Wholesaling Basics 101

This is a new arena for me. (I'm all about buy & hold). Anita's been preaching this for a month, too. The more you girls talk, the more I listen!
You're really close to pulling me out of my safety net. lol

Rina

This is actually less risky than buying and holding because you're not using your money or credit. You're not using a mortgage. You're in and out before it closes and you get a check! It's an awesome way to make some mula la!

Elena

The whole concept is GREAT! I'm just so used to doing what I do, it's more like habit, I think. You know, familiar. But I AM stepping out of my comfort zone. Just the few new things I've put in my journal are big steps for me!
It's good to "push" each other.

Rina

Elena this has already been posted in the forum but it is always nice to have something else to add.

http://www.deangraziosi.com/node/3783

I was just saying you've been talking about this for a month. And look at that. You posted that on May 9th! lol.
You two must feel like you're pulling teeth. Keep it up, though! You practice what you preach, so it packs a punch!

In awe,
Rina

I thought wholesaling was different from bird-doggin' but it does sound similar except for a couple of differences.

Elena

But isnt it nice that we now have them both link via this post so that others can see them. Information is key, knowledge is the lock

To me they both sound great. Keep posting, both of you! The more info, the better! You make an awesome duo!!

Rina

We could be the new and improved Sunny and Share!! Sunny: because you're light is so bright, you're the beacon we follow. Share: because I love to share, maybe too much... LOL!

Elena

We love your sharing nature LOL. And one more thing I was tring to find the post you made about the finding investers via the ads cant finded ofcours will find it when I don't need it. Do you know where you or what forum you posted it. Thanks MommaE.

I'm glad someone loves me... HA! Just kidding. I don't remember where the post is so I'll put it in this one for you to copy and paste ok?

Put this one in the house for sale section of craigslist.org and backpage.com:

HANDY MAN SPECIAL
3/2 RANCHER
CHEAP! $20,000 CASH DEAL
CALL: xxx-xxxx

Then this one will go in the houses wanted section:

HELP I NEED MORE INVENTORY!
Help, I need more inventory! I can't keep up with the demand of my investors! If you have any properties please email [email protected] or call
Lilie: xxx-xxxx

These will get you alot of responses. The best day to post them is on Monday. I did mine on Sunday and didn't get a lot of responses, but when I posted my friend's house I got a lot.

Let me know how you do!!

Momma E.;D

When a person starts out doing assigns (like you described above)what kind of a team do we need to round up?

I can see where we need to have several investors on hand to wholesale to...but realtors and a mortgage broker?

If we are only doing assigns at first will it be hard to find a motivated realtor who would be willing to work finding me pre foreclosures and foreclosures just so I can re-asssign?

If the realtor is also a investor he or she may say "why should I give you this deal to re assign when I can do that myself?"

This is just me trying to think of what a realtor/investor may say to me so I need be able to come back at them with a logical reason as to how they will benefit by helping me.

Sistreat, those are the same questions we all have asked ourselves. The best way to start the re assign process is to search for the right Realtor. I went through about five before I found someone who will be glad to work with me on re assigns.
Also, The younger Realtors just starting out might be more eager to work with you.

All you have to do is tell them exactly what you intend. Also that you don't plan on doing re assigns for ever. Once you get your business going you will bring them more and more business.

Zeek

I did mine without a Realtor. I did the contract myself, opened escrow, found the investor, assigned it to him and made all the dinero without having to share a % with a Realtor. If you feel more comfortable going with a Realtor make sure you include their fee in your assignment price. Not because I'm greedy but because I didn't have a good Realtor at that time... So it worked out better for me!

Elena M. Can you show us the contract you use for the assignment deal you did since you said you did the contract yourself and it worked. What was your assignment fee after your deal was complete? Did you have to go to closing to get your fee? A new team member

My assignment fee for that deal was $17,800! Plus I made all the money back that I put out for the deposit, partial payment on new roof and all my rent money, so I walked away from closing with a check for over $25,800. SUWEET!!
You can find all the contracts right here on the top of the DG site to the left in red letters it's under Student Resources, then click on forms and docs and you'll see them all there. Save them to your computer so can look them over whenever you need to, or use them when you've got a deal.

Well that is what I would like to attempt...making a deal without a realtor at first just to see how it works. But how would I find out comps to base my offer to the seller without the help of a realtor looking up comps in that neighborhood? How did you find out what other properties were selling forbeforemaking them an offer?
I have 4 ladies at church who are all realtors. How do you feel about mixing business dealings with close friends?

Another question if you don't mind Elena....you mentioned that you put up a deposit and partial payment on a new roof. Is this necessary if a person is just re-assigning to another investor? I can see where I should put up some earnest money when it comes time for them to sign.
I hope I am not bugging you with all these newbie questions. I have to get myself past this learning curve. LOL!

you said "if going with a Realtor make sure you include their fee in your assignment price"

Wouldn't the assignee be obligated to pay the realtor commish? The assignee has to abide by the sale agreement you and seller agreed upon....right?

