Where Does My Job End as a Wholesaler?

It all depends on the type of buyers you have. The first set of buyers that are experienced and know the area where your wholesaling your deals would most likely have their contractors, funding, title company and attorneys in place. All you would have to do is put the deal together with the contracts and bring everything to your attorney, then pick up your check. Now the 2nd set of buyers would be investors like doctors, dentist, attorneys, surgeons and etc. These buyers know nothing about putting a deal together or getting contractors and looking for property managers but they want that good return on investment. Thats when you step in and put everything together for them and bring them the package deal, they will buy it from you because you will have banks, attorneys, contractors and property managers in place to make the deal happen for them. This is called super wholesaling. You can also hand these type of deals to out of state investors that don't know the area but would take the deal because you have everyone in place to make the deal happen for them.

Thanks for the explanation, but more clarification needed.

So, if I need to put together the package for the second scenario, should I increase my profit to those end buyers and do I include something regarding this into the contract with them. Or, am I just doing the extra work as a favor?

Next, I still don't understand how I go about getting funding for someone other than myself. Why would any lending institution let me apply for funding or another person? Or, an insurance company allow me to apply for insurance for someone other than myself? Am I misunderstanding this concept? Is it that I'm just suppose to provide the end buyer with contact information for the buyer to make their own contact with my contacts? Also, is it a good idea to give others my contacts?

Thanks.

Verna, This means you go above an beyond to give buyers all they need and then they will only want to work with you, because of all you bring to the table. You don't charge more necessarily. You don't have to do all the extra and I would venture to say most do not. By being a super wholesaler you are the prize find for a buyer!

I understand the benefits of being a "Super Wholesaler" now, but I still need to know how I would get those things done for another person. Can you or anyone explain the process of getting these things done for another person? Or again, am I simply suppose to give the buyer my contacts or do I just have my contacts get in touch with the end buyer? I'm still not clear on how this can be done.

Thanks

You will call around and find the right bank that would refinance a property for you in that area. You don't have to apply for no funding, maybe you will want to have a couple of hard money lenders just in case you buyer would need rehab funds but in most cases the buyer would have all the funding put in place. You will have interviewed a couple of contractors and passed alone the best one to your buyer. You will call around and find a good insurance company for you buyer. You will call around and interview different property managers to find the best one for your buyer. And so on with the realtor, attorney and title company. Basically your getting all the contacts and passing them along to your buyer so they would just say yes to the deal without hesitating. Now about asking for more money, I didn't here of Matt Larson saying anything about getting more money for super wholesaling. If your not a member of dean IE program I would advise you to join because there are a couple of long videos of Matt and Nate going over super wholesaling. Like Tammy mentioned you will do all this to stand out from all the other wholesalers.

Thanks for that explanation. It really answered my questions. I'm not actually giving up my personal contacts, but I would interview to try to get good people like realtors, contractors, banks, etc. and refer these people to the end buyer if he/she needs them. That makes more sense to me.

Okay, that's something I can include without much problem. But, on the down side what happens if someone I refer comes up short? I could see that destroying a relationship with my buyer.

Thanks so much.

If your worrying about that then thats why you interview these contacts and make sure you sort out the A players from the B players before you hand them over to your buyer.

Yes, that makes a lot of sense.

Thanks

Reynold has explained it very well. Its called " A scope of work " its when you run all the numbers, NO don't guess RUN the numbers with your contractor, realtor, local rent rates all your power team members DO your do diligence and take pics and make it so they cant say no...
If you do the job right, everything you bring to them they will buy...

Make your buyers happy, then they will pay you before close for your deals you bring them...

Aaron

Thanks Aaron. I don't just want to be an investor. I want to be the best investor I can be! I want a profitable business and I understand sometimes in business you have to above and beyond to keep them coming back. So, I'm game for this.

Thanks.

