So is wholesaling a hard process to get into or am I just making it way more complicated thinking about it in my head ?
It is not complicated but you need to know what the right steps are and how to accomplish them.
@Mariana Lazo what are the right and legal steps ?
Hello @Erica Morrow ,
The first step for you to take would be finding a motivated seller, whether that be because of financial issues, divorces, or someone just really needs to get out of town.
Next, go to a title company and put the property under contract with the seller. This contract will have contingencies that will allow you to back out if you cannot find a buyer for your property within the 30 day time period.
Then, go to an investor and make a contract with the buyer and you as the seller. You can include stipulations in the contract where the seller cannot back out if you would like.
Then go to the title company, they will know what they are doing because they have been doing it for years. The price that you bought the property for should be less than the price that you are selling the property for. The title company will give you the difference.
P.S. Remember that investors/flippers want to buy the property for max 70% of the ARP. Meaning you have to know how much the ARP value of the house is worth.
I would recommend that you stick to no more than 2 niches, for your leads. There are a lot of scenarios that define a "distressed seller", but getting involved with all of them without systems established, will stress you out.
If I were starting over again, I would stick to delinquent taxes and vacant/abandoned properties.
Once you identify these owners, decided on which approach you will use to contact them, phone or direct mail. Be very consistent with your marketing, you can't just call or mail once and then give up because of no response.
You will see that as you develop a routine, it will get a bit easier with time. This business is nothing more than hard work, consistency and education.
As far as legal advice, it's best you consult with an attorney that is local and knowledgable on RE Law and contracts.
There are several steps that must be happening almost in parallel. You need to have a buyers list and at the same time knowing what tools to use in order to find the right properties and produce comps.
Also begin the process of creating a team of investor friendly realtors that would like to work with you.
@Nathan Witte so how much do you usually pay for the property that you are trying to wholesale ? I think I am just getting confused on how to go about the contract and knowing the value of the house , etc.
@Erica Morrow well that is not such an easy answer. First and foremost, start looking at properties around your area but looking at deals daily. Learn the market and see what an average 2bed 2bath, 3bed 2bath, etc... listing is and once you start getting an understanding for your market, you will start to know when you come across a deal. The cost of contracts and such things are dependent on the title company that you go to, so you would need to talk to them.
Hope this helped,
@Nathan Witte great , thank you so much for your help !