Need help with contracting this potentially GREAT wholesale deal.

[Justin Reyes]

Hello,

I live in Milwaukee WI, and I know someone that wants to sale them home. The property is not on the market yet and He told me that he wants $280k but I’ve done my research and checked Coms in the area and they all are going for $325k average within a 3 block radius. I don’t want to approach him just yet about putting his property under contract only because I DON’T KNOW HOW TO DO IT😫. Is there an official “wholesale” contract available or template or does anyone want to team up with me and take this deal? I will do all the leg work so out of towners are welcome. Anyone with experience, please message me. Thanks!

[Barry Pekin]

@Justin Reyes,

If you're looking to start wholesaling, then the very first step you need to do is to learn.  I found some potential deals a while back before I learned what to do, and I'm so glad I didn't try to wholesale them.  They would have been a disaster.

There are a LOT of resources online for learning how to wholesale.  There's a lot of information here in BP.  You can listen to podcasts (my favorite is Wholesalers Inc).  You can attend webinars.  You can watch YouTube videos.  I paid a reasonably small(ish) price for training from a local guy.  It was worth it's weight in gold!

You need to learn how to value properties (ARV). You need to learn how to estimate repair costs. You need to learn how to negotiate with sellers. You need to learn how to gather a great buyers list. You need to learn how to market. You need to learn about getting homes under contract. Those are the big points, but there's more. Without this knowledge, you may find a deal where a house is available at 50k under retail, maybe even get it under contract, and then find there's nothing you can do with it for any number of reasons. This sucks for you, and even more so for the seller who's counting on you to get their unwanted property off their hands quickly.

Go learn, and good luck!