Hello all! I am just starting to get into researching Real Estate Investing. I am quite curious about what exactly 'Wholesaling' is. I think I grasp the concept, but I have so many questions!
1.) Is it illegal?
2.) Who draws up the contract? Do you use the same standard contract for each house?
3.) How exactly do you "sell" the contract?
4.) Couldn't an investor screw you over by reviewing the contract for the property, and then going behind your back and purchasing the property without going through you?
5.) Where do you obtain a buyers list?
(1) Yes, but some people including realtors will say that it's not. Check with the wholesalers at your local REIA
(2) You should be able to get a contract(s) from the wholesalers at your local REIA. Sounds like a broken record, huh!
(3) You market the contract to sell it. Craigslist, and here we go again.........your local REIA investors
(4) Yes, there are some that will try and some that might succeed in ripping you off. You'll learn who they are and avoid them. From my experience it doesn't happen very often.
(5) I almost hate to say it...................you can get tons of buyers at..........I'm sure by now you know the answer to this one...........
Your local REIA!
2)You can get contracts online that are relevant and updated.
3)online and through your network
4)You can MOA so that If they were to purchase the last person that It would show that has interest in the property is you and they would have to contact you in order to do anything with that property.
5)post online, county records
There is a Facebook group called Wholesaling Houses Mastermind Group. They run a 30 Day boot camp. I will be joining this boot camp on the next session.
If you are interested in joining this boot camp please let me know. I have access to a discounted price.
I don’t work for them just been researching like crazy and thought I’d share this with you.
What’s their price?
I would say just join a local real estate investors meeting in your area, they can answer most of these for you with regard to the laws in your area. As for ...
2) At investor meetings, become a familiar face, learn who the cash buyers are and ask about their criteria if any, discover what way you can bring them value. People at these meetings likely can help you with contracts and documents they use regularly for deals
3) This involves another contract, you basically sell your equitable interest in the property you have under contract. This is the assignment component.
4) Yes a buyer could attempt to deal directly with the seller but be firm with the buyer and tell them if they do attempt to do that then you can't be doing business with them.
5) Investor meetings primarily, calling people on craigslist who are renting properties and ask them if they are looking to buy more, can do the same with "for rent" signs you see in a neighborhood.
Learn your numbers... you're basically providing a service to cash buyers to save them time so bring them value.
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This is part of a video series https://www.facebook.com/Cody.B.Sperber/videos/120...