My husband and Myself are new to the wholesaling game. We have read different programs on wholesaling but are still confused about how to get people under contract with no money down etc. We do not have the finances to purchase a house and would like to do no money down deals. 1. What would be our first step? We are very serious about taking control of our own future. Since my husband got laid off from a job he had been working 19 years, we want to learn all we can. ;D
I am in Houston and do some wholesaling. When you put a house under contract, you’re not putting any money down. If you are required to give Earnest Money (in Texas we are) you generally have 72 hours to do so. You should set up a list of buyers first, know exactly what they want so when you get a contract you know exactly who will buy it and then the buyer puts up the earnest money. You should never do that. If you don’t have an established network of buyers yet, but you have a very good deal, I say contract it. When the deal is good, you will ALWAYS have a buyer, you will just have to work harder and contact more investors to find one.
For example, my first deal was putting an $800,000 house under contract for $525,000. It was brand new and needed less than $1000 for some paint. With almost $300,000 in equity I had buyers lined up around the block without an established network. It was while trying to sell that deal, I got a list going. I made $70,000 on my first deal and was hooked.
It’s not often I hear sucess stories such as yours. I’ve been in this business for years now.
But on the sidelines. Sidelines being the hard knocks of being a bill collector for two of the largest.
But reading your posts and other’s may inspire me back into this business. After losing my job because of the banks and agencies they have collect for them I’ve been left unemployed in St. Louis. It’s hard to go back to their bs when I know there’s good deals to have if you have the right network going. I know how to locate deals on a national basis as the accounts I handled were national all from here in St. Louis.
So I’m well versed in finding properties just from a foreclosure listing…then due diligence for the note sales that can bring in optimum returns if you have someone attempting to finding nothing but these deals. But have been left with having to find legitmate investors…Please advise the best way to find them. Cause I know how to make and get some great deals with the contacts I have.
Kathy, building a list of buyers is trial and error and you won’t know which buyers are true buyers and not wasting your time until you close a deal or two with them. You often find that many other wholesalers call you claiming to be buyers. This isn’t always a bad thing. Networking is networking and you never know when you’ll have a deal you need to sell quickly and can’t find a buyer for. I have one right now with $700,000 in equity and on a deal this size if I were to have problems finding a buyer, splitting the fee wouldn’t be much of an issue because it’s big enough.
The best way to go about doing that is going to your local investors club and just start meeting people. Go to the foreclosure auctions and see who the bidders are. They are the ones with cash. Introduce yourself and tell them you are a wholesaler and would like to know their criteria. If you have an established list of buyers and know what they are looking for, you’ll always e able to sell your deal. It’s simply putting in the leg work. Let your fingers do the walking, go to your investor club meetings, look for local websites. If the deal is good enough you will always have a buyer.
Initially, as a new wholesaler, you only need 3 good buyers. With 3 cash buyers, you’ll always have at least one that is interested in your deal (as long as it IS a deal). As you develop, you’re buyer’s list will grow.
An easy way to start a buyer’s list: If you find a deal with equity like Aithne did, simply advertise it in the papers and take the calls (be prepared for the phone bill though). Out of 100 or so calls, you should be able to find 3 good buyers.
We are very serious about taking control of our own future. Since my husband got laid off from a job he had been working 19 years, we want to learn all we can. ;D