Wholesaling Basics 101

It's not true. You're not representing the property as a Realtor, you are holding the contract and turning over your interest to another buyer for a fee, there's a difference. Hope this clarifies it.

Hey thats my saying! SUWEET
Hello Elena,
Thats funny i just posted that question or something like it, so i am having the homeowner or owner sign a "agreement to purchase" from deans documents now are you putting up the earnest money and down payment when you sign with the owner? Now the only paper that needs to be filled out between me and the buyer is the "Assignment of contract" in deans docs, now any leagal people in this process between me and the seller or between me and the assinee? sorry if this is confusing but i just need to know. and what about any issues on things like mold or on site septics failing or stuff like that.Looking forward to your response
Thaanks Jay C

You don't have to put up earnest money, your end buyer does that. You can negotiate the amount and when you pay it. It's ALL negotiable my friend, that's the beauty of investing. It doesn't hurt to ask, all they can say is 'no'. Legal people depend on your state, Arizona uses title companies, other states use lawyers. What works in your state?
Best o' luck! ;D

Hello Elena M,

I just read all of these posts since the first one, and I can say they have really helped me. We are a family who our new at this, we just got started.

Thanks for your encouragement and all of your time you put into these posts!

Gary, Jen & Noah...

Hi there,
Welcome to the DG family, we're so glad to have you with us. I am so honored that my posts have helped you and or encouraged you. It's my mission to help others as much as possible. I struggled for most of my life as a single mom, so I'm happy to share my knowledge, wisdom and experienc with others. You're blessed to have your family working with you. Mine has NO desire to work together and feel real estate is too complicated.... lol. Oh well, they like it when mom has made money though. ;D
Feel free to look around, read some of the other posts from all the other superstars, they've truly inspired me along my journey. Ask any questions you have, we're all about answering them and helping others along their journey.
God bless,

Elena,

Thank you for your encouraegment again...

We have been working on trying to do assignments...and I think we found a possible deal last night. The owner lost her Mother 3 months ago and is motivated in selling and closing. Homevestors contacted her and offered her an extremely low offer (50%)that she would not except. She told me she was insulted. We think we can possibly buy her house for 30% below FMV. The house needs minor repairs, mainly new carpet. We already put an ad on craigslist for the home looking for investors. The problem with us is we do not have many investors right now. But we think we can get some fast by doing the ad.

Do you have any advice what our next steps should be?
We will look at the house in a couple of days. And make the offer.
We would like to make it contigent on an approved inspection. And also have the buyer pay the earnset money, but were not too sure exactly how to do this.

Any help would be greatly appreciated....

Thanks,

Gary, Jen & Noah...

Also put contingent upon financing. Call all the we buy ads in the paper and smaller papers like pennysaver. Call for rent ads and ask the landlord if they're looking for anything. Did you also put an ad on backpage? You need to have a few buyers lined up. If you're able to attend an REI meeting go and find investors there. Use Dean's contracts they're great. Hope this helps, best of luck!!!

Hi Elena,
Your information is all very useful, don't stop giving to those of us out here in DG land, well I need it.
Thanks again

Elena, this is a great thread on assignments. When you first talk to your investors that go on your buyer's list what is your first conversation like? Is this after they respond to your ghost ad on Craigslist or backpage?

Also, you said you made $17,000 on one assignment. Wow!!!!! Do you ever get any negative reaction from your end buyer when they see how much you're making on the deal?

Deshone

We're interested in Wholesaling Properties with Assignments as well. Any one who wants to share insight or experiences we'd love to hear them.

Wishing you Happiness and Propserity

Rick & Peggy
Eagles Crest Properties

Let me see if I'm getting this assigning deal thing right..(Let me know if I'm not right! )

1. Build a buyer's list.
2. Search for deals based off of what your buyers want.
3. Lock up potential deals with sellers below market value with $50-$100 earnest money(Using the "Agreement to Purchase form").
4. Do a title search.
5. Find a buyer for your contract.
6. Assign the contract to the buyer/investor.
7. Get paid!

