A wholesaler in my town has a property for sale at 69k. He is letting me find a buyer and is letting me add whatever i want on top which is going to be 6k.
I have the property listed for 75k on various websites and i got a call today that someone wants to see it tomorrow. If the end buyer has some questions that i wont be able to answer since i am new at this, how can i bring my wholesaler buddy into the picture without me getting burned ? What form(s) would i need to fill out and with whom. I need complete intructions.
I use a flex option to purchase agreement when I’m wholesaling other wholesalers’ deals. If a buyer calls or e-mails me questions I can’t answer or they need to visit the house, I pass the info to the 1st wholesaler. I just tell the end buyer I need to pass the info to my partner (which he or she basically is). They (the 1st wholesaler) know how much I’m advertsing the property for. If the property sells at my price, the 1st wholesaler will send me my money.
You have to have some element of trust. Relationships not based on trust aren’t worth having. Investors usually don’t burn other investors. It’s bad for business.
Me too.That’s great, DemoL, I did’nt know about flex option. Now I have to find how to use it and what forms I need. Im doing a deal now that would be great for a flex option.
You hit the nail on the head. You said everything I was going to say to him. There are little tweaks in there where you can have more control in some aspects of it, but overall he guided you correctly.
The process is fairly simple. There are only so many questions an investor can ask if you are flipping bank owned homes. There are no mortgages so any questions about mortgages, and owner financing are not an issue. There are no liens(actually every so often you could possibly get one with liens even from a bank)
About the biggest thing you will be asked is the nature of the repairs, or do you own the home. Questions like that which if asked you just be bluntly honest as you can but with a confident tone.
If they ask you about repairs and you are not sure then you tell them it’s just a rough estimate but ultimately you(the investor) will determine what it needs. Everyone does their own rehab to a certain depth that they like. If you just don’t know then say you are not certain but I will try to get you some more specifics to help you see the deal better. Then you refer to the chief wholesaler or whoever you got it from to find out more.
If they ask you if it’s your home, then tell them that you don’t own the property but you have a contract and you are wholesaling the deal. Most investors(not all, some won’t even buy a deal from wholesalers and they will tell you that) can respect that because they run into it alot in the marketplace
anyway. Worst thing you can do is LIE! Most of it is just listening and responding back more than it is you doing a bunch of talking. The more you talk the more you lose out in some cases.
These are about the two biggest things you will be asked