Contracting a Wholesale

[Trevon Peracca]

Good evening BiggerPockets,

Would anyone mind sharing the details of the paperwork involved with a wholesale deal? I understand the process, but as you can image, I do not want to look like an idiot going to collect a wholesale fee that I don't rate.

If I understand correctly these are the steps I need to take for a wholesale:

1. Market for sellers

2. Find deals

3. Analyze the deal (MAO= [ARV] - [FLIPPER PROFIT] - [REPAIR COST] - [FIXED COST] - [WHOLESALE FEE])

3. Negotiate the deal with seller

4. Make the offer

5. Contract the seller with the purchase and sale agreement

6. Contact my buyers

7. Negotiate the deal with buyer

8. Assign the contact

9. Get information to the title company/closing attorney

10. Show up at closing to collect the wholesale fee

*Steps 5 & 8 are where I get nervous with wholesaling.

So that being said, it appears to me that there are only 2 forms that I need to generate throughout the process. This seems a little too easy... If someone wouldn't mind providing some guidance I would absolutely appreciate it. Thanks a lot.

Best Regards,

-Trevon

[Curt Davis]

It basically is that easy. Once you sign contract with seller you then assign to your end buyer. Collect fee at closing. 

I find that guys wholesaling like you get nervous bc what happens if you cant sell but you told the seller you are the buyer.  Rather then have to pretend I am the buyer you might approach it like this:

Seller, I work with a large network of cash buyers located both locally and also from around the country.  I would like the opportunity to present it to them for the next 30 days and see if I cant bring a cash buyer.  If at the end of the 30 days I have not been able to secure a cash buyer, we can either part ways as friends or we can discuss lowering the price and I can put it back out to my list again

This approach takes the pressure away of making them think your the buyer and also takes out any weasel clauses like " subject to 3rd party or partner inspection " in the event it doesnt sell.

hope this was helpful.