Right? So, how do I make sure that I will get paid? And that they won't just take my info and run with it?

thanks for all the info
regards
tom

Orelia wrote:

Let me see if I'm getting this assigning deal thing right..(Let me know if I'm not right! )

1. Build a buyer's list.
2. Search for deals based off of what your buyers want.
3. Lock up potential deals with sellers below market value with $50-$100 earnest money(Using the "Agreement to Purchase form").
4. Do a title search.
5. Find a buyer for your contract.
6. Assign the contract to the buyer/investor.
7. Get paid!

Right? So, how do I make sure that I will get paid? And that they won't just take my info and run with it?

Found my answer by reading this whole thread..thanks..

Hello Elena,

I know I am really late. I am a new investor and I had a few questions.
When assigning properties, is a Disclosure Statement necessary? Also you mention the escrow money being paid by the assignee, how is this done? Two more questions. You say to take the signed documents to my title company, what if the seller and assignee use their title company? And is a title company necessary? Thank you for your help in advance.

Everett

this thread is awesome, I've found so many answers to my questions just by reading this.

However, I think I might be mixing things up, I'd appreciate it if someone can help me out.

1)Are we mainly talking about cash buyer deals?
If not, how do you put an offer down on an FSBO when you will be assigning over to a buyer who needs to either finance it with the seller or get a loan?
[I'm assuming that you would have a cash buyers list and you would only market to them?]

2)If it is an REO deal, will you be dealing with the bank's real estate agent? Would you try to make a cash deal at a certain percentage lower than the FMV as you would for a FSBO or other type of seller?

This is very exciting, I never thought I'd be learning so much and wanting to apply it. I've always been scared of real estate, and intimidated by the idea of the typical schmoozing fast talking deal making persona of real estate investors. I think I watch too much TV!

Hi girls,

Thanks for sharing your knowledge, it great to get in on all the conversations.
I have taken on your verses, all encouraging stuff.

Have a wonderful weekend.

What is the difference betweeen Assignment deals and wholesaling ? I just finished reading your first post and to me it really just sounds like an assignment. Please someone explain to me the difference

Thank you!
-Gabriel Do Carmo

Hello Elena,
Thank you for clearing up on how to do a wholesale you all our awesome I read your post all the time.

This is a great thread. We are using some of the steps described here and in the information from folks like Carol Stinson and Greg Murphy.

Good stuff.

By the way, we met with an owner in a town 30 miles away, did a walk-through of two properties he wants to sell and are working on a proposal to put them in our "basket." It was challenging and exciting.

Alice and Jim
HomeStar2020.com

I read the question Sully asked about the earnest money deposit out of pocket to lock up a property... Will i need an earnest deposit out of my pocket to lock up a property or can i do without it?

I was reading these posts and i read that Sully asked "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?"

Well my question is, is Earnest Money Out of My Pocket a must or can the Earnest Money come out of the seller or buyer's pocket?

I'm brand new to the forum. I do not have great credit and wholesaling was where people suggest I start. So how do I start?

Welcome to DG.com. Have you read Dean's book? I would first suggest you start there to get an idea of how to wholesale. It's basically finding a good deal, locking up the contract and then assigning that contract to an end buyer for a nominal fee. You don't need credit OR cash to do it, you DO need to be a good bird dog and find those deals, or have good bird dogs bringing them to you. If you have bird dogs pay them well, there's a lot of investors out there! Hope this helps you, feel free to come here for help, suggestions, tips AND motivation.

I have read alot today. I am so inspired by all the help and carring that goes on with all of the DG Family even if your an old member or newby. We all can learn something new. GREAT JOB GUYS & Gals!

Thanks,
Bertha

Always love hearing from another DG family member! There's no other forum like ours and that's because Dean inspires us all.... Many blessings to you!

