Wholesale question - Posted by Mike

Posted by Dwan Bent on July 11, 2002 at 23:43:44:

Hi Mike,

Lots of good questions about wholesaling. When I tie-up a property with a homeowner I am honest with them and tell them I am going to have someone else actually close the deal. Run an ad in the paper that says… handy, cash, great deal, with a phone#…

You’ll get a ton of calls. Keep all the #'s so you can build a buyers list for the next property. I tell people to drive by and then call if they are interested in seeing the inside. Then pick a time when the homeowner can be gone for a few hours and show it to everyone at the same time. A homeowner in distress should be more than willing to assist you in showing the house. They need out of the deal and you are their answer.

If you are worried about he homeowner not helping… tell them you are sending your handyman by and to let him in. Be CERTAIN the person won’t try to go around you.

As far the actual closing, there is no need to do a double closing unless the property is bank-owned. Banks do not allow flips anymore, but homeowners don’t care. They don’t usually know the difference. I only double close if my assigment fee is really high and I’m afraid my end-user or investor will be upset. Anything over $10,000 I usually double close. I’ve made as much as $54,000 in one deal!!!

Good luck to you.

Sincerely,

Dwan Bent

Wholesale question - Posted by Mike

Posted by Mike on July 10, 2002 at 19:23:50:

Ok, You find a house you can get at a bargain price. You go into contract and want to retail it now. You’re in contract with the seller.

  1. How do you get interested buyers to see the house so you can retail it if the seller knows that you are in contract?
  2. Wouldn’t the seller turn your potential buyers away if they are in contract with you?
  3. Or what if you, the owner of the contract, want to show the house to potential buyers?
  4. And lastly, do you ‘sell’ the contract to the new buyers or do you go to the closing and do a multiple closing?

So confusing!

Thanks for any help.
Mike