OfflineOk folks, now that you have the right mindset it's time to step out and take real action!
Note: Wholesaling can be done with NO credit and NO cash out of your pocket.
Here's the basics of wholesaling:
Find a motivated seller and negotiate a sales price around 40 to 75% of the after repair value (the value of the house if it were in good or live in condition). Of course, the lower the better. Put the house under contract (put your name and/or assigns) with as long an inspection period as you can negotiate. (45 days or more, the longer the better, you need time to market it.)
Take the price that you agreed upon and mark it up anywhere from $1,000 up, depending on homework you've done to get the appraised value of the home, comps in the area, etc.
Market the property to your list of buyers. You should constantly be building a database of them until you have a few hundred or more.
Then once you find your buyer, you assign the purchase contract to them. Then you do an assignment contract with your buyer for your 'fee'. You pay no money out of pocket. (The buyer pays the earnest deposit and any down payments.)
Take both contracts to your title company and they will call you when your check is ready. At this point you're out of it now (till closing.) Make sure you tell them to contact the seller and buyer directly and provide their information.
Summary: You're simply the connector between buyer and seller and getting paid an assignment fee for doing so.
The more you do, the more money you'll make... SUWEET!
Are you ready to try it?
Elena
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
When doing an Assignment of Contract, you would come up with an offer like anyother time, the commission that is paid to the realtor is paid by the seller. When you Assign the contract to an end buyer, you are assigning under the original terms of the contract. Your part, the finders fee, it completely seperate and paid at closing.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Elena,
I can't thank you enough for all your help. Just reading this forum is quite an education! I really appreciate you and your willingness to help.
I hope that someday I can give back to you even a portion of what you have given to us.
_______________________________________________________
Michael B
No thanks are necessary, I'm just happy to help any way I can. I know how confusing all this stuff is and overwhelming in the beginning. But one day it'll all click and you'll get it. Doing a deal or two will definitely help... LOL! That's a very sweet jesture of giving back to me, but the LORD supplies all my needs, your friendship is enough thanks for me.
God bless you,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Wib wrote:
3) No realtor for an assignment? Just 2 contracts and a title company? No mortgage company?
then Elena wrote
3) Right, no realtor, no mortgage, two contracts the purchase agreement and the assignment contract. By jove I think you've got it!
So my question is, do you need to contact a title company, and if so, what do they have to do with the reassignment? Why can't you just, find a seller, sign the investor purchase agreement, then find a buyer, reassign the contract, then back out and wait for your check. Why do you need a title company at all?
Ok, so I have a question about wholesaling. I emailed a bunch of FSBO ads on zillow.com stating in full my motives and intentions, (that i wanted to buy the property from them with the right to assign, lock up the property for 14 to 30 days...etc, Then I was contacted by this guy, who said that he already completed a short sale and that he'd be interested in me doing a wholesale. Now I'm familiar , in theory, with the process of whole sales, but when I went back to look at the property that I emailed him about, It was a beautiful 1,999,999 home, located downtown chicago. I'm not sure how that works, this would be my first deal, and he's agreed to sell for 720,000, that's right at 40 percent below the purchase price. I AM SCARED TO DEATH that I may do something wrong, is this a wholesale? should i get an attorney? He knows that I will be assigning this property to one of my investors, and I'm just really nervous about everything. WHAt shud i do? WHAT process should take place, I only plan to make the the difference between the purchase price and the sales price. Is this normal in real estate. Please someone help. With step by step on what they would do. I am completely freaking out. HELP
I have a question When you are doing the assignment of contract do you deal with the owner or their realitor? Will the realitor try to talk the owner out of do assignment of contracts?
Sincereone
In most cases a home that is listed with a realtor. The negotiations should be thru their listing agent. Continued success.......Lubertha
"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
so you go through the listing agent you let them know what you want to do and then they see if the owner would agree to the assignment of contract?
