Newbie wholesaler in Chicago

[Solomon Woods]

Hello everyone I've been studying real estate investing for a few months now & I plan on starting out as a wholesaler. I went out with one of my buddies and he's a full time flipper. He showed me his properties & how he estimates rehab costs but I'm still not sure on how to really get started with little to no money down. Can you really close a wholesale deal without spending over $1000? Also is anyone down to split deals 50/50 while showing me the ropes I'd love to connect with you. 

[Account Closed]

@LaToya Harris @Solomon Woods as an attorney I work with many wholesalers. I can tell you that whether you use a standard contract, such as Multi-board 6.1 or a customized one that you or an attorney drafts, will depend on the situation and where you are acquiring your property from. 

For instance, if you are finding a property on MLS or the party that is selling the property (who you are initially going under contract with) is represented by a Real Estate Broker, they will be less likely to agree to sign a contract which does not conform with the norm, such as the standard pre-printed contract.

In those scenarios, I protect my client, the wholesaler by modifying the language of the Contract through the attorney review process. This way, the Seller will feel comfortable enough to enter the Contract. The only thing I would have you the wholesaler put on the contract is that the earnest money deposit is due upon completion of the attorney review period. This way, if the Seller is not willing to agree to our modifications, and my client wishes not to proceed, we do not have to be concerned with recovering earnest money. 

In scenarios where the Seller is not represented by a broker or attorney, such as a by owner deal, I have found that they are more willing to sign any contract presented to them as long as the terms are deemed fair.