General Wholesaling Questions
I have read several posts on wholesaling. But before I try out the methods I would just like some clarification to ensure I am on track.
My first task is to find a property for sale-
Question: What types of property should I look for and how do I avoid dealing with realtors.
Next I negotiate a price with the seller lower than the obvious value of house.( selling for $150k, valued at $210k) Question; If a down payment is needed does that come from the investor?
Next , I would then sign a purchase agreement, adding "and/or assigns'" after my name.
Question: How much earnest money is necessary? and how do I keep from losing my earnest money if deal does not close?
Next I would immeadiately contact my list of investors and offer to assign the property for ...say $160k or less- my fee would be the difference between the two, ($10,000) correct?
The fee is paid to me from closing and the investor is now assigned my position on property.
I hope I did'nt ask too many "questions", but I want to be professional in all my dealings so this info will help me to understand my role in the wholesaling process. Thanks
You have the concept down pat. The only thing is you shouldnt avoid the realtors, you should have them working for you. I use realtors all the time. I tell them what I am doing, and they give me a list of properties that fit or are really close to my criteria. Some of them even will lower there fee to get it down to the right price. The only thing is I have to be able to buy them immediately with very little work from them. The good realtors have incorporated us into there business model. Also you will need one just to get the expired MLS lists. And dont forget to find out what your investors are buying before you go shopping to avoid being stuck with the property. Make sure your deposits are fully refundable contingent upon financing. If you dont get financing then you get your money back.
Good Luck,
Kyle
Thanks kyle for the support and words of encouragement. I am going to take your advice on working with realtors, it makes perfect sense. I am going to begin compiling a list of investors for various properties I may come across, I don't want to come across a gem and not have an investor for it ! I noticed you were from FL, so am I. How did you locate real investors and do you also have hard money lenders lined up just in case of funding issues or if there was a property too sweet to pass on.
Thanks again, your advice will help me move one step closer to reaching my goals of real estate investing! :-D