learning wholesaler

[Harold Wine]

step by step on what paperwork do you need to present to an investor.

[Hattie Dizmond]

I'm assuming the investor you're referring to is the investor buyer you're attempting to sell the wholesale deal to?

If that's the case, then it's not so much "paperwork" you need to present at first.  See if this makes sense for a step-by-step...

1. Know the ARV (after repair value) of your target property. Make sure you have recent comps on at least 3 other properties in the same neighborhood & of similar configuration.

2.  Estimate the required repairs.

3. Analyze the deal and make sure there is enough margin. The 70% rule is a solid approach for wholesale deals. (ARV - repair costs) * 70% = MAO (maximum allowable offer)

4. Get the property under contract at or below your MAO.

5. Market the property to your investor buyers. If you don't have a buyer's list yet, list the property in the deals forum here on BP. Take the deal to a local REIA meeting. List it on Craigslist. If you have enough margin on a deal, you won't have a problem finding buyers.

6. Your investor buyers are going to want the property address and THEIR price. That would be whatever you have the property under contract at PLUS your wholesale fee. Note that the better your deal (i.e. the more under your MAO, the more you can ask for as a wholesale fee...don't squeeze your buyers!). They will want your repair estimate. Some will want your high-level list of needed repairs, and others will just want the $ amount you have estimated. They are going to do their own estimates. They are just deciding if it's worth their time to even go see the property. Some of the investor buyers may want to see your comps. Most of them will pull their own comps. Just be prepared and be transparent.

7.  Assuming you have a good deal and have a buyer, what you will need beyond that is determined by how you want to sell the deal.  Are you going to do a double close or an assignment of contract.  (If you're assigning the contract, you should have included "or assigns" in the name of the buyer on the contract.)  To assign the contract, the only thing you need is an Assignment of Contract agreement to be signed by you and your investor buyer.  There are examples available in the BP File space.  If you're doing a double closing, provide the investor buyer details to the title company.  They will tell you exactly what you need to do, produce and provide.

Have fun!