Ok, so I am interested to get into wholesaling. I am a 22 year old male out of PHX, AZ btw.
I have searched top to bottom this site for info on it ( there is good info) but I need more in depth detail of the paperwork stages so to speak. Do you write up your own contract? Purchase one? Go to someone else to deal with it? And when you have that, the seller is ok with just signing it without recieving any money untill you find an actual buyer for the house?
I guess for someone to actually breakdown the entire process, dummy form, for me would be greatly appreciated! And maybe even how your first wholesale went and how you went about doing it, I enjoy reading real life success stories…Thanks in advance for any replies
I’m not a lawyer and am not giving legal advice. Use at your own risk.
Use a contract from a real estate agent or broker with a license. A standard contract reduces scrutiny from lawyers and others.
An assignment contract is simpler. Perhaps one can easily find one by doing a google search.
Contracts often require consideration or money to make them legal. This could be as little as a dollar, or ten dollars and some sellers require more.
Find a motivated seller, determine value of the house (70% After Repaired Value or ARV - holding costs - closing costs - other costs), negotiate and fill out and sign contract, find a buyer for the house and sell the contract to the buyer.
If a person is just getting started in wholesaling. I always tell them to first get a solid course on wholesaling and then fill in the blanks. It is nearly impossible to learn wholesaling just by reading posts on forums. Even if someone gives you a copy of their contract, it still does you know good if you don’t know how to alter it to fit your situation and give you the protections you need.
Get plugged in with a local real estate investment club and network your tail off till you find a mentor of some sort. Ask them for the forms you need and maybe offer to be a bird dog to get started.
Agree with all the post above!! Allow me to reinterate, PLUGG IN TO YOUR LOCAL REI CLUB and GET A SOLID COURSE TO GET YOU GOING!! The one and only RE Guru I would ever recommend is Vena Jones-Cox. Get her Real Estate Goddess Wholesaling Course along with her Beyond the Motivated Seller which comes with a full marketing strategy that you can implement the second you finish reading the wholesale course (letters, postcards and all).
I always tell my students, go and get that buyers list built first so that you will know that once you get a property under contract, you will have it sold within a week because your buyers have already told you what type of investments they are looking for.
I would talk to Carlton Sheets first and foremost because he is the man…
then I would do this…
Get an agent contract for your area.
Add your own addendum to the contract covering your weak points.
Use that contract on purchases.
In terms of procedure…
If your doing an assignment you would simply use use “Your name and/or assignees” on the signature line of the purchase agreement. THEN use an normal assignment form that you can get just about anywhere.
If your doing a pocket llc. Then you’ll just put the name of the llc on the normal P/A and you won’t need an assignment form because you’ll be selling the llc instead.
If your doing a purchase option then you’ll just need a purchase option form then you’ll use a normal P/A with your buyer. No need for an assignment form.
Then run everything by Carlton Sheets because he is the MAN
Buy Steve Cook’s course. Best 297.00 you will ever spend. Go to your local REIA group and hand out cards like a mad man and start networking. I disagree with having a buyers list first. I tell my students that if they get a smoking deal then they will have investors all over them wanting it. Buyers list are fools gold in a way. If you have 30 buyers maybe one or two are legit.
But with a good deal you will get many people that you don’t know that are buying.
Go to your local title company or lawyer and get the standard docs for your state. There are many one page assignment contracts that you can use for your assignments with fsbo sellers. Keep in mind if your wholesaling reo’s then you have to go different routes but easily can wholesale them as well.
But…the most important thing about any of this is to just start taking action! No action…no results or mistakes that will help you launch your career,
If you have no buyers situated to get off these homes, then you will need to take the time to get them. So many people have their own way, but I’ve tried them all trust me, and this is truly the fastest way to get a check wholesaling.
First of all thank you for all the replies to this post, the info was really helpfull.
Second, ive been moving (in my wholesale investing), but i feel as if its been meandering in the wrong direction. Im still researching and continuing to learn…but last week i put out about 20 bandit signs on busy intersections, freeway off ramps. Now i know 20 isnt much, and in return i got 0 zero calls. My signs were 12x18 white corragated plastic with big black lettering - I buy houses xxx xxx xxxx. Any suggestions on what I am doing wrong? :banghead And internet posting on CL has yeilded no calls either. Again I know, not much marketing
Lastly, i went to my counties recording office today to get property lists and they said they had no such thing; absentee owners list, property tax lists etc… Is there something specific to ask for?
I am very anxions to get the ball rolling in my wholesaling efforts so any advice for finding motivated sellers, networking, marketing, etc is greatly appreciated. Thanks :biggrin
I hope you quest on CL was to be looking for cash buyers. That is almost a flawless move. If you post a house on CL you will indeed get calls. Make that thing look super attractive. You will get some good calls. Make sure you post some in you surrounding cities also, as these buyers usually are open to deals in your city too.
PHXAZ, as far as bandit signs go you need a better color scheme for your message to stand out. I’m doing purple text on yellow background. I’ve been told that black text on white goes unnoticed. Also, have the message be printed professionally for best results.
One more thing, the “I Buy Houses” phrase is a bit tired, try something fresh like “I PAY CA$H FOR HOUSES”. Always keep the message short, simple, and complete. It’s just meant to get the phone to ring.
Try putting your signs out at local supermarkets where people exit the lot. Put them at the stop-light exits for best results.
Other color schemes to use are:
Blue text on white board
Blue text on yellow board
Black text on yellow board
Purple text on yellow board
Hometown sport team colors
You want the signs to look ugly as possible color-wise to get people to sell you their homes.
Strangely enough, I’m told that handwritten signs are best for SELLING houses, not buying them.
P.S. I am also told that it is best to have a 7-digit local cell number on the professionally printed signs. You want potential sellers to know that you are a local buyer and not some far off corporation. “1-800” type numbers tend to scare sellers off. Don’t bother to even put an area code in front of your local cell phone number unless you really have to. I am in a ‘513’ area and only gonna put signs out in the 513 area so it’s not necessary for me to put the ‘513’ on my signs.
