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Author Topic: Newbie needs detailed help on Wholesale/Flip  (Read 5320 times)

Offline travelhuni

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Newbie needs detailed help on Wholesale/Flip
« on: December 11, 2003, 09:51:18 am »
Hello all, Hope these aren't dumb questions.  :oops:    I've got a couple "courses" on order but they haven't come in yet.

1. Is wholesaling and flipping the same thing?  How is an assignment handled differently versus wholesaling? (i understand no double close right?)  I'd like to make $3-5K per deal.

2. Does everyone use TREC forms or make up your own, or use LeGrand or some other guru's 'canned' forms?

3. I would like to keep some of my newbie-ness hidden from potential clients when wholesaling.  What things would give me away?  

4.Is it really customary/necessary to ask for proof of funds from prospective buyers?  

5. What kind of earnest money/deposit is customary on a wholesale deal? (from me to seller, and from buyer to me)

6.  If i want to do an assignment, what contract would i use? anyone have a copy?

7. Anyone know of a title co. in N.Texas (DFW) area that has some educational seminars about the closing process?

8. If assigning a contract do i attend the closing?  Isn't that where i get my check?  Or do i just get it from my buyer and give him the contract right up front?

sorry so many questions.  I've found some great empty houses in a blue collar area and i want to get something sold and make $ within the next 30 days.  

Thanks.  Beware if you answer my post i might ask you more questions!!!!

Offline tedjr

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Some help for newbie
« Reply #1 on: December 11, 2003, 01:03:28 pm »
I just helped another investor with what I believe the difference is between wholesale and birddog and flipper. All are pretty much the same in that they are making money finding deals and resale to others. I believe a flipper is kind of in the middle of the other two and will sell anything to anyone and not just rehab deals. I remember the word flipper from way back with large apt deals in Houston. He would get the property under contract with little EM and try to sell to his buddies from California for a huge profit and would even try to cut the local broker out of the deal . All kind of terms for him at the time too.

Read what else I tried to help with at : http://www.texasrealestateclub.com/forums/phpBB2/viewtopic.php?t=1117

To help answer some more of your questions I usually charge $25 per hour for mentoring and consulation but here goes.
1. Assignment fee if $3 to $5 grand could be handled by assigning the contract to the buyer. You can get paid when you assign the contract if title work is done and the buyer has inspected the property and is ready to close. You do not really need a double closing as long as the fee is reasonable for the deal.
2. I would use the standard form. All buyers and sellers, attorneys, closing agents know the forms. Make it simple. If some clause you do not like just strike it out and add to special provisions something extra.
3. Your age may give that away all by it self. A seasoned pro will me at least 30 or so. Try not to quote to many books and gurus, dead give away that you are fresh off the press. If it is a good deal it does not matter if you are 18 and only had one course. Find good deals and you will be a pro fast.
4. Some banks and sellers want preapproved buyers only. I would certainly discuss where the funds are coming from.  Proof may be good to show your seller when you are telling them that you are assigning your contract.
5. Try $100 when you buy and get your fee when you assign. That would be best but there are of course other scenarios.
6. You can simply assign on the back of the contract or in any blank place or there is a form I saw that you can change if you need. Here is that link: http://www.thecreativeinvestor.com/modules.php?name=Downloads&d_op=viewdownload&cid=2
7. Never heard of title company doing seminar. Just become friendly with a good title agent and gleam all the info you can.
8. I would go to the closing just to maybe help smooth out any problems and get the check if you have not already. Not all closings fund that day. Some loan companies and sellers want to review docs before funding. The more desperate you are for the money the longer the deal takes to close.
9.  There was no # nine. Hope this helps some. There are no black and white rules to really follow. If you find good deals and let rehabbers know you are out there they will come. I saw you other post here too Great job. You may want to join clubs in your area too. You can get links here at this site to help locate a club in your area.

Happy Holidays and Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile
Ted P. Stokely Jr

San Antonio, Texas

 




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