What are the steps to wholesale a property?

Question

I want to wholesale a property. I'm a college student and I have no money at all. 
I heard that you can wholesale a property without any money down. Is that true?

Can you please tell me each step on wholesaling?
Like how to get a Purchase and Sale Agreement. Will I be able to get one cause I don't have money at all? Will the seller entertain me cause I'm just a college student?

I think I've read somewhere in the internet that you need a real estate license in order to legally do wholesaling. Is that true?

How to buy foreclosed property from banks? Can you write the steps?

Can I buy foreclosed property? I'm just 20 and I don't have money at all.

Will the bank entertain me? I am afraid that they will think I'm just a kid and not someone to do business with.

Who will I approach in the bank?

What will I tell him or her?

Is the "Purchase and Sale Agreement" the only thing I need from the bank?

How will they sell it to me? Will they even consider selling it to me, someone who doesn't have money at all? Someone who's just a college student and doesn't have a job?

Are they going to need proofs that show that I have the ability to buy it? I know that I'm not paying them, but my future buyer will pay them. But will they still look for proofs (job, bank account) that I have money because why would they entertain someone who literally has no income?

How will I find a buyer whom I will sell it for a profit?

I've read in your book that the buyers I should look for are inverstors who renovate houses? Where will I find them? (I know of advertising in the newspaper) What are other ways to find them? I don't have a single contact. I'm just starting out.

If I found one, what are the things that I would tell them? Will they entertain me cause I'm a newbie?

How can I negotiate with them the Assignment Fee I am going to receive? How much percentage is the norm?

How am I going to protect that Assignment Fee? What if they just wait till my "Purchase and Sale Agreement" is expired so that they can avoid giving me an assignment fee?

If I don't find a buyer for properties that I secured a Purchase and Sale Agreement for, will the bank entertain me next time cause I wasted their time?

Please tell me every single (in order) step I should do from start to finish including what things I will tell the banks and buyers.
 :D

Brian P. · Answer

Jena

Where are you planning to do this? You indicate your in the Philippines in your profile but I have a feeling your going to college in the states, if so where? We might be able to give a better answer.

Tony Severino · Answer

Jena
            
            Wow!!!  What a great post... Tons of real world questions..
            
            I am a full time investor, in the Chicago and NW Indiana areas.
            
            I am going to try step by step attempt to answer your questions.
            
            A Purchase and Sales agreement is an agreement ( contract) between you and the seller. Most people get them from a seminar. 
            
            You do not need to be a Real Estate Agent in order to wholesale. A Real Estate Agent sells property that they have no interest in. If you have a P.S. Agreement with a seller, you now have an vested and viable interest in the property and thereby can look for a buyer.
            
            When you buy from banks, you will need credit, cash or a bank loan. Usually these are listed with a local Real Estate agent, and you submit an offer to the bank through the them. Be prepared to submit "proof of funds" with the offer. That means that when you send in the offer, you will have to prove that you have access to the cash, be it a loan or cash.
            
            I do not think that your age will be a complete hold back.  I think it is reasonable to think that some homeowners may not take you seriously, however I know several investors 21 and under who do well. I think success in this business comes from a good education in your chosen career and confidence in your product... (Your solution for the seller)
            
            As far as finding active rehabbers... you may want to consider taking a drive around the neighborhoods that you want to wholesale houses in. Look for dumpsters, and places where folks are working on the houses. Take a look at the home depots etc and talk with the people who are buying materials..some may simply be the contractors for the investors and you can get the contact info from them ..but you may also find a contractor who want to get our on his own.
            
            A local Real Estate Investing Club may be helpful as well..You can use Google to locate that.
            
            When you find a house from a traditional seller,. and you are talking with the people you want to sell it to.. don't name price... He who names price first loses. Simply ask them for their offer and resist to say how much you want to get. You may get more than you want!!!
            
            Then you assign the agreement to them.. and pass it all over to your attorney to cover your backside.
            
            Instead of dealing with banks, since you mentioned you lack cash,,, a bank will want you to have some "skin" in the deal, you want want to focus on homes in the neighborhoods that need love. When I find one, I simply drop a letter in the mail and tell them that I am interested in buying a house in their neighborhood, if they are interested in selling, please call me.
            
            Sounds different,,, I know, but for me .. it works.
            
            Tony Severino

Richie Walsh · Answer

i'm with jena, the articals are more of a refresher course for people who already know.
jena is asking alot of questions that i didn't even know how to ask.

how do we approach these professionals? i think we need a little more info on what we should be saying/asking. don't want to be saying "homina-homina-homina"

"under contract"?  specifics are needed...

etc.

James Hiddle · Answer

Jena first welcome to BP second you need cash to buy a foreclosure. If you don't have cash you need to find it. Hard money or private money might be an option. If you have family members who can loan you the amount that would be better.
            
            Plus you need skin in the game as they say you have to come up with a down payment as well.
            
            Once you found a loan you deal with the agents representing the banks. They will submit offers on your behalf to the banks. Make sure you do your due diligence on the property before submitting offers to make sure it's a good deal.
            
            Now to find buyers you need to advertise for them. Either online like craigslist or offline like your local REI club,newspapers,direct mail,post cards,bandit signs,business cards,etc.

Jena Martin · Answer

Jena

Ralph S. · Answer

Hi Jena

And welcome to BP.

Believe it or not, your questions have been asked before, and BP is a great place to find those answers.

Rather than respond to your many questions directly, I suggest you use the BP search facility.  Simply select "Articles" from the drop down list, and type "wholesale" into the text box.  You'll find many articles written by BP members on the topic.  If you can't find all the answers to your questions, then try asking specific questions in the forums.

Have fun.