You might have heard about wholesaling real estate, but you have no clue what it is or how to do it.
Congratulations-you have come to the right place! What is wholesaling real estate?
To different people, it means different things. In its simplest form, wholesaling is putting a property under contract, and selling the contract to purchase the property for a fee. You can accomplish this by assigning the contract to a third party, or
“Remember, wholesaling is all about making money, and the only way to keep making money is to make sure you have good rehab numbers and clean contracts. “
In an assignment scenario, you receive a fee from your end buyer for the contract, and you are immediately off the hook for performing once the Seller is notified of your assignment to a third party. Your fee for this can be whatever you choose, so long as the numbers make sense to the investor. In a double close, you will incur some additional costs for recording and legal fees, but it will protect your total profit from the Seller until the deed is recorded. We generally double close high-value wholesale contracts, because there is nothing worse than an angry Seller at the closing table holding on to your deed when they see what you are making. Let’s walk through the basic steps of each kind of wholesaling:
Step 1: Find a property
Step 2: Meet with the potential seller to discuss their goals
Step 3: After the meeting, look at your rehab costs and soft costs to determine the right offer price. If you don’t have a good handle on rehab costs, call a licensed contractor like Stephen at 857-251-4047 for an accurate estimate on rehab.
Step 4: Complete your offer, in proper form, and have it reviewed by an attorney (preferably me) to make sure all the terms and conditions you want are outlined clearly.
Step 5: Once the offer is accepted, shop around for your end buy investor. If you have a true deal, the investors will come running!
Step 6: Complete your assignment of the contract agreement and send to an investor for signature.
Step 7: Send investor info to Seller with the executed assignment.
Step 8: Collect a check at closing!
Steps 1-5 as above
Step 6: Contact me at JCW Title LLC to get started on your title work.
Step 7: We will run title, order Municipal Lien Certificate, plot plan, and order payoffs and adjust for taxes and water/sewer fees.
Step 8: Once we are clear to close, head to the closing table!
Step 9: Sign a few documents, and we record the deed from Seller to you.
Step 10: Immediately after recording the deed from Seller, we sign a new deed and a few documents for the end investor and record that deed.
Step 11: Collect your check upon closing!$$
Remember, wholesaling is all about making money, and the only way to keep making money is to make sure you have good rehab numbers and clean contracts.
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