Wholesaling Basics 101

Eric,

To answer these, "whatever" could be just that. You may specify in the contract that the seller come to closing wearing a too-too. If he doesn
't, it gets you out of the deal. This is a oversimplified (and rediculus) clause but you get the idea. I use clauses acceptance is subject to "buyers inspection, and also my time limit is 45 days. That should give you enough time to find a buyer from your buyers list. Of course all of these clauses are subject to whatever you and the seller agree on.

Hope this helps.

Love the comments and insight here on this thread of postings.
The one thing that I would add from experience in "today's market" would be to have your main focus of time allocation time spent for locating buyers, and locating sellers. Due to the high number of foreclosures all over the country, due to the high volume of inventory with banks, as well as high average Day's On Market in most areas, finding deals is not nearly as hard as it was 6 to 7 years ago. I get the opportunity to travel all over the country teaching real estate to students spanning from Alaska, to Puerto Rico, and everywhere in between. To date, I've yet to go to a city where we weren't able to find good deals that were either "good, or great" deals withing 24 hours including time to find a new real estate agent. Its amazing! Finding deals is important, but not nearly as important as finding, and qualifying buyers, buyers, buyers!!!! Because finding properties and deals is easier than it has been in years, we don't to be frustrated in finding a great deal, then try to find a buyer, start to run up against the time frame of our inspection period, only to have to get out of the contract because we didn't find a buyer in time. That is the most frustrating scenario that I could imagine. Instead, find and qualify a buyer so that we are crystal clear as to the type of property that the buyer is looking for, then get out and specifically search for properties that fit the criteria of the buyers that we have found, knowing that as soon as we get a property under contract, we know exactly who and where the deal is going to go to.
I preach efficiency everyday that I teach!
Make "more" money through efficiency,,,,,, not by trying to find the next best thing.

Happy Investing.

Matt W.

When I lock up the deal, is it mandatory to ask/request the seller to notarize the contract document or will they do that with the end buyer?

As long as you have a signature on the agreement, then you should be fine. But, it is always good to consult a closing attorney to make sure you are following the laws of YOUR state.

Thank you Saroberts69...

Hi. My name is Francis and I'm here in Boston, MA. without a good online real estate law website.

Lawyers all sound the same to me and someone elses opinion from this site would be fine with me.

I like to think that if I know some law on my own, then I would be better
prepared for the up and coming deals that will require it.

Any suggestions would be very helpful too me.

I'm new to this, but getting better.

Thank you DGFamily.

Well almost I get the concept explained above and in Deans book Profit from Real Estate now, however I just got his 30 day to real estate cash and see that I will fully understand when I'm done. He suggested to go on here and post to the forums and since one of my goals is to do everything Dean says to do in that book lol, I'm doing it. My name is Chanel and my Hubby is one of the 75% of americans who hates their job. I stay at home with our son and I love my job but it brings in no income and we live with My hubby's parents helping them while we stay. My hubby wants to do this as well but since I have a lot more time then he has I'm learning as much as I can and get in some deals to alleviate the stress my hubby has with working 60+ hrs a week. I want to defenitly start with wholesaling to get my feet wet and help with other things that have to get in order to help with other opportunities in Real Estate. I hopeing to find some friends, mentors, anything postive on this site. I have been on for a couple months but this my 1st post in forum so yeah lets get started!!!

Hello
I'm 2 days new to this real estate thing and keep hearing about contracts. Is there a place to go to find these contracts or do I make my own?

thanks
Kim

Hi Elena,

Sorry for just barging in and introducing myself. My name is Smitha. I am a newbie in Real Estate. I have attended Dean's seminar and training but I haven't been able to get much help from those trainings. I have spent around 10 k for the one - one sessions and real estate academy training. I am still looking for the answer to the below question.

Where can we find properties for a 60 %-70% discount. I am not looking to make any money in Real Estate at this point of time. I am trying to make up for my loss by buying a home for myself at a discount. Any help would be greatly appreciated.

I am living in New Jersey and I am looking for a 3 bed 3 (or 2 and half) bath property which is ready to move in.