Hi
I am a real newbie. Also a very scared one, but needy too (money)
What kind of contracts or what do you need to do bird dogging and how do I start?
Sorry for the dumb questions I'm about half way through Dean's book.
I would eventually like to do assigns, but have not enough knowledge nor confidence in myself for that yet.
Any one who can reply to help me here would be good. I am located in Ct. I guess bird dogging is legal here?
Thanks
sue
Here it is a year later and your work on this site is still teaching. Thank you very much.
Barb
Owen Properties, LLC
What is the difference? Hi everyone my name is Carrie Im new to all this and just starting to ask questions any help is appreciative!
There are so many people teaching on here, that's what makes DG.com so special. All the wonderful people who are willing to take the time to help each other. That's why I joined a year ago, little did I know I'd be helping so many people OR that I'd get so much help in return. This site and everyone I've met has been such a blessing to me and changed my life!
Hi Carrie,
To answer your question about IEE go to this link: http://www.deangraziosi.com/node/2563
Birdoggin is finding a property and passing the info to another investor for a finder's fee you both negotiate on.
Wholesaling is locking up a contract and then flipping that contract to an end buyer at a slightly higher price.
Hope that clarifies it for you. Best of luck! =)
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
I have posted a few times and it seems like everyone skips past my question and answers everyone else's. In deans book matt larson says to use an attorney instead of a title company. does anyone know how much this would cost and also when you lock the contracts up what do you do then once you have your buyer and your seller?
They told me I couldnt, So I did it.
The motivation for me, is them telling me what I cannot be.
I'm sorry you haven't gotten an answer, there are so many new people joining it's hard to keep up with everyone at times. Matt Larson may prefer to use an attorney, I prefer to use a title company. It all depends on the relationships you make with both and their fee. Of course an attorney will charge you more, the title company also charges a nominal fee, but it all comes out of escrow.
When you lock up the contract with the seller you go to the title company or lawyer and open escrow, they do their job finding any existing liens and such, then you take the second contract (the assignment) signed by the end buyer and give that to the title company or lawyer. They notify all parties if there's any problems and when closing will be and if you want your check sent or picked up. Does that clarify it for you? Best of luck!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Yes it does. The reason I asked is because in the book matt stated that title some title companies wont do assignments at all. Seeing as you prefer title companies have you ran into that problem?
They told me I couldnt, So I did it.
The motivation for me, is them telling me what I cannot be.
Yes, actually the title company I opened escrow with said they did double closings, but when I handed in the assignment contract they said they didn't. So we used the end buyers title company and it worked out great. You might have to do a double closing now, but it works fine too. Just make sure you always close on Friday. Hope this helps! Remember, there's always a way around an obstacle. When someone tells you it can't be done, move on till you find someone who does or find another way around it. Investors are always coming up with new ways around any brick walls, because we're not going to let their ignorance stop us! ;D
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Once again thankyou Elena! I am really excited about doing this, because assignments seems like it is right up my alley. One more question. When the deal goes to closing am I supposed to be there, or it doesnt matter if I am present or not? Sorry to ask so much, but just trying to get as much helpful information as possible.
They told me I couldnt, So I did it.
The motivation for me, is them telling me what I cannot be.
You can have everything faxed, emailed or overnighted nowadays. So unless they tell you specifically that you have to be there for some reason, I'd say no. On my last deal the owner lived out of town so I went by myself to sign the papers and pick up the check because I was heading to Phoenix and didn't want to wait around rfor the check to be sent. Yes, they will even send you your check!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
ok ok ok ok..... sorry but I am so nervous right now that my hands are shaking as i type this. my brain has completely shut down. I posted an ad today and within two hours i recieved a respons. this guy owns four properties and is selling them all at a 60% discount. one of them even has tenants in it already. i know i can do this. i guess what my question is do i need to pay for an inspector and an appraiser? or just like where do i start? i'm sorry to ask but i need to calm down. i cant believe this is happening.
They told me I couldnt, So I did it.
