Lot of Wholesaling Questions.

Can someone please tell me if I have the process down in my mind?

1)Find property
2)Figure out if worth pursuing via comps, tax records, offer, arv, rehab costs, closing costs, 3-4 months of mortgage payment.
3)Approach seller, strike a deal
4)If deal is reached have seller sign purchase agreement, gibe small earnest deposit.
5)You then have a certain time to find investor to buy contract and move forward with closing.
6)If you dont find a seller then you buy and continue to look for an investor or do the deal yourself.

Dp you have a title search or inspection done, or the investor?
How do you go about showing property to investor?
Do you show up at closing?
When do you get paid, when handing over contract or at closing?
How is it taxed? As employment?
What is a reasonable fee?

Any help would be great, Forgive the amount of questions but I may have to go to someones house who called me, I want to know what I am doing.

Howdy Njbirddog:

I will try to help a little:

4)If deal is reached have seller sign purchase agreement, gibe small earnest deposit.
Do not give earnest money to seller. Make check payable to title company. Take contract to title company and order the title search. Usually done at no cost in anticipation of doing the closing and selling a title insurance policy.

Best to work with vacant houses that need lots of work. Then you can get access easily. You should be able to get a key or have the rear door to stay open. Get a combo lock box if you get a key. You can even let folks look without meeting them.

If you are getting a check then show up at closing. If you have already been paid then you would not bother.

Some get paid at closing and some get 50% at signing of agreement and balance at closing. Some may even get paid all before the deal closes. When I am the buyer I want to wait to pay it all at closing.

Self employment income subject to social security. You may want to set up some sort of Corp or LLC that may have a lower tax rate and no SS tax.

The fee varies all over the place. 2 to 3 grand is a good fee and up to 5 grand perhaps. Anything over that and you may want to do a double closing.

Hope this helps LOL

LOL…thanks again Tedjr.