How does wholesaling really works?

[Donald Taite]

I see a property that I would like to wholesale to an investor..but here is the catch..I have no funds to buy the property. I have heard all the stories about how you can buy properties with no money or no credit.Well..if that's true..what do you have to do? Based on all the info I have gathered this property would be a good deal. People always say get the house under contract but I feel real stupid trying to put a house under contract when I don't even have the money to buy it,which I'm sure they are going to want.I guess im getting a little frustrated because this property is a foreclosure for $175,000 and the comps are selling around $300,000..and thee county has the property assessed at & $270,000. The home does mold remediation and new hardwood flooring and new carpet..the kitchen def needs updating. But if you are trying to wholesale thee property why would you be worried about rehab cost and ARV? Please someone give me some guidance.

[Curt Davis]

@Donald Taite

Wholesaling works as follows: You find a home and put it under contract.  You then advertise the home and hope to find a cash buyer.  You assign your contract to your buyer and when it closes you get paid.  Now that was the simple version. 

Understand that if your buyer sees how much you are making and they will when they sign the assignment contract they might not like that.  You can double close but you need the funds or at least need transactional funding for this. 

You feel stupid bc you dont have the money, stop feeling that way.  Here is a catch phrase I say and it takes all that away so you better write this down, this is what I say when I an negotiating with a seller:   

(  Mr / Mrs Seller,  I work with a network of cash buyers located all around the country and I would like the opportunity to present it to them for the next ( 30/60 ) days and see if I can help sell this home.  If at the end of the time I have not been able to bring a cash buyer we can either part ways as friends or look at reducing the price.  )

Understand they when wholesaling you really can only sell to a cash buyer, your not truly looking for home owners who will live in the home as they will most likely us bank financing.  

Hope this helps you a little, let me know what you think!!!