What is the next step in wholesaling

Question

Roland Paicely · Answer

Contact the owner.  If possible talk to him and find out if he's interested in selling the property.  Also, get more info regarding the property.  After that, make an offer.  Then find an investor/buyer.  Assign your interest........close..........collect money.........wash, rinse and repeat.

Dee Bullock · Answer

@Nick Basye thank you. good info i will be sure to use this

Nick Basye · Answer

@Dee Bullock Definitely, networking is key in this business, be willing to help without expectation. Build reputation. Agents may be able to help you get on some systems from which you can gather comps yourself, ask them about things like listingbook.com

Dee Bullock · Answer

@Nick Basye thank you. So in other words i need to start networking with some investor friendly agents, to pull comps, and to let me know what the ARV is.  Question is there a way i can pull my own comps?

Nick Basye · Answer

@Dee Bullock

In a wholesale deal with the cash buyer intending on flipping it, your numbers would be the ARV, After Repair Value, which is determined by similar properties within a certain radius, 'comps'/comparable homes. Make friends with some real estate agents, agents that are familiar with the investing side and they hopefully will be glad to help you on comps. Everything is based off the ARV so start with that. Other numbers include holding costs. When your cash buyer is rehabbing a house it can last 3 to 6 months, there are costs to consider for the duration of the rehab, things like property taxes, utilities, insurance. There are also closing costs to take into account. These are your fixed costs. Your variable costs are associated with the repairs and that depends on the project. Avoid deals where it requires a new roof or foundation, they are most costly. Something ideal for your buyer would be cosmetic, so floors, walls, paint basic items. You sort out the math on all of that, take your cut(don't be greedy) and if it is attractive enough, you will have saved your cash buyer time and that is the value they expect from you.

Dee Bullock · Answer

@Nick Basye thank you for the advice.  Question for you how do i determine what are the numbers?  What are the numbers, where do I get them from?

Dee Bullock · Answer

@Roland Paicely Thank you

Nick Basye · Answer

Emphasis on knowing your numbers.. a cash buyer(the one you assign the contract to and is actually going to buy it) will expect you to have run the numbers and save the cash buyer the time, that is the value you bring to them as a wholesaler. Already knowing some cash buyers and their criteria is helpful, that way you're not so aimless.

Roland Paicely · Answer

To get it under contract ask the seller how much he needs to sell it for.  Negotiate and hopefully you'll have a good deal.  Once that happens, use an assignment contract to assign to and investor/buyer.  These are usually fairly easy to obtain.  Try your local REI or ask a wholesaler for it.

Dee Bullock · Answer

@Roland Paicely thank you for the advice. I have more info on the property the owner is willing to sale. My next question is how do i get it under contract, and how to I assign that contract to an investor/buyer

What is the next step in wholesaling

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