Im looking for a guide that explains a little bit of everything from start to finish in wholesaling. Im mainly confused about how to get it under contract, weather a sale or option, and how long on the terms? Any help would be greatly appreciated. Im sure i speak for several of us that have an idea, but havent found a step by step guide to wholesaling.
Thanks
Hi Tim,
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Wholesaling is when you find a deal and put it under contract and then sell (or assign) the contract to a rehabber who then closes on the property.
Example:
Find a deal where the after repaired value is $200k that needs $10k worth of work.
Know that in many areas a rehab investor would buy this between $125k - $130k. So you need to put it under contract for less than that.
You write up a purchase offer for $120k and have it accepted. Then you assign your contract to the rehabber for $125k…you make $5k at closing.
There are other ways to doing this but this is the simplest explanation.
Chris P