The Step before assigning a contract

Bird Dogs, Wholesaling
1

Okay, I understand the bird dogging idea and buying wholesale properties…Say you found a property and have an accepted offer at 40-60% below as-is market value with a seller…You also found a buyer for the property how is this process set up to close? Do I find a title agent or company before finding the deal and establish what I would like to do in the future? or get the deal then find a title company to work with, or what? I need the A to B to C to D run down of what is going to happen. Please, be as specific as possible…Pretend I am am in elementary school and you really want me to understand. Also, is a title agent the only team member I will need in this deal or do I need a realtor attorney to also be apart of the deal? Help!!!

2

The answer to that is a tough one. It really depends on your state law, how your buyer is purchasing i.e conventional lending,cash, hard money etc, and how you need to be paid. More info is really needed from you to answer that.

3

In Texas these are the typical steps.

  1. Find Investors and find out what amount of equity are they looking for, what area, etc…

  2. Find those properties, get them under contract. Where it list buyers name on the end of your name or company name put and/or assigns. I have an addendum that I inform the seller that I am an investor and will most likely sell it for more than they are selling it to me and I’m in this to make a large profit.

  3. I inform the investor I have a property under contract and this is what I will sell it to him/her for.

      Sidenote, the investor if having to get financing will have to go to a lender that does not care about title seasoning or it is a waste of time.

  4. If they agree I send both contacts to a title company that is knows how to do double closings.

  5. Lender approves your investor or they show up at closing with cash.

  6. Title company closes you and the investor.

  7. Title company closes you and the org. seller and you use the cash that you got from the first closing to pay the org. seller

  8. Title company cuts you a check for the difference between what you sold it for and what you bought it for minus settelment costs.

  9. Repeat step 2 to 9

4

Thank you so much for your input… I will make sure to do that.