Making first wholesale offer

Here are a couple of things to consider. First, when offering through an agent on MLS listed properties:

1. A contract is either assignable or it is not. Plain and simple. Read the contract! Putting "and or assigns" after your name on a non-assignable contract wont make it assignable. It can be a red flag and it shows your exit strategy. The seller and their agent will know that you are putting the property under contract and then searching for a buyer.

2. I don't know where you are since there is no info in your Bio. So with that said most areas are experiencing decreasing inventory and high demand. So you need to make strong offers. A bunch of contingencies can be a fed flag to the seller and their agent resulting in no excepted offers. Use only the inspection contingency is my advise. Finance contingency won't work on a cash offer, right?

3. I assume you will be making cash offers right. So the seller and their agent make think it a little strange that you have the cash to buy but none for earnest. Earnest due at the end of inspection is about as far as I would press it. EM at closing is the same as no earnest at all. In this market, don't go there is my advise. Other buyers are making offers and paying the full earnest amount within 48 hours of acceptance of their offer. Why would they accept your offer instead. There is a ton of competition out there!! Make intelligent offers.

4. Build your buyers list FIRST so that you can make a strong offer and use their money. That solves the contingency issue and the earnest issue. Have a strong buyers list and offer on what your buyers want! THIS IS KEY TO BEING A SUCCESSFUL WHOLESALER!!

When offering directly to a motivated seller using your own contract, you can put whatever you want in the contract. Example: $5.00 earnest and a 30 day inspection period. Have a line that states this contract is assignable. Have an attorney check the contract you use to go directly with the seller.

Hope that helps and remember this is just my opinion!

Michael

I have accumulated 6 cash buyers and, ironically, 6 offers from my agent. Do I sit down and explain to my agent that I want to have him go in and offer a 60-85% ARV offer on all these properties on my behalf and then have him use the assignment contract with EM clause and 30-60 day time frame? He has been in the biz here in SoCal for 30 years and has done over 100 investment deals over the last 5 years. He seems pretty aware of how things work. He has provided an ocean of info on the 6 properties but now I don't know what to do next. I tried to sign up for success academy but am not getting any calls back. Please help in any way you can.