Thanks,
Smitha

Best advise I can give is read your eyeballs out and soak up this site like a spoung. Francis, professional legal advice is allways a smart thing. If you understand contracts it's not allways neccessary. Nelly6502, wholsaling is the safest form of REI. I've done alot without spending too much money ($35). Keep at it. Read my journal for links and ideas. Kim, all contracts are found on the left under forms and docs. Smitha, properties are all over the place. You'll find 89 ways (on this site) to find them. Just do a search under Dean's chin.

Congrats to all, I'll save you a seat at the top.

thanks Elena for your contribution. Yea I thought the person I assign the contract to has to pay my realtors commission, so my realtor doesnt care if I assign it to someone else he is going to get paid anyways. Is that correct?

Hi All,

Thank you for all your contributions and input. The advice is priceless. I am also on day two (this is post #2) and absorbing as much of this as I can. I have acted on the homework assignments in Dean's book. I am waiting for word back from RE agents with the requested info. Monday will be a follow up day. Tuesday is day 5. Hope to have my info in place to move to the next stage. Goal date for first deal is October 13, 2012. Interested in finding a mentor that might work with me here and there to keep me motivated to get that done. I am very busy with many other things in my other business as it is expanding also. Trying to stay focused on what matters. Ok. That's all for now. Everyone have a great weekend!

I also understand that REOs are generally non-assignable, but I've heard of some possibilities of how to get around that are double-closing or selling the LLC that the property is held in. I have also recently heard of a holding requirement of 90 days here in Virginia for properties, although I haven't looked into all the details yet. I went to some of Dean's seminars some time ago, and got my real estate license earlier this year, so I'm trying to get back into the investment side of things!

O.K. I have read through 3/4 of Deans Profit in real estate have 2 buyers 4 realtor only 2 mean something and have gotten a title account and a foreclosure website to track a pf and fr I have looked at maybe 100 or so properties and found properties with equity in preforclosure and without equity I have run some of the number(comps) have not called on any what should I be looking for and what should be my next step.

I am concerned with 2012 (TREC)-Texas Real Estate Commission-that states ……

BOTH real estate BROKERS and SALESPERSONS must be licensed by TREC in order to conduct property sales within the State of Texas…..Then under Information for Brokers and Salespersons Regarding Use of Unlicensed Assistants in Real Estate Transactions State…….

Preliminarily, the real estate brokerage activities must be "for another" person or entity. Ok!

This means that persons who are buying, selling or leasing their own property do not need a license; they are acting for themselves and not for another person. The activities must also be for a fee or something of value, or with the intention of collecting a fee or something of value… Ok I like !!!

This means, for example, that an unlicensed person whose neighbor has been transferred out of state may solicit tenants and negotiate a lease on behalf of the neighbor so long as the person does not receive or expect to receive anything of value for helping. ….This totally contradicts the previse Statement….

Now what is this super gray area !!!!

________________________________________

I would like to start writing contract’s to purchase, and then assigning these contract’s and collecting assignment fee’s….Really I am just assigning paper. So would this be correct for the State TX.

Any help would greatly be appreciated Sincerely CR

Elena,
The GURUs I listen to would rather deal with Realtors than FSBOs; the reason, Realtors (and I'm NOT one) are professional/professionals and FSBOs are too CHEAP! (and usually don't want to budge on the price)

Matt, I know this is an old post however, it is still very helpful to many investors, old & new AND it STILL APPLIES. THANK YOU.

hi
but don't any buyer or wholsaler, need proof of funds letter to be able to sign contract??
would you let me know if it needs proof of funds letter
thank you

Wholesaling is the key!
Very very true!
This forum that Dean created is one of the neatest things I have ever seen. Imagine a legal way to allow students with a same goal, direction, and level of motivation to communicate with each other to pick each other up, help each other along, give helpful tips and tricks, and to ultimately pick our economy right back up where it needs to be for all of us.

When looking to wholesale a property, in today's economy, it is so much more effective, and efficient to have our number one priority to be finding and qualifying our buyers. If we are looking for properties with a particular investor in mind, we can always know that when we get a property tied up, we know exactly what we need to with the property to make cash QUICK!

If our number one priority is Buyers,,,,,, we'll all make money QUICKER!

As a Real Estate Investor, our number one priority needs to be buyers buyers buyers. Keep that the focus and money will be there waiting for you when you find a deal.

