Help a new investor get into wholesaling

[Victor Baronich]

Hey guys,  I currently have a very strong background building houses, and have never been apart of a real estate transaction.  I am wanting to get into wholesaling in order to make some quick money to pay down the mortgages on our rentals.  I am having some trouble wrapping my brain around a few concepts. I have searched for answers but can't seem to find my exact questions.  I have read Phil Pustejovsky's book and watched tons of videos. I am on the cusp of spending the $15k to join Phil's training program.  Maybe someone can point me to a post or video or just enlighten me on these questions and save me the money:

1.  How are you finding these "distressed" deals?  It seems to me that most people are putting out signs such as the "we buy ugly houses", or maybe a craigslist ad.

2.  Exactly what type of contract are you using, and what are you saying to a homeowner to "tie up" the house.  Why would someone sign a contract with you which prevents them from selling their home, while they wait on you to find an investor buyer?  Is there a catch that I'm not aware of? My guess is that if you can't find a buyer, you are on the hook to purchase the home.  What if you can't get the capital to do this?

3.  Where do I get this contract?  I have asked my lawyer and several real estate agents, and they said just download one off the internet.  These seem to be geared toward traditional transactions, and I can't see how they apply to the creative transactions.

Other than that, this is how I am thinking the flow of the transaction goes:  find the deal -> "tie up" with contract -> find buyer -> sell contract to the buyer for a profit.  let the investor close with the homeowner.

Is that correct?

I am very excited, and willing to learn.  This is just very new.  Thanks for any help!

[Karen Rittenhouse]

Originally posted by @Victor Baronich:

Hey guys,  I currently have a very strong background building houses, and have never been apart of a real estate transaction.  I am wanting to get into wholesaling in order to make some quick money to pay down the mortgages on our rentals.  I am having some trouble wrapping my brain around a few concepts. I have searched for answers but can't seem to find my exact questions.  I have read Phil Pustejovsky's book and watched tons of videos. I am on the cusp of spending the $15k to join Phil's training program.  Maybe someone can point me to a post or video or just enlighten me on these questions and save me the money:

1.  How are you finding these "distressed" deals?  It seems to me that most people are putting out signs such as the "we buy ugly houses", or maybe a craigslist ad.

2.  Exactly what type of contract are you using, and what are you saying to a homeowner to "tie up" the house.  Why would someone sign a contract with you which prevents them from selling their home, while they wait on you to find an investor buyer?  Is there a catch that I'm not aware of? My guess is that if you can't find a buyer, you are on the hook to purchase the home.  What if you can't get the capital to do this?

3.  Where do I get this contract?  I have asked my lawyer and several real estate agents, and they said just download one off the internet.  These seem to be geared toward traditional transactions, and I can't see how they apply to the creative transactions.

Other than that, this is how I am thinking the flow of the transaction goes:  find the deal -> "tie up" with contract -> find buyer -> sell contract to the buyer for a profit.  let the investor close with the homeowner.

Is that correct?

I am very excited, and willing to learn.  This is just very new.  Thanks for any help!

 Hi @Victor Baronich:

If you're willing to spend $15,000 just for a training program, may I suggest looking into a HomeVestors franchise (the "we buy ugly houses" people). You'd get so much more in addition to training, but that is included as well and all of these questions would be answered. Just a suggestion!