Just want to make sure I have the Wholesaling process down.

Wholesaling
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Just want to make sure I have the Wholesaling process down.

Lee Section
Wholesaler · Biloxi, MS · Member since 2011 · 4 posts · 4 votes

So let me place this process out step by step just in case i have missed something.

1) Build a team. CPA, Investor friendly Closing Company, Investor Friendly Real Estate Agent, Real Estate Lawyer (which is optional)

2) Form a LLC for my wholesale company.

3) Build a Motivated Buyers list (through various marketing strategies. Which my Closing company and Real Estate Agent can help with)

4)Market for Motivated Seller (Preferably looking for Buyer specific leads but willing to take any good deals)

5) (now this is when i get a little confused) Once I find seller go over the numbers to see if it works out to be a good deal. (
Now as a Wholesaler do i also do title research? Look for liens on the property? And do get a property inspection?

6)If it turns out to be a good deal go through a Agreement For Purchase & Sale Of Real Estate Contract with a earnest money deposit $10-$50 with the seller?

7) Show the property and go over the number with my Motivated Buyer. If everything goes well we feel out another separate Agreement For Purchase & Sale of Real Estate , and the buyer leaves a non-refundable earnest deposit.

8)I give both contracts to the closing company and they set a closing date.

9)The closing company prepares a HUD-1 and a assignment contract between me and my rehabber/investor.

10) Sign all paper work and get paid

Is this right? One quick question why do I need a assignment of contract and a purchase agreement between myself and the rehabber/investor? Its the process of things I am alittle confused on. Can anyone clarify maybe I'm missing something.

Thank you in advance

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  • Lisa Monroe
    Real Estate Investor · Washington D.C. · Member since 2010 · 74 posts · 17 votes
    15y

    To much unneccessary work if you ask me. In my opinion, you dont need an LLC just to wholesale but everyone is different.

    some build their buyers list first. You dont have too. If its a good enough deal, advertise and buyers will come.

    CPAs, attorneys etc are unneccessary in my opinion unless you are taking down the property yourself. U may want some consulting.

    If the deal is on mls you need earnest money before you can put anything under contract. if its a REO usually the bank will have its own title agency.

    Find the deal, get under contract, find your buyer, sign assignment papers, new state approved purchase agreement, give both to title agent, close and wait for them to wire or mail you a check.

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  • Rob Gillespie
    Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    15y

    Lotta stuff goin on there Lee! LOL!
    1. Know your market
    2. lock a house in contract.
    3. Run a craigslist ad and collect the names.
    4. Assign it to the most qualified buyer.

    I know it is dumbed down, but it really is not much more than that. The big key you need is a good closing attorney. The rest is just fluff, you can do it without all of the extras. Get your first deal goin and locked down in contract with an exit clause first.

    Next bring it to BP and ask for advice. You will get tons of great insight, I can even direct you to my attorney that is on here to facilitate the closing. He has connections all over the country.

    Just get some contracts and run your deal on here, you will be amazed how easy it can be to get it done!

    Good luck!!!
    :mrgreen:

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  • Clifford Watson
    Wholesaler · Houston, TX · Member since 2011 · 9 posts · 1 vote
    15y

    First find your motivate seller by bandit sign, craiglist, or driving for dollars.When you get the property under contract. You will find a buyer! No question about that. Any bandit sign you see gave them a call they maybe investor or buyer.

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