Some beginner questions about wholesaling in Texas (DFW)!

[Account Closed]

I am a starting out wholesaler in the DFW/Arlington area (I literally just bought business cards). I have already started marketing and looking for sellers. It's a slow burn because I quit my serving job (risky move I know) in order to devote more time to driving for dollars and finding properties in more inexpensive ways. While that works, I am trying to nail down the specifics of the actions that I should be taking.

The way I understand VERY basic wholesaling overview is as follows:

     1. Find a motivated seller

     2. Inspect the property

     3. Make an offer (Say $50k)

     4. Get the property under contract

     5. Give contract to title company (or lawyer?).

     6. Find a buyer

     7. Assign the contract to the buyer (Say $60k, or are these two numbers flipped?)

     8. Swim in my buckets of money /s   

I just have a few questions that I would like to have answered before I actually have to do them.

     1. In Texas I can use the TREC contracts, but I understand that I need an out clause. Are there any other modifications any wholesalers have made to them? Did you have a lawyer do this or is this something you can do yourself? How much did that cost you? Do I HAVE to have an Earnest Money Deposit to make the contract legally binding? Do I need it notarized? How do I make it assignable?

     2.I hear a lot of wholesalers saying that they do cash for houses. Is that something I can advertise, or is there only a certain type of financing that allows the seller to receive cash for their home?

     3. Do I assign the contract by simply talking with the title company?

     4. How do I ensure that I get my assignment fee?

I've tried to make this as organized as possible, let me know if anything doesn't make sense. My few questions, kinda turned into a lot..

Thank you everyone!

[Guy Gimenez]

@Account Closed

Consider working with another investor who will pay you to bring a solid lead that they can then work on your behalf. You simply don't know what you don't know and a bullet point answer here will only lead you astray even further. Consider the fact that you're dealing with people's largest investment and not understanding the contract you're having them sign, giving them false hope about a cash purchase when you don't have cash, and possibly leading them to lose their house while you're trying to learn this business is the wrong way to start out. Since you don't know how to negotiate and draft a solid contract, you're much less likely to find an assignee causing greater stress on the seller. Spend some time building relationships with active, seasoned investors so you can find someone who will show you the ropes so you can both make money and you will learn to do things legally, morally and ethically from the start.