Actually, I have a couple of issues…
I have received a list of properties that have been on the market in my area for more than ninety days. What are my next steps from a wholesaling perspective?
I’m trying to understand how is it that you can go to a closing with no money and “buy” a home from a seller? Wouldn’t the seller be expecting their money from the sale at closing? What am I missing?
Now you need to market to that list of homes! Get your phone to ring and them evaluate whether they are deals or not. When that is complete then you need to put a buy option on the property. Which gives your answer to the second question. You don’t actually close. You sell your option contract to another investor who will close.
No sweat my friend… Market these properties to your list of Buyers and see which particular properties are getting the most attention from your buyers. Once you have figured out what properties are worth marketing, market those!
Now there are one or two ways you can do this, with no money out of your pocket:
If you are dealing with a private seller, the best strategy for you to do, since you are a beginner wholesaler, is to make sure the original contract between you and the private seller is assignable. This way you don’t have to worry about closing on the property. Your end buyer has to close on it. This keeps you from having to pay any closing costs in the deal. You walk away from the table with net profits. So if you put the property under contract with the seller for 50K, then assigned the property to your end buyer for 5K, which brings your end buyers total purchase price to 55K. At the closing you will recieve a check all net for 5K!
With bank owned properties (REOs) these properties are not assignable so you have to structure them a little differently, but it’s definitely not rocket science. Once you have found an end buyer for your property, go ahead and put the house under contract with them. You can still get paid by executing a “double close” or “simultaneous close” A double or simultaneous close are two transactions that close back to back in the same day. The first transaction between you and the seller will be your A-B and your second transaction as you being the seller of the property to your end buyer is the B-C. Consult with your local title companies to see if they are familiar with Double Closings and Assignments
Hope this helps! To your success :beer
You should definitely market to those homeowners and talk to them! Find out their situation and motivation for selling. Then, do your research and come up with your offers. Let them know how you are an option and what you can do for them. These people already have an idea about how it’s not easy to sell their properties. Do your thing.
Once you get a property under contract, you’re going to have to market for buyers who will buy your rights to purchase the property. That’s how you will make your profit. Yes, the seller will expect their money at closing but it’s the Buyer’s money who you have assigned your rights to.
Good Luck. I hope it’s a good list and the rest is really up to you. :smile
According to me you should contact the homeowners of this area.Or you can contact any real estate agent because they know all the real estate market strategies with a bunch of good selling capability.After understanding the whole process try to find out online research of the property of this area.If you get a proper listing of your property under contract then you could easily move down into real estate market.About closing cost it is the buyers right to put attention on the given property.Provide a transparent list of your work.