OfflineHey DG Family,
I've been having some issues with starting out wholesaling. I have all the basic knowledge about how the process works, but it is the little parts that concern me. For instance, once I locate and evaluate a property as a good deal and present an offer to the homeowner whats the next step? Of course this is assuming the offer is accepted. lol. Thanks in advance guys!!!
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Ok, once the deal is accepted, you would then have something of value, assuming that you have a sales price with a pretty good discount to the ARV.
You would then call the buyer on your buyers list who wants a property like the one you have tied up. You should call that buyer, ask if they are still in the market, and then describe the deal. Some wholesalers will approach all of their buyers and the first to make a commitment gets the deal. I would prefer to contact the buyer who is most likely to buy the deal and then give them an exclusive for a short period of time. That way if they don't want it you have plenty of time to introduce it to your other buyers in the order you choose based on their buying criteria and the deal you have.
If they like your numbers, you can take them to the property so they can see it. Remember the price you should tell them is a combination of the price you are paying plus your profit. Keep using that number. If the buyer wants the deal, then arrange to meet with the buyer to do the paperwork. You will then give them a copy of your Real Estate Purchase Contract and get them to sign the Assignment of Contract agreement. The buyer will then take your place as the buyer in your purchase contract and you will submit your assignment contract to escrow which gives them instructions to collect your assignment fee at closing.