Sissy,
1) At that time I was cruising neighborhoods everyday looking for FSBOs. Also any house that had a Realtor's sign, I'd pick up the flyer to see what it was going for in those areas. You can also get comps from any Realtor that you're working with just tell them you're interested in houses in that area and you want to see what the comps are. If the church ladies can get them for you, that's a great resource too. I didn't mind partnering with family or friends til I moved here, long story short, things didn't work out for me. If I did it again in the future I'd have both parties sign a contract, that way there's no misunderstanding or misrepresentation down the road.
2) I was looking to purchase this home for my primary residence, at first. I was in the middle of my REI training and learning a bunch of stuff like, 'try to get the keys before you take possesion so you can start working on it'. It needed minor rehab, nothing I couldn't do. The owner didn't feel comfortable giving me the keys, so HE suggests a lease option, I really didn't know much about them at that time but I agreed. In the meantime was trying to get a conventional loan, but my credit was bad so I couldn't get a good rate, long story short, I finally assigned it to another investor and got out of the deal altogether.

D,
That's all negotiable. You can decide who pays the Realtor fee in the contract. They'll either agree or disagree. I wouldn't use a Realtor on an assignment unless there's a huge profit margin there.

Feel free to ask me anything, anytime, it's no bother!

Elena
When you and the seller come to an agreement on a price...and they are aware you are going to reassign the property....do you tell them you are going to go open escrow or does the seller usually have an escrow company they insist on using. I guess it wouldn't make a difference? How much does it take to open escrow? Do you pay the escrow company upfront or do they take their money out of the final transaction? Is a title search necessary or will the investor you reassign to have to do the title search?
Sissy

The regular way when you you bey a house the seller or ther agent pick the escrow it already states in the purchase and sailles agreement what the escrow and the Title company going to be. If the tranaction is done true a mortgage broker or bank. And they (Bank or Mortgage company) order Title and escrow (all the partis will be notiefid what it will be. And you will need a title search it is a must sens you don't know if ther is any leans agenst the property. But you as the mittel man would not have to that as far es I know. Corect me if I' wrong Elena, Anita?

You open escrow when you get the contract back signed, the seller won't care unless they're investors too. Lilie's right, thank you dear! There are no charges upfront to do this, it all comes out at the end in closing. YES, always do a title search so you know there are NO liens and it's clean.

So even though I am just re-assigning a house over to an investor I need to be the one who pays for a title search? What does a title search cost now days?

Just trying to get all my duckies in a row here.

Well the title search should be done when you open escrow with the original purchase agreement. You can ask that the owner pay for it, in the contract. Then when you assign it that parts already taken care of. It's all in the itemized list of fees on the closing sheet. No out of pocket cost on that it's deducted from the sale. That's a good question, you should call a title company and find out. Something you can share with us here, although I imagine they vary,especially if they have to do an extensive one. But I could be wrong! It happens occasionally... LOL!

Well if they would turn me loose in there I would find that title and wouldn't cost anyone anything. LOL! As soon as I find out from our local title companys what they are charging nowdays for a title search, I will let everyone know.
I like the idea of the seller paying for the search. Thanks for that tip.
You're so clever Elena!

I hear ya, lemme in there! You're welcome, but it's just stuff I've learned on my journey, that I'm passing along. But hey it's better than gas right? LOL! JK!

most TITLE COMPANYS charge for 2 different searches: the first search should cost anywhere from $50-$75, and thats for what they call a PRESENT OWNER SEARCH, when they do the search they don't go as far back in history, they just go as far as the current owner. The second, is the traditional TITLE SEARCH which usually goes as far back as property exists(could be 100-200 years), usually the FULL TITLE SEARCH ranges anywhere from $150-$200, YOUR HERO, SULLY.

hey, you mensioned in your original post that you didn't put down ANY EARNEST MONEY out of pocket, ssooo, how did you "LOCK UP" the property then?, i mean, if you haven't given the seller a deposit on the property, than that property is still "up for grabs", right?, i really didn't think that signing a agreement to purchase was enough, to "LOCK IN A PROPERTY", SULLY.

Did I say that? On my duplex, I put $500 earnest deposit. The next home I found I was planning on moving into, so I put a bigger deposit down because I had made money from the sale of the duplex, and I wanted to get the keys from the owner before closing. I was still learning about investing and really didn't know what I was doing yet. But since then I've learned you can lock up any deal with as little as $50.

Hi Im looking into assigning and its taking me a little while to understand everything but these forums really help. Im just curious what have you been most successful with as to assigning? pre-foreclosures, REO's, FSBO's? Thank you in advance for any advice.
p.s. i love your charisma!

Kristy