Hello,
I’m thinking about wholesaling a property I have under contract. Can someone please tell me if I’m missing any steps on wholesaling a property?
Did I leave any important steps out?
Thanks!
2 before 1
I am not sure how you do # 1 without first doing #2
RE: wholesaling steps - Yes, 1 b4 2
You have the basic concept right - I hope you have the personality and tenacity, because those are 2 of the most critical components you need.
You’re also going to make mistakes and fail to assign/sell some of the contracts you negotiate.
Few people hit homeruns all the time - especially when you’re 1st starting out.
That reply that said 2 before 1 is not correct.
1st, learn everything you can about contracts - how to put an offer together that will provide you with adequate time to market your contract/house that contains one, or more, escape clauses, should you fail to assign that contract in the time specified in your contract.
There’s lots of steps that you’re going to have to work out, and be comfortable with, before you pencil that 1st offer.
Once you have a handle on contracts, you need to determine who is going to talk to the seller/seller’s agent - who is going to present YOUR offer.
Once you have the above worked out - you’re still NOT ready to present your offer without knowing your values in the markets in which you choose to operate.
You have, absolutely, got to be that “local expert”, as it’s the only way you’ll ever have a chance of running for a touch down with your 1st assignable contract.
Ok, having all the above worked out - now you’re ready to hit the streets and pencil that ASSIGNABLE contract.
Me - I use state standard MLS contracts and addendums.
Why ? Because all the money has been spent on making this contract legal/state approved, right ?
Also, because people will be more comfortable with contracts that they know and recognize - especially if ANY of your deals will be running through any real estate agency/brokerage.
Congratulations, now you have your 1st offer accepted and you’re ready to find your buyer.
YES !! You get the house 1st, THEN you market for your buyer.
Why ? Do you really expect to find a buyer when you have nothing to sell them, other than some stupid statement "Well, I’m going to be getting houses under contract for deep discounts and I’ll need buyers who can, quickly, take advantage of those opportunities ; )
Yeah, right !!
Next point - people will lie lie, lie.
Your buyers who said they’ll buy, well - they won’t.
Some buyers will wait out your contract and go in behind you to make their own offer - thereby eliminating you from the deal - yes, it happens.
THAT is why you need to know your markets WELL.
This way, that deal you contract for WILL sell before your contract timelines expire.
Online and offline (good old fashioned “local” newspapers/publications) will be your best avenue to market - as well as bandit signs.
There’s LOTS more info I can give you, but get the above down, solidly, and you’ll be on your way.
Great luck to you -
Mik
CashBuyerHouses
Yes, one big step was left out. What if you don’t find a buyer for the price/terms you negotiated? Do you have the ability to close yourself?
I’ve seen more than a few people end up getting foreclosed on, because they worked a deal with someone who couldn’t perform.
Do you want to be that person?
I would suggest having a plan to be able to close yourself. Otherwise you will lose credibility real fast.
–Natalie
[QUOTE=dolphin;884091]You have the basic concept right - I hope you have the personality and tenacity, because those are 2 of the most critical components you need.
You’re also going to make mistakes and fail to assign/sell some of the contracts you negotiate.
Few people hit homeruns all the time - especially when you’re 1st starting out.
That reply that said 2 before 1 is not correct.
1st, learn everything you can about contracts - how to put an offer together that will provide you with adequate time to market your contract/house that contains one, or more, escape clauses, should you fail to assign that contract in the time specified in your contract.
There’s lots of steps that you’re going to have to work out, and be comfortable with, before you pencil that 1st offer.
Once you have a handle on contracts, you need to determine who is going to talk to the seller/seller’s agent - who is going to present YOUR offer.
Once you have the above worked out - you’re still NOT ready to present your offer without knowing your values in the markets in which you choose to operate.
You have, absolutely, got to be that “local expert”, as it’s the only way you’ll ever have a chance of running for a touch down with your 1st assignable contract.
Ok, having all the above worked out - now you’re ready to hit the streets and pencil that ASSIGNABLE contract.
Me - I use state standard MLS contracts and addendums.
Why ? Because all the money has been spent on making this contract legal/state approved, right ?
Also, because people will be more comfortable with contracts that they know and recognize - especially if ANY of your deals will be running through any real estate agency/brokerage.
Congratulations, now you have your 1st offer accepted and you’re ready to find your buyer.
YES !! You get the house 1st, THEN you market for your buyer.
Why ? Do you really expect to find a buyer when you have nothing to sell them, other than some stupid statement "Well, I’m going to be getting houses under contract for deep discounts and I’ll need buyers who can, quickly, take advantage of those opportunities ; )
Yeah, right !!
Next point - people will lie lie, lie.
Your buyers who said they’ll buy, well - they won’t.
Some buyers will wait out your contract and go in behind you to make their own offer - thereby eliminating you from the deal - yes, it happens.
THAT is why you need to know your markets WELL.
This way, that deal you contract for WILL sell before your contract timelines expire.
Online and offline (good old fashioned “local” newspapers/publications) will be your best avenue to market - as well as bandit signs.
There’s LOTS more info I can give you, but get the above down, solidly, and you’ll be on your way.
Great luck to you -
Mik
CashBuyerHouses[/QUOTE]
Thank you for the explanation and I know what you said was just the tip of the ice berg too. There’s much more to learn. Thanks again.
[QUOTE=Natalie-VA;884093]Yes, one big step was left out. What if you don’t find a buyer for the price/terms you negotiated? Do you have the ability to close yourself?
I’ve seen more than a few people end up getting foreclosed on, because they worked a deal with someone who couldn’t perform.
Do you want to be that person?
I would suggest having a plan to be able to close yourself. Otherwise you will lose credibility real fast.
–Natalie[/QUOTE]
Well, if the deal is good, I would do have the finances to close myself. I was just thinking that I would reach a point where I might have too many deals and not enough funds in which I would wholesale them out. And of course, I would have some escape clause in case I can’t find a buyer for it. Thanks for your input.