wholesale process

I want to begin wholesale deals, this is my understanding of the process, please help me along the way, suggestions etc…
Find seller and negotiate a deal
Put property under contract
Find buyer/investor
Do double closing…
Now I get confused on the double closing. Do I tell the original seller that I am buying the house or that I have a buyer? Once the deal is ready to go, i do a double closing. There will be two purchase contracts (where do i get these forms), then i meet with the buyer and he brings the money and we sign the paperwork, then i meet with the seller and do the paperwork. And the title company will give me my portion of the money. Now, where i get lost it, the buyer and seller never have to meet??? How do they never find out what amount of money i am making. thanks for any help!!!

OK here is how it goes:

The seller does not care who buys the property all they care about is selling the property, getting their money, and getting that property of their books. If you’re dealing with a private owner, I could see them trying to be nosy about it…hopefully with a private owner they will feel the same way as the bank though, they just want it off their hands!

There will be a purchase contract between you and the bank, the bank will provide the contract (as far as I know), if you have any stipulations, you put them into the addendum and counter offer (IF I AM OFF A LITTLE - SOMEONE PLEASE CORRECT ME)

Then you find your buyer (unless you already have someone ready to buy), then you sign a purchase contract between you and the buyer. You will provide the purchase contract, make sure your contract is specific to your state so that you can ensure the terms of the contract can be enforced if need be.

The seller (bank) and your buyer, do not meet and do not even need to know about each other. You will do your double closing and close escrow for your purchase and your buyers purchase on the same exact day back to back. The buyer doesn’t “bring” the money, they will put the money into your escrow account.

Once escrow closes (your purchase completes and your buyers purchase completes), the escrow company will send you the difference which is your profit. (If you bought the property for 50K & sold it to your buyer for 60K, the ecrow company would send you the difference 10K) DOES ANYONE KNOW WHAT THIS TYPICAL TURN AROUND TIME IS? FROM CLOSING TO WHEN YOU ACTUALLY GET YOUR PROFIT??

With a double closing, no one will ever know what you are making on the deal. It keeps this information out of the loop, which I personally prefer. Don’t discuss figures with your buyer or the bank, it is no-ones business except for yours. All the bank needs is their money and all the buyer needs is their property, they don’t need to know what your making, that could make things very awkward and could even cost you the deal!

This is a very basic outline of the steps to wholesaling a home. I have used this same formula over and over again to generate huge wholesaling returns, so I know from experience that it works.

1st Build a buyer’s list-A strong buyers list will one of the most important aspects of your success as a real estate wholesaler. Be sure to build your buyers list before tying up any home under contract.

2nd Find Homes that meet your buyers needs- Once you have your buyers list in place it is time to start looking for great deals on homes that fit your buyers criteria.

3rd Put the home under contract with an easy out clause- Once you have located a home that meets the criteria for your buyers, you will need to put the home under contract. Include an easy out clause in the contract in case your buyers decide that they do not like the home.

4th Get your buyers through the home- Bring all of your buyers through the home to see if it meets their needs.

5th Assign the contract to you buyers or sell them the home-If the home meets their needs then you will need to establish a price that you are willing to sell them the contract for, or a price that you are willing to sell them the home for. If you are unable to assign the home then you could use a back-back closing instead. If do put the home under contract with your buyer’s then be sure to get a deposit from your buyers that is at least equal to the amount that you could lose if your buyers decide to back out of the deal.

6th Use your easy out clause- If your buyers do not like the home for one reason or another use your easy out escape clause to terminate the contract. The process ends here if your buyers do not like the home.

7th Set up a closing and get paid-If you are assigning the contract you may have already sold your position to your buyer, in this case you may have gotten paid already. If you did not get paid for selling your position already then you will be waiting for your buyer to set up a closing, and at the closing you will be collecting your fee.

Keep in mind that every person who currently wholesales homes started out not knowing a thing about the business.