Ok. Here is my problem. I have a strong list of buyers. check. I have sellers. check. All I need now is the paperwork to put both seller and buyer under contract and I need to know what to do next? Do I put my name as buyer under contract with the buyer? Do I use the same contract for buyer/seller? How do I use the title company. I am lost. I live in Michigan. Thanks.
It’s good to see you got your ducks in a row…way to go.
Anyway all you really need is a regular real estate contract with a escape clause added on and an assigment form.
on the regular P/A sign “Your name and/or Assignees” then have your buyer sign the assignment contract.
You can look on ebay for some inexpensive wholesaling courses as well. i have bought alot of investing courses there.
Hi. Thank you for replying back, but I am still lost…
It looks like you’ve taken some steps to educate yourself on the process, but it looks like you’re
still a little confused about what to do next. Did you buy some guru’s real estate investing
course or a book to give yourself some training or are you just flying by the seat of your pants?
If you are, it’s not the end of the world, because it looks like you’re getting somewhere, despite
your lack of knowledge about what to do next. Do you know a more seasoned investor in your
area that can show you the ropes? Because it looks like you could really use some “hands-on”
guidance in the step-by-step process to how a deal should go.
I recommend you either get a good, detailed book, some kind of education, or tag along with
someone who can mentor you and show you how to avoid some of the pitfalls and other
mistakes that can sidetrack a new investor.
Start by qualifying a few of your buyers. This is accomplished asking them a few questions about what they can bring to the table and what they are looking to do.
Find out how much in total they are willing to spend on any deal. The amount should include the max they are willing to buy a property for, the max down payment, the max monthly mortgage payment and the most they want to spend on repairs. If they don’t have a clue on any of these items, pass on them.
Find out how much income they make if they are planning on getting a loan. In today’s market the minimum household income an borrower needs to be at least 4 or 5 times as much as the monthly payments on the amount they want to borrow from a bank. For instance for a $70,000 investment property where the monthly payment is $600 per month, the borrower should have income of at least $3,000 per month. Out of that income the person should be able to comfortably afford to pay their own living expenses and the cost of the home. The income and the credit is the key to most buyers. Without it not much is possible.
Find out the type of property that the buyer is interested in and the part of town that it should be located in. This will enable you to streamline your property search and focus only deals with potential.
Find out how quickly the buyer want to move forward. If they want to buy within the 90 days you may have a winner. If not, pass and move on the one that does.
Have the buyer show you proof of funds before you do any work for them. That way you’ll know if the are really serious and what they are actually able to do. Proof of funds is a bank account statement or a letter from a lender that states how much they can borrow on any home. If they have decent credit they’ll be able to fund a deal, if not they need to be able to show an account statement that shows a large amount of cash. If you don’t get this info, you’ll be in for a BIG disappointment (ask me how I learned this).
Once you know what the buyer is qualified for and willing to do, start looking for them a deal. Make sure that you focus in the area and price range desired. If you aren’t able to find them a deal, check out the websites of the wholesalers in your area to see what they’ve got. If they have some thing that works, ask the wholesaler if he or she would be willing to compensate you if your buyer was able to purchase one of their properties after you have shown it.
Try to find about 5 to 7 properties for the buyer to look at with the next two weeks. All of these houses should be a fit for what the buyer wants to do. If the buyer can’t make up their mind after the 7th, I would move on to the next buyer.
Once the buyer has decided on the property that he or she likes, it’s your job to structure and manage closing out the deal.
You are going to have to refer to the courses that you have purchased for more info on finding and screening houses and on structuring a deal. Get an understanding of how all that works, before you start spending a bunch of money on marketing.
Another route you may want to take is becoming a property locator for one of the established wholesalers in your area. That way, you’ll learn how to find and evaluate deals for free while earning money. just visit your local real estate investors association to find one or do a google search.