling a home that is occupied by the seller. In that case you will have to tell your prospective buyer what is going on. You will be setting appointments to show your buyer that house while the seller still lives there. But any seasoned investor will understand that you are wholesaling, and that you are not doing it for charity. ;-)

Laura Alamery · Answer

It really depends on the spread if I use assignment or flip/resale the deal. If your margin is really low, you might want to assign it and most of the buyers for this scenario would be wholesalers, who know how the business work. You basically should have a buyer's list of wholesalers that you contact when you want to assign the contract.
I usually charge anywhere from $1,000 to $5,000 for an assignment. Again, I use assignments only if there is little spread. I have a contract that i use for Assignments, so it helps to avoid wholesalers going "around your back." Just contact wholesalers that advertise on Craigslist or other media. Go to local real estate investors meetings. Building a ready and able buyers' list is crucial for assignments or flips.
If you have a larger spread, sell the property as you would sell any deal. I would still price it well below market, to get it moving, but you can advertise on Craigslist or your list of investors buyers (who are not wholesalers). You don't have to disclose your purchase price.

How to Properly market my wholesale deals!

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