To me, nothing is quite as frustrating then getting a property under contract, only to have to let it go because we didn't have a buyer for the deal, or an exit strategy in mind.

Such an amazing asset that dean gives us access to. Everyone that participates in this site always teaches me. Even as a coach for Dean, I learn things every time I come in and read what you all have to say. We are all potential team mates in this program, and not competitors. Thanks so much for all of your input.

Happy Investing.

Matt W.

i need some help asap i live in calif got a deal locked up under contract 14 day inspection period contingincies, my realtor says i wont lose my 1000.00 earnst money after the 14 days if i havent found a buyer can anyone help on this?

Yes, correct. At the end of your inspection contingency if you haven't found a buyer you sign a paper with your agent stating you're terminating the contract. You have to be sure to sign it, and on time. Even one day past and you'll be in default and lose that $1,000.

-Tom

read this.....and DEANS "30 DAYS TO REAL ESTATE CASH" AND "BE A REAL ESTATE MILLIONAIRE" there you have it..
WALT

Hi Everyone! I must thank everyone for their contributions. This forum is great!!

I am reading 30 Days to Real Estate Cash, and I was hoping someone can give me a little more insight into the following:
- We are supposed to get a list of Cash buyers of Real Estate within the last 990 days, either from a Realtor, or from the County Assessor's office. I am still working on talking to a realtor who can help with this (left messages, but no response back yet). My question is: Has this worked for anyone reading this, and can you please let me know any advice or tips in getting this information.
- My 2nd question is: How do I get this information from the County?

The book is also saying that we should get the addresses of properties that were bought by the Cash buyers - this also I am not sure how to get from the County.

Thanks in advance for your help.

You get this list of 90 days cash sold list from your realtor which lists the props they bought. that list will also tell you they buyers names, either personal names or more likely company names they own. group together buyers from the list that purchase multiple props & put their names in google & locate their ph# & call them to add them as buyers.

Some of them are hard to find so you can use spokeo about $28. a yr it helps further to locate buyers ph's, if you still cant' locate some of them & you will have trouble with some, you will have to mail them a letter, checking at the county website tax division for their mailing address with the address of the property they just bought, the clerk can you help you with that.

That's it. Oh I almost forgot in asking for the 90 day's cash sold list fr your agent, ask them first to tell you the hottest areas to invest in, to fix n flip & to buy n hold(since you want both of those types of buyers) to pick the zip codes a couple of them that are having the most transactions, to look up say 4 zip codes for that & tell you or send you a line item report on that ok. then run the cash sold list for those areas tell her, the one's that are the hottest, & keep reading the 30 days book ok.

CaliTony - That is totally on-point! That's exactly the detail I was looking for. I feel empowered to complete the Day 1 to Day 5 work. I'll post when I get it done. Thanks!!

I wanted to let everyone know about a couple of experiences, as it may help you make some decisions on what to do to build your buyers list.

1. I got the list of properties that were bought with Cash from my Real Estate agent. I located the owners' addresses through the county website. I then found the letter to Cash buyers from Dean's website, and sent out letters to every one of them - about 46 letters. Unfortunately I did not get a single response. It actually didn't bother me the least, because there are so many ways to build a buyers list.

2. I started placing ads in Craigslist. I've renewed the ad twice; so that's a total of 3 times my ad has been on the first page of the Search results. Everytime it is there, I get anywhere from 2 to 5 inquiries on my ad. From this ad, I now have 6 buyers on my list.

I plan to place more ads, and also attend Real Estate Investment club meetings to really ramp up the numbers on my buyers list.

Hopefully that may help someone.

Fixer under contract ready to assign:
6260 Primrose Dr La Mesa 91942 (San Diego California);
4/2 including 2-car garage conversion;
1786 sq. ft.;
ARV 540k;
Contract price 400k;
Repairs 21k;
Assignment fee to DG members 12k.
Will pay agent to bring cash buyer who closes.
Thanks!
webuyhousespaul@****

Munishvarma, thanks for sharing your experience on Craigslist. Definitely helpful and good reminder that we have multiple ways of filling our buyer bucket!

what do you think about reo,s and hud homes for wholesailing i do want to get started