How to make an offer to a wholesaler?

Question

I’m looking to make an offer on a run down former church and it’s being being offered by a wholesaler. This is my first time to make an offer that’s not on the MLS so I would like to forgo the realtor. I’m in Texas. What should I do? Get a lawyer to draft up an official offer? Phone call?? Thanks!!

-Newbie Chris

Wayne Brooks · Answer

Start with a call, have an attorney review the contracts the wholesaler is going to send you and maybe do a preliminary title search.

Yoann Dorat · Answer

@Chris Sabanos how are you planning to fund the deal if your offer is accepted? Wholesalers will only work with cash buyers or someone with PML / HML lined up. The first step would be to call and schedule a walkthrough (do not buy based on pictures), then if you like what you see, present an offer.

Second step, if your offer is approved the Wholesaler is going to draft and send over an Assignment of purchase agreement, ask for a copy of the original PA (mandatory) and send both documents to your attorney to review it. If it's a deal make sure the Atty doesn't take too long to give you his feedback, the wholesaler is constrained by time and will move on to the next buyer in line if you don't make a decision fast enough.

Third step If you agree with the terms and sign the Assignment, you will typically have 12 to 24h to wire an EMD to the title company/closing attorney, and you will be required to close on escrow within 10 to 15 days.

Read the terms of your assignment as they may vary from a wholesaler to one another, but this is the basic blueprint most of them are following.

Chris Sabanos · Answer

Thanks @Yoann Dorat

I’m talking with a friend about partnering with me on it and have been looking at options for hard money. He is a contractor and has much more experience than I in a flip this large. Unfortunately, my potential partner is out of town until Monday and like you said, I’m worried it may be too long for the wholesaler to wait. 🤞

Chris Sabanos · Answer

Thanks @Wayne Brooks!