Is there a step by step process to doing a wholesale deal?
I’m sure there’s a post out there somewhere that has the step by step process on doing a wholesale deal for the beginning wholesaler. I’ve tried doing a search but haven’t found it. I want to start wholesaling but have got alot of basic questions about the process. Here’s a few of my questions:
After I’ve found my prospect, what paperwork do they need to sign to for me to control the property? I’m assuming a RE contract but is there anything else?
After the property is under control, what’s the next step? WDO report? Title insurance? Title Company? RE Attorney?
As you can see, my questions are rather basic… Thanks for any help.
before you locate the prospect, you need to make sure you know what other investors in your area are looking for and what is a good deal. Now, assuming you have that work done:
The paperwork varies from investor to investor, the basic ones you will need are:
RE Contract and its required addendums if any
So, lets say you found the property and you now have it under contract, now what? You need to get a contractor estimate of repairs if you can’t estimate the repairs yourself. Place an ad in the paper or contact investors.
Title insurance and title search depends on what happens if you can’t find someone to wholesale it to. Are you going to close on it and keep it yourself or give up the earnest money you gave the title company?
Title insurance and title search depends on what happens if you can't find someone to wholesale it to. Are you going to close on it and keep it yourself or give up the earnest money you gave the title company?
I’m not sure what I’d do if I couldn’t find someone to wholesale it to. There would have to be a reason that an investor wouldn’t want it. If I estimated repairs incorrectly I’d have to re-negotiate with the seller for a lower cost because of unforseen repairs.
Let’s say that I do have an investor to assign it to. Would it be my responsiblity to get title insurance or is that something the investor would do? If I do, is that title insurance paid for at closing or whenever the insurance is purchased?
Your end buyer or seller will pay for the insurance. The reason I am not giving you clear answer is because some wholesalers will get preliminary title report and then leave it up to the end buyer to decide if they want an insurance or not.
If the seller is paying for it, then you could get it but the title company may keep the earnest money if you back out.
Now as a general answer, don’t get title insurance or title search unless the property needs to be sold within couple of weeks. You should be able to find a buyer within a day or two if the numbers are correct and they can do all that leg work.