The motivation for me, is them telling me what I cannot be.
one thing i remember reading in the book is when you LOCK-UP with a contract, you could put in a clause to delay the earnest payment to the date of the end of the contract (14-30days). Then it would be paid by your buyer. is this correct?
It is very encouraging to read these informative posts. I am glad that assignments are working for you all and you are having continued success with that.
For me , it is totally different... Here in Maryland , I have been laughed at ever since I started in June .. The people around here have a one track mind: you have at least a 720 credit score and 3 percent of the purchase price cash from your bank account at the start of proceedings... None of this stuff waiting til escrow or until you find a buyer. The folks here are having none of it . Please understand , the ideas and techniques that Dean writes about in his books DO WORK - that is NOT the issue -- it is the people around this **** area . Sorry , I am venting and frustrated.. They are not friendly toward these ideas , even though everyone involved wins and makes money ..Unbelievable !! Oh and offering low prices -- forget it !! There are people that have had their home for sale for almost 2 years now and will not come down to where the market is vs. the bloated prices from earlier in the decade.
If anyone has any suggestions or thoughts , please share them with me . It would be greatly appreciated.
Again , its not Dean's techniques -- it's this stupid area I live in.
Randy
Looks like these sellers just aren't motivated enough. You need to find sellers that NEED to sell asap. If you can't find them in your area you might have to look outside your area like Matt did. As for assignments, if you can't do those then you can do double closings, there's always a way to get what you need to do done. This won't stop an investor, they just find new ways around it. Those that disagree are stuck in that old mentality and won't make any money that way. Stay current with what's working in this market and be adaptable, that'll make you truly successful! Best of luck to you.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Thank you so much for the response.. Things may be changing for me ... This week I submitted an offer on a short sale that needs minor rehab.. I plan to renovate and resell . The asking price is 50k below market value .. So wish me luck !!
Randy
That's great news!! Good luck with this one, hope you get it and it's a great deal. But if not, don't worry, because there's another one right around the corner!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Hello. Thanks for all the insights on this forum.
If I 'lock up' a deal with a seller and build in a 30 day inspection period as my time to look for my buyer....then I can't find a buyer. Does the seller usually get pretty upset when you back out on the deal? What is the reason you give them for backing out? Do you simply say, 'my business partner did not agree with the deal?
Thanks for the clarification and any strategy to circumvent this problem.
Sonriffic
What you need to do is build up your buyers list first and then lock the property up in a contract. That way you can send your property to all of your buyers on your list and you are bound to get one that will want your property. What you will also want to do in your assignment contracts is put contingent clauses in their that will help you back out if you need to.
Jesus looked at them and said "With man this is impossible, but with GOD ALL things are possible." Matthew 19:26
"I know the price of success, dedication, hard work, & an unremitting devotion to the things you want to see happen." Frank Lloyd Wright
"If we did all the things that we are capable of doing, we would literally astound ourselves" Thomas Edison
"This time, like all times, is a very good one if we but know what to do with it." Ralph Waldo Emerson
your agents get a percentage from the buyer not you. so the more they do for you the more they make. And also they build a long time customer.
I am brand new to the site and this is my first time writing on a forum. I understand the concepts I learned in the book but I have one question in particular. Say I put in an offer far below FMV and it gets accepted, but I dont want to buy it I want to lock it up under contract and find a buyer that wants a house for a huge discount and make myself a profit in the process. My question is when my inital offer is accepted am I just supposed to tell them, "Sorry i'm not really buying your house." and then go on to explain my intentions? This may be a silly question but I figured i'd get all my inexperienced questions out of the way quickly.
I would be grateful for any and all help. Thanks.
FSBO's are my favorite. Even if I use a Realtor I like meeting the owner personally and building rapport. It's very important to me in my business. Thanks for the kind words, I appreciate it. Merry Christmas!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
I called the department of RE California. I described the assignment deal. The man said I need RE license to make the deal. Is this so? Please help. Thanks. Randy
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