My understanding of the wholesale process...

[Alexander Thornton]

Hey everyone,

I'm 18 years old, and I feel like REI is the one thing I'd be good at, since I have great people skills, as well as negotiating skills. However, I'm still "iffy" on some of the procedures regarding wholesaling a property, so I'll jot down my understanding of the wholesale process, and if anyone could correct my mistakes and help me understand the process better, it would be greatly appreciated.

My understanding is that you first find a property that is either in Pre-Forclosure or FSBO. (With Pre-Forclosure properties, will I have to deal with the bank? If not, will I have to agree to a price that is at least or greater than the balance owed on the property?) You asses the house, check for any repairs needed, any liens against the property, etc. and negotiate a price that both the seller and yourself can agree to. (Is the only thing needed here a contract to purchase the property, including any other stipulations or agreements, for the agreed price, signed by both parties?) Then, you have your list of buyers lined up, so you contact them, and once someone has agreed to purchase the property from you, with your wholesale fee included ($5,000 - $15,000 from what I've read) , you obtain a Contract of Assignment for your agreed price, and have both parties sign.

After this step, does the end-buyer now assume the rest of the purchasing process for the property, and you receive a check from the title company in the mail? Or are you required to show up at closing, and sign any additional forms before the process is complete on your end and you receive payment?

I plan on wholesaling properties in Southern California. San Bernardino County, L.A. County, and Orange County are the areas I'll be dealing with. Anyone who would like to receive deals from me is welcome to send me an e-mail with your contact information once I get started.

Thanks for your help.

-Alex-