How to Wholesale a House
In the early to mid 2000s a fortune was made wholesaling houses. We were very new to the real estate game and did 1 to 3 houses a month and earned fees anywhere from $5,000 to $14,000 per house. It was a fantastic way to make money in the real estate business. It was easy because there was so many investors in the business until the bubble burst.
The vehicle for making bucoo bucks didn’t go away. It’s still a viable way to make a lot of money, FAST! But, you have to know what you’re doing.First, you must understand that you can do this business with little to NO Money. Second, you don’t have to buy the house to wholesale it. You simply have to put it under contract and then assign your contract to a new buyer (CASH INVESTOR). When you put the house under contract, A Key point is that you have to use a “buyer friendly” contract that you can get out of if you are not able to find a buyer. If you need a “buyer friendly” contract, I will be happy to send you one email [email protected]
The vehicle for making bucoo bucks didn’t go away. It’s still a viable way to make a lot of money, FAST! But, you have to know what you’re doing.First, you must understand that you can do this business with little to NO Money. Second, you don’t have to buy the house to wholesale it. You simply have to put it under contract and then assign your contract to a new buyer (CASH INVESTOR). When you put the house under contract, A Key point is that you have to use a “buyer friendly” contract that you can get out of if you are not able to find a buyer. If you need a “buyer friendly” contract, I will be happy to send you one email [email protected]
I Have 6 steps that I have learned to make this process simple (Anyone can do this)
Step #1
Deal with the homeowner directly.
Working with a real estate agent and you do not close it could be a big headache if you do not close the deal. Real estate agents will always insists on using their forms which protects their seller. However I still buy from realtors but you need to remember you will need the money to close because their contracts do not allow for a double closing or an assignment in most of the cases.
Step #2 - IMPORTANT STEP in the wholesale process
Knowing value of the property that you are putting under contract.
You have to know that there is equity in the house for the buyer that you assign the contract to. Most people use a real estate agent or the property appraiser in your city or town. I personally use Real Quest Reports which offers me instant, comparable sales in most parts of the country.
Step #3
Build your CASH BUYERS list!
Here is the truth, you may find a lot of wholesale deals, but what is the purpose if you don't have the cash buyer to assign the property too. There are numerouse ways to find Cash Buyers.
My favorite way is post ads, Craigslist, Backpage and other sites where people are looking for homes and have people call me direct. You can also use Bandit signs, but one thing you must know about this method is that they could be forbidden in your town or city.
A lot of people use Bandit Phones to find retail buyers & rehab buyers. As you know or may not know retail buyers need to borrow the money from some lender which takes a lot of time, you will need to close sooner. To avoid this massive headache you should sell to CASH BUYERS that is in business of selling and fixing whole sale deals.Finding these buyers is simple, you can find them in ads in your local paper, internet, Social Media pages, local real estate meetings or by going to a real estate auction to introduce yourself to real cash buyers. Honestly this is best way to find out who are the majors players in the game in your area.
Step #4
Find some wholesale deals!
There are many ways to find wholesale deals. The KEY FACTOR is that you need to have a system in order to find properties that are deeply below market value on a regular basis and then select the deals that is the best opportunity for you.
Great ways to find whole sale deals...
- Real Estate Agents
- Mortgage Foreclosures
- TV Advertising
- Social Media
- Abandoned Properties
- Tax Sales
- Building code violations
- City inspectors
- For Sale By owner (Contacting the owner directly)
- Internet, Website traffic
- Buy Leads
This is just a few ways to find properties that I currently are using.
Step #5
Write the wholesale Purchase contract!
I always try to push the closing as far out as I can to give myself the chance to find the CASH BUYER. You must meet the needs of the Seller and they have to believe that you can solve their situation, which is the only way you can get the property under contract. Being successful in this process is about your sales skills.
Step #6
Market the wholesale property and the assign the contract to your CASH BUYER!
In our first year 2003, we did over 15 houses this way and you do not need a real estate License or a college degree play this real estate game; however it does take some basic knowledge and basic common sense to do this business.
Jai Thompson
Sr. Investor * Wholesaler
BIG WHOLESALE DEALS (Nationwide)
Project Development Ltd
O: (702) 996-6435
C: (702) 506-4504
F: (702) 608-8566
[email protected]
Step #1
Deal with the homeowner directly.
Working with a real estate agent and you do not close it could be a big headache if you do not close the deal. Real estate agents will always insists on using their forms which protects their seller. However I still buy from realtors but you need to remember you will need the money to close because their contracts do not allow for a double closing or an assignment in most of the cases.
Step #2 - IMPORTANT STEP in the wholesale process
Knowing value of the property that you are putting under contract.
You have to know that there is equity in the house for the buyer that you assign the contract to. Most people use a real estate agent or the property appraiser in your city or town. I personally use Real Quest Reports which offers me instant, comparable sales in most parts of the country.
Step #3
Build your CASH BUYERS list!
Here is the truth, you may find a lot of wholesale deals, but what is the purpose if you don't have the cash buyer to assign the property too. There are numerouse ways to find Cash Buyers.
My favorite way is post ads, Craigslist, Backpage and other sites where people are looking for homes and have people call me direct. You can also use Bandit signs, but one thing you must know about this method is that they could be forbidden in your town or city.
A lot of people use Bandit Phones to find retail buyers & rehab buyers. As you know or may not know retail buyers need to borrow the money from some lender which takes a lot of time, you will need to close sooner. To avoid this massive headache you should sell to CASH BUYERS that is in business of selling and fixing whole sale deals.Finding these buyers is simple, you can find them in ads in your local paper, internet, Social Media pages, local real estate meetings or by going to a real estate auction to introduce yourself to real cash buyers. Honestly this is best way to find out who are the majors players in the game in your area.
Step #4
Find some wholesale deals!
There are many ways to find wholesale deals. The KEY FACTOR is that you need to have a system in order to find properties that are deeply below market value on a regular basis and then select the deals that is the best opportunity for you.
Great ways to find whole sale deals...
- Real Estate Agents
- Mortgage Foreclosures
- TV Advertising
- Social Media
- Abandoned Properties
- Tax Sales
- Building code violations
- City inspectors
- For Sale By owner (Contacting the owner directly)
- Internet, Website traffic
- Buy Leads
This is just a few ways to find properties that I currently are using.
Step #5
Write the wholesale Purchase contract!
I always try to push the closing as far out as I can to give myself the chance to find the CASH BUYER. You must meet the needs of the Seller and they have to believe that you can solve their situation, which is the only way you can get the property under contract. Being successful in this process is about your sales skills.
Step #6
Market the wholesale property and the assign the contract to your CASH BUYER!
In our first year 2003, we did over 15 houses this way and you do not need a real estate License or a college degree play this real estate game; however it does take some basic knowledge and basic common sense to do this business.
Jai Thompson
Sr. Investor * Wholesaler
BIG WHOLESALE DEALS (Nationwide)
Project Development Ltd
O: (702) 996-6435
C: (702) 506-4504
F: (702) 608-8566
[email protected]