I’m fairly new to the real estate investing world and have been looking into the wolesaling practice for a few months now. I dont want to get stuck in the “Analysis Paralysis” stage so any advice and tips would be greatly appreciated.
Now I have a small but growing list of buyers and a few listed (been in contact with a few realtors) and non-listed properties. I really want to get a deal done but like with any other rookie i want to be sure it is done right. I would like to know from any seasoned vets what steps i should take next to complete the transaction. I have a couple referral agreement documents of my own, but would like to know which ones I SHOULD use and any tips and pointers moving forward.
Do you have the non-listed homes under contract? Do you have your real estate license? I thought you could not sell property you don’t own without a real estate license? That as a wholesaler, what you actually sell is your interest in the assignable sales or option contract.
Maybe ogonzalez3 can send out the street addresses with the block numbers like “900s block of Main St”. But I personally don’t like the idea of sending out a bunch of properties to my buyers that I dont control, and then when they are interested, I cant deliver. I am new too and I don’t want to get the reputation of someone who cannot deliver.
Any one can make a written offer to buy someones property. In the offer when you enter your name as buyer you also place in that space “or assigns”. Then when you have one of your buyers interested and you reach an agreed upon assignment fee you write your buyer a assignment letter assigning the contract to buy to them.
So I just sent a contract to a homeowner today, making a cash offer on his property. If he signs the contract, I plan to wholesale the deal to an end buyer. Can I call up my buyers and say hey I have a house for sale at 123 Main St for $XXX,000, before he signs the contract? I don’t actually own the house nor do I have a ratified contract with the person who does own the house. If I don’t have a contract, what am I trying to sell to my buyers? I am not a licensed real estate agent, I don’t think I could legally represent the seller and try to sell his house for him and collect a commission.
Plus if I send out my addresses to my buyers before I have the properties under contract, someone could try to go around me and make a deal directly with the seller.
yeah your absolutely right they could possibly try to go around you… so wait til you have them under contract…as a wholesaler your selling your interest in the property not representing the seller like a agent… so for example basically you’ll get it under contract then show your buyers hey i have this contract to buy this home for $xxx would you like to buy my position in the contract for (your wholesale fee)…
Assignable purchase contract. You tie up the property at a low price and great terms then assign your rights to an end buyer.
Assignable option contract. Where you pay the owner an option fee to be able to purchase the property for a specific amount of time for an agreeable price, then sell your option to an end buyer.