I need Help!
i HAVE DONE EVERYTHING i'M sUPPOSED TO HAVe DONE SO FAR.
i HAVE BUILT A GOOD CASH BUYERS LIST.
I have located about 250 great forclosure deals(reo's)
My only problem is locking up a deal to assign because every deal I present to my buyers, They have already seen. I've been told that they already have the mls being scoured on a daily basis. Then I've been told they are looking for good off market deals that are out there.
They say"they are out there you just need to look harder"
Besides realtors and mls, where else do I find deals to present?
Now my buyers are giving up on me because I haven't been able to give them anything.
At first, 2 or 3 were E-mailing me asking where are the deals? Now they don't even ask or E-mail me any more. They treat me like the boy who cried wolf.
I have also been working with a couple of FSBO's but I can't get them cheap enough to interest my buyers. I am getting very discouraged.
Even if I am able to find a deal? how am I supposed to lock it up with no money? Now I am hearing stuff about promisary notes or iou's for earnest money until you can get it from the buyer. I'm just getting more and more confused and discoueaged.
I am not a quitter, I just need tips on finding a deal and locking it up without having money. Is it REALLY even POSSIBLE?
I know for a fact that if I can get just one good deal locked up on contract, I can assign it.
Now I'm reading all about certain formulas to follow to assure the buyers will find it to be an attractive deal and that all makes good sense. So I know what I need to find I just need to know where to look and how to lock it up.
I guess if it were that easy, everyone would be doing it and it wouldn't be worth it , HUH???
SOMEONE PLEASE HELP!!

Have you read any of Dean's books? What *have* you done as far as educating yourself with this? You must be doing something wrong, I would suggest reading at least one of Dean's books, and then read it again. Then, search through all of this site. There is TONS of information here at your disposal, and for *free*.

I will try to help, but you may not like what you hear.
First of all, from reading a couple of your posts, you have not done enough study, reading and learning. You don't have a clue. Here are a few things I think you need to do or learn about.
1. REOs are not assignable 99% of the time. How can you get a REO under contract? You will need a POF letter and copy of your earnest money check to make an offer. If its accepted you usually have 48 hours to supply the actual earnest money, sometimes in certified funds. How can you overcome this bump in the road?
2. No buyer is going to buy a property from you that was listed on the MLS unless you have it under CONTRACT for a lot less that it was listed on the MLS for!
3. Learn how to control properties yourself, showing buyers properties that are listed and you do not have a contract on is a waste of time.
4. Realtors and the MLS are only one source, in fact, I only use them for REO offers. Dean's books go through multiple strategies on marketing to motivated unlisted sellers. Pre foreclosure, probate, absentee owners, tired landlords, expired listings, divorce, job loss, illness and need to move are only some of the areas you can research and market to.
5. Do you belong to a REI club and attend their meetings?
6. When dealing with a distressed home owner, you can lock up a deal with as little as $10. I just did a $10,000 assignment deal that I put down $100 as earnest money.
7. You state you have done everything you need to do but you are mistaken. You have not done the most difficult part of this business. Learning where and how to find a REAL deal. How to evaluate it, get it under contract and make a professional presentation to your buyers. Right know they don't want to talk to you because you have brought them nothing.
8. It is time to study, read, study, go to every REI meeting and event you can find, meet people actually doing business in your area, learn how to determine what a house will actually sell for today, what rehab costs are, how to get properties under contract, get out and make offers, follow up on your offers ETC ETC. You have not even scratched the surface of what you need to learn and do!!
9. Quit whining and take action. HELP YOURSELF!! No one can do this for you or show you the magic button (there is not one)You must get out there in the real world and learn this stuff. Sure you will make mistakes and say dumb things, we all have!! Take action and use everything as a learning experience and don't repeat your mistakes.
10. Never stop learning.

Michael Mangham
MD Home Acquisitions LLC

The key to this process is finding properties at very low prices and getting them under control. Then if the buyer is really, really interested in that particular property you have some leverage.

Another alternative is to find the real nuggets - homes that are not listed and have no for sale sign attached yet.

If you can gain control of these properties you have some bargaining power.

One more key - numbers - 25 or 30 possible acquisitions to make one or two deals.

Jim and Alice

hi i was wondering how does transfer tax work i talked to an attorney that told me i would have to pay the transfer tax and maybe twice in PA there very greedy. if thats true a 100k deal could institue 4k or 8k in fess there has to be someway around this anyone know? also for earnest money how do i get around giving moneis unless the deal goes through? and can i have the investor i pass the deal off to pay it? how do i word this in the contract?