What types of properties can Wholesaling techinques be used on?

If you are reading PFRERN as what you said, it's all in that book. Blessing to all. LA

You will no doubt learn you cannot in most cases, assign a bank owned or short sale property. You can however, use a double closing and transactional funding to close on the property and then sell the property to an investor of your choice. You may wish to use an LLc to do the deal and sell the LLc to the investor right after closing. Note: make sure you do not have a bunch of other properties in the LLc because you will have to move them before you sell it. (Makes sense)

Good luck

RichF

jag004,

First of all welcome to the DG family! It is great to see that you have taken the first step in changing your financial future through real estate. BRAVO!!!!

What type of properties can you use the NO money down technique on?

Foreclosures
Short Sales
Estate Sales
Divorce sales
Bankruptcy
Vacant properties
Just about any property!

Keep reading the book as Tracy said "it's all in that book"..

Keep us posted!

Thank you for helping me with my question. U guys are absolutely right. Im going to need to read PFRERN straight through 4 or 5 times, and use it as reference hundreds of times. Even thought its explained clear as could be in black n white, sometimes I need another persons assurance to make sure im not overly-confusing myself. Thanks.

One of the keys to wholesaling is having a good buyer's list. This is a list of people that you know will buy properties and you know what their criteria are.

The question is not so much what types of properties can be wholesaled, but how good the deal is. If you buy the property right with enough margin in the deal to be attractive to a buyer or investor then you can wholesale the property.

Previous comments are correct. For REO's & short sales, these can be handled with a double closing (if your state allows this) and/or transactional funding. The transactional funding source may be able to provide you with a proof of funds letter that you will need for these types of properties.

Keep after it. You'll get there.

Rick

Hi Carol, i'm not Tracy (Brian Tracy), LOL. I'm Loveme.

1) Does the end buyer that u assign the contract to need to be a cash buyer? Investors are probably cash buyers, correct? But what if ur selling to a Regular Joe who needs a loan or mortgage for themselves? Will it still run as smooth?

2) Does the end buyer get mad when they find out how much money u have made assigning the contract?

3) When building a buyers list, how will I know if these buyers are legit and serious? Will i come across fakes, who are just blowing smoke?

Thanks I actually wrote this down in my note pad Cause I maybe doing A few of these here soon.

1. It depends if the Joe can get a conventional loan or not. You need to get a pre-approval letter from this Joe issued to him by the lender and an Earnest Money deposite.

2. In some cases, yes, some wouldn't even care. Even the seller might get mad as well. That's why in every killer deal that you got and you put a profit of like 10k to 20k, you might consider using a transactional funding to maintain secrecy as far as the transaction is concerned.

3. You will never know if they are serious or not. You need to get a Certified Check as an Earnest money Deposit to make sure they are serious in the transaction.

Hope this helps. Blessings to all. LA

The only time you will do a double closing will be when you use transactional funding. Otherwise you will only need one closing. REOs and Short Sales cannot usually be done with an/or assigns contract. You need to close and then sell the property to the investor.

As far as question number 2, I always practice full disclosure. If fact some title companies will not do a double close unless all numbers have been disclosed to all parties involved.
I tell the seller up front that I do this to make money and I will be selling for a profit. I make sure they understand that and are happy with the purchase amount they agreed on. I tell them I could be making up to $20,000 if I turn it over to one of my buyers and I WILL make more than that if I do the fix/flip myself. They can always do this themselves if they want! List it and get more money etc, but I am here right now with cash.
My buyers could care less what I make if they are getting the property at 70% of a quick sell ARV after repair costs. If its a great deal and I make $50,000 they do not care! I tell them up front what I paid and that I have a line of buyers waiting for the deal if they don't want it. (confidence and professional presentation!)
The trick to doing this is having a REAL DEAL!!

Check out my Transactional funds guy at my website listed below. I use his stuff daily!!

Michael Mangham
MD Home Acquisitions LLC

Nice little one pager. Big things come in small packages. Also, like the way you've locked in your domain. Very educational as well. Sorry, not trying to hijack this thread. But like you Jag, sometimes you grasp concepts when you read the second time round. Also visit these sites on the above comments. There are a great deal of experience and wisdom in this DG family. Welcome Aboard!
Have a Happy New Year and Blessings to You and all those Dear to you.

As far as question #1. Assigning a contract to the average Joe is rare(not impossible)and in my opinion not a strategy to build a consistent business on. On top of that it takes a while For Joe to get financed and when you assign a contract your time frame is usually pretty tight before you close.
Now getting a distressed property and fixing it and selling it to an average Joe is a great strategy! However, that is not an assignment strategy.

Michael Mangham
MD Home Acquisitions LLC