Now I'm honestly nowhere near being a super hero wholesaler but from getting my first deal I honestly woken up to what really matters especially when getting that first deal. With that first deal all you need to worry about is the basics basics basics.
1. Buyers, where, what, and how much they're willing to pay.
2. Title Company, one that knows assignments of contracts and double closing and has a closing officer/attorney than can do them. Ask your buyers when you find them what title company they use and they'll be glad to tell you.
3. Contracts, find a good purchase and sale agreement and a good assignment of contract. The ones on this site are good enough. Don't just take my word for it have an attorney or even the title company you find review them to be sure.
Practice reading them over so when you meet with a seller or buyer one on one you come across like you've done this 1,000 times.
4.Sellers, pick one or two MAIN sources of getting leads like bandit signs or yellow letters and stick to it with everything you got for 2-3 months or until it honestly isn't working then tweak and refine to something else.
5.EVALUATE, know how to evaluate a deal.
Just like 30Days to Cash. ARV x .85closing costs - profit - repairs - wholesale fee = MAXIMUM ALLOWABLE OFFER
6. OFFERS, once you get an offer accepted sign p&s agreement, contact buyers, one buyers wants it you have them sign assignment of contract and collect your up front deposit $500 at least so you know they're serious.
Then once and only ONCE you have both agreements signed THEN you send them to the title company so they can make sure they're is a clear title, no unpaid taxes mortgages or liens etc. make sure the title company has the seller contact info and the buyers contact info so they don't bug you for questions they can just ask them.
7. Collect your check. They will call you in if your not present for the closing with the buyer.

To at least grasp the most basic steps this is the way I've come to understand it even though it may seem simple and lazy were talking about getting that first deal here!!! Once you get that first deal making $7,500 then you have options to explode and crush it however you want with all the in between details to truly truly make this a big business.

Just my input though as I've always gotten frustrated by the way it was told to me. lol

Read 30 Days to Real Estate Cash OVER AND OVER.

One of the simplest ways to know if you have a real buyer you're talking to ask them which Title Company they use no matter what, its a win win because if they cant even tell you what Title Company they use the most... come on. haha.

I agree with Adam & Aaron & Reynold & Tammy too & anyone else I missed. Verna I think that you are overthinking this too much, like Adam said, basics. You will learn as you go along don't worry about it you don't need to know or mentally understand everything right now.

the main thing as you know is getting buyers, do you have 20 buyers on your list? if not go get them, you know what to to do, go to REIA club meetings, meet them there, just say you find deals & ask them what they want/where, what price. PUt up ghost ads, call google ads that say we buy houses, you will have 20 buyers in no time.

Then start making offers, get an agent to start making offers for you, or just call zillow listings that have the selling price below the zestimate somewhat, their name the agents is at the bottom of the screen, just call them & make offers, make offers every day, that should be our goal, mine is 10 a day now. put up bandit signs, flyers, drive/walk neighborhoods to look for vacant/ugly homes, write down the addresses look them up- the owners(leave a flyer/card on the door too) then make an offer etc.

and repeat, call craigslist ads, call for rent ads every day & yiou will have a deal soon for your buyers. Congrats on taking action!

Thanks for all the advice and encouragement. Tony you are right I may be over thinking. By nature I am a very organized and analytical person and I always need to have all my ducks in a row. I know I can't predict how every situation may be during the deal process, but I need to know as much as possible so I know how to respond in a way that will not send my deal down the drain or making a mistake that will put me in a financial bind.

Believe me I have got all the things that were suggested in line and ready to go. Right now I'm trying to get some administrative actions completed that will allow me to do business separate from my personal stuff like getting another phone for business only and setting up my LLC. Just waiting to get those things so I can send out my buyer and seller letters and put my ads up with my new business number and name.

Sounds like you are setting up shop and when its right then you open the doors.. I think this is a good idea!!
When we started with Dean I took off going in so many directions because I just wanted a deal so bad...Yes did a few deals BUT it wasn't a business like I dreamed it would be..
I didn't think things through and set up properly and im lucky it all worked out.. Example, write non refundable in your contract when you receive money upfront just in case they say they don't remember....

I like attorneys instead of title companies because they cover your ass and yes they will do all that titles do.

All the best

Aaron

Thanks Aaron. All this is really a lot to take in. I've got the wholesaling concept down pretty good, but I'm still trying to get a handle on the formula for MOA and how to determine just how much my wholesale fee will be.

I can't perform well if I'm unorganized or don't have a complete understanding of what I am doing. I've never been a person who just jumps in feet first. When I jump I want to be sure I know how to land on my feet!

I'm just about where I need to be. I'm hoping to jump in very soon and looking to make my first deal by the end of September. If I don't make it it won't be for lack of trying!!

Honestly if you have buyers that need you to find them funding you really do not need to work with them. There are tons of cash buyers in the market. Yes in truth of course you want to assist every one, but that is not the business of wholesaling and you can not assist everyone. If you are finding financing for someone else to do rehabs you should just be using that funding yourself to get into rehabs when ready. Keep going to your networking events and finding the right buyers and then search for properties they need. If you come in contact with private money and have a buyer that needs it then great but do not go and find funding for a buyer.

Thanks. You said what I was actually thinking in the back of my mind! Especially since it is my intention to work with cash buyers!