Hi everyone!
I am just starting out and I am of course broke with bad credit. Also I am not sure who I should even be talking to. I have been listening to the audios on this site and taking note, but I definitly don’t have the money to buy any of the things they sell.
I want to wholesale properties and I know there is a lot of potential in my area (southside of Chicago). My problem mainly is that what do I do when I find a good deal. I can work the numbers but that’s it. What comes next, do I tell the seller that I will buy the property eventhough I have no end buyer, do I need to have other investors ready? As you can see I need a lot of help!!! Any comments would be greatly appreciated.
Thanks
Hello,
It’s a good idea to already have investors lined up. You don’t want to “get stuck” with a property and you don’t want to “promise” an owner you can help them when you can’t.
Start at your local REIA meeting, find investors, find out exactly what they are looking for (type, price range, area, etc) & then go find them what they are looking for.
The “mechanics” of what I consider wholesaling is that you put a property under contract to purchase and then assign (or sell for a fee (at closing) the contract to an end buyer (investor).
Chris
Ok, so before you even think of going into birddogging or whlesaling you have to have investors/end buyers to buy the property immediatly. I can undestand that. So what does it take to get these investors to work with you, especially since I am new and do not know exactlly what I’m doing? Also do I have to have form/contracts on hand to be able to do this? The main thing that I don’t understand and am triying to figure out is how exactlly to do this with none of my own money, because I have none!!! What steps should I take to do this correctly? I don’t have much time and have to figure this out by the end of the month!!!
PLEASE HELP!!!
Thanks,
Adam
All of your questions can be answered if you search around this site, and other sites. Google for “wholesaling properties” or “wholesaling homes” and see all the information that comes before you.
-or-
Take a specific item that you are interested in, say wholesaling forms, then click search at the top of the page and many many topics will come up on that specific interest/problem.
You are asking for a step by step system on what to do to make money, and if it were that easy everyone and their grandmothers sister would do it.
Good luck!
wholesaling real estate is very simple, Don’t complicate it:
This is a very basic outline of the steps to wholesaling a home.
1st Build a buyer’s list-A strong buyers list will one of the most important aspects of your success as a real estate wholesaler. Be sure to build your buyers list before tying up any home under contract.
2nd Find Homes that meet your buyers needs- Once you have your buyers list in place it is time to start looking for great deals on homes that fit your buyers criteria.
3rd Put the home under contract with an easy out clause- Once you have located a home that meets the criteria for your buyers, you will need to put the home under contract. Include an easy out clause in the contract in case your buyers decide that they do not like the home.
4th Get your buyers through the home- Bring all of your buyers through the home to see if it meets their needs.
5th Assign the contract to you buyers or sell them the home-If the home meets their needs then you will need to establish a price that you are willing to sell them the contract for, or a price that you are willing to sell them the home for. If you are unable to assign the home then you could use a back-back closing instead. If do put the home under contract with your buyer’s then be sure to get a deposit from your buyers that is at least equal to the amount that you could lose if your buyers decide to back out of the deal.
6th Use your easy out clause- If your buyers do not like the home for one reason or another use your easy out escape clause to terminate the contract. The process ends here if your buyers do not like the home.
7th Set up a closing and get paid-If you are assigning the contract you may have already sold your position to your buyer, in this case you may have gotten paid already. If you did not get paid for selling your position already then you will be waiting for your buyer to set up a closing, and at the closing you will be collecting your fee.
Keep in mind that every person who currently wholesales homes started out not knowing a thing about the business.
the forums are a great place to learn, but be sure your learning from people who “do” wholesaling, rather than people who “read about” wholesaling.
Thanks so much for the advise so far, every one of you guys have been helpful. It is nice that this site has a good resource such as this to learn from.
Another question I have is should I advertise to build the buyers list or what else can I do? Like I said my money is limited to almost nothing so if there is a cheap way to get this list I would love to know! I know that I can go to my local rei meeting and probable meet people but it costs $100 and I don’t have that much money now with christmas around the corner.
I really want to make this my career and have been dreaming of doing this for almost 10 years now. I just basically need a good push to get going and I believe that there is no better way to learn then by trying it out.
I would say YES! Advertise to everyone everywhere you go. Look for a REI club within your budget or make it fit into your budget. (If you want it bad enough you’ll make it work without killing yourself financially) Find a way to get a magnetic sign for your car that promotes what you do. Get business cards that say it (www.vistaprint.com) You can get either 250 or 500 for free, just pay shipping. That’ll get you started.
I started out not too long ago and I tried these very same things (except the car magnet) and now every time my phone rings I know it’s about real estate. I had to create 2 seprate emails for rei alone. 1 for buyers and 1 for sellers. It’s not as hard as it seems. I was just as broke as the next guy and my credit was a real live nightmare but I really didn’t spend much to get things up and running. Now I can afford to spend a little more and it’s all paying off beautifully. Best of luck to you and NEVER give up. If this is truely your dream then don’t let anyone or anything steal it from you.
Awsome advice xelkwonx you and the others that help “NEWBIES” are the reason this site is what it is. Thanks for helping to everyone that responded to my post. I am going to work on the deal I have and will post to let you now how it went.