Steps once you locate a deal.

[Todd C.]

Hey all, I'm fairly new here and wanted to introduce myself. I work and live in NYC and will be attempting to wholesale on a part-time basis in the surrounding areas. I've read a whole lot on the matter, listened to a bunch of podcasts and am in the process of writing a whole bunch of yellow letters to start my marketing off. 

With that said, I can't help but get confused whenever I read or listen to someone when they are talking about the steps following making an offer. I understand once you have an agreed upon offer you get a contract together (which I've taken from this site) and sign it. But everyone always mentions something about escrow and/or earnest money and I can't help but not completely understand the process surrounding that. So let's say I have a deal for $100,000. I bring the contract to the seller and go over it with him, we both sign it...then what? 

I'm also confused, and this is quite possibly a very dumb statement, with why sellers are more inclined to sell for cash rather than with a buyer that is getting financed? Is it strictly because the time it takes to close is much shorter?

[Walter Pape]

@Todd C.  congrats on keeping that momentum going!!! 

In this situation I would find comps in the area with similar property in the same area to get an understanding the after repair value (ARV). From here take your ARV-repair cost-assignment fee =your offer.

The key is understanding possible repair values and negotiation. Here are some links that will help.

Negotiation:

http://www.biggerpockets.com/renewsblog/2014/07/04... 

Within the article it talks about offering based off of 80%

Repair cost estimation

http://www.biggerpockets.com/renewsblog/2014/04/21...

gives lots of good information on how to learn repair cost estimation 

Go in with a plan, and leave with the contract. Most important enjoy the experience, because you are one step closer to achieving your goals.