Wholesaling

[Tony Rosa]

I'm really interested in wholesaling been reading books and doing a lot of searching ,watching videos. I'm a just oil confused about the wholesaling ...  Buying low from sellers but my only concern is what if the seller still owes money to the bank ? How do you wholesale the property and make a profit?

[Adrien C.]

Originally posted by @Evan Roberts:

What have you been researching?! If the seller still owes money to the bank, that's of little concern to you other than it can impact their motivation to sell. As a wholesaler you simply make money by getting a contract on it for say $100k and assigning it with fees to someone else for a higher price. The seller then gets the contract price for the contract you entered into at closing and they pay the balance to the bank. 

Dude, this is horrible advise. First of all, the bank has to agree to sell the house for less than is owed. And there is a long painful process with stacks of paperwork for this to happen. It's called a short sale and it's not the easiest property to wholesale especially if you are just getting started. As you said, the owner can bring the difference in cash to closing so the bank isn't left short handed but that's one heck of a motivated seller. 

Sometimes they may owe more than you gave them but that's their burden to bare.

This is a piss-poor attitude and will only screw people over. If your goal is to run a business and make money regardless of who you have to run over- great, keep doing what you're doing and watch your business fail. If your business is to help people, you'll see your business flourish. I can't imagine that you'll get a bunch of referral business doing what you suggested "yeah, this dude gave me a super low offer and I had to pay $20K at closing to sell my house. Yeah he made some cash himself, but he was a really nice guy- you should use him." 

Zig- help others get what they want in life and you'll receive everything you want.