beginner wholesaling and have a motivated seller but need help

beginner wholesaling and have a motivated seller but need help

Jacob JosephPro Member
New to Real Estate · Metro Detroit, MI · Member since 2022 · 20 posts · 8 votes

Hello, I am a beginner in wholesaling and have found my first motivated seller I have visited the property and been in contact with the seller and they are definitely wanting to sell for all cash. I am looking for cash buyers and don’t have any that I trust so I posted on all the Facebook groups I am in for wholesaling real estate. The post was me basically me asking Who is a cash buyer and looking to buy in my desired area with where my motivated seller is.

Now this is the tricky part, I had a ton of people reach out to me asking me for the property address and to email them. The only problem is I don’t have the contract yet as I have yet to agree on a price with the seller and one that works so that everybody wins. And I can’t tell if these people want me to send me the address so that they can go behind my back and take it from me like I said I’m a beginner and don’t want to get screwed out of a deal because of my inexperience.

So I’m debating if I should reach out to a couple people and show them the address and just tell them I already have the contract even though I don’t, thoughts?

So if any experienced wholesalers could you please help me or people who have dealt with the situation it would be greatly appreciated, thank you.

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Title Representative · Irvine, CA · Member since 2017 · 874 posts · 519 votes
4y

Go with your guy on whether or not you can trust the person to not screw you.  If they seem like a good person who wouldn't do that, then try to pre-sell it to them so that you know you can actually dispo it before going under contract.  Or you can have them sign some type of NDA.  I don't have a sample of that though.

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  • Title Representative · Irvine, CA · Member since 2017 · 874 posts · 519 votes
    4y

    Go with your guy on whether or not you can trust the person to not screw you.  If they seem like a good person who wouldn't do that, then try to pre-sell it to them so that you know you can actually dispo it before going under contract.  Or you can have them sign some type of NDA.  I don't have a sample of that though.

  • Real Estate Agent · Mesa, AZ · Member since 2020 · 46 posts · 76 votes
    4y

    If you have a motivated seller who wants to sell for all cash, you should have written a contract on the house like...yesterday. If you're trying to sell the house to other people and don't have a contract yet, you're not understanding how wholesaling works. 

    Step 1: Get the house under contract

    Step 2: Sell the contract

    That's all wholesaling is. You've skipped step 1. 

  • Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes
    4y

    Get the house under contract FIRST, and then try to make sure how your are talking to, if you want to be extra cautions, make them sing an NDA.

    I will HONESTLY Check the records on recent sells in a 3 mile radius of that house and contact and skip trace the LLC's that bought in the area CASH!! Only reach out to them , then as plan C have the FB platform.

  • Denver, CO · Member since 2020 · 69 posts · 89 votes
    4y

    @Jacob Joseph -- 100% get it under contract first!!!! Locking it down is the biggest hurdle by far, it sounds like you are confident that the seller is ready to go -- I can't even tell you how many crazy things can happen before pen hits paper.

    That being said, make sure you are protected with an inspection period! That is your time to market the property to end buyers. I honestly wouldn't be too concerned about folks going around you (I think this is often overblown, however many facebook folks are not true "buyers" but rather other wholesalers), my main focus would be ensuring you actually have a deal to sell.

    Let me know if you have other questions, this is always a critical moment in the deal sourcing process!

    James

  • Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
    4y

    @Jacob Joseph Put the house under contract first! You are just working for free otherwise because nothing is stopping other potential buyers from contacting your seller and getting the contract. Do not communicate with anyone about this property until you have a signed contract that youve delivered to your title company. After that I would still not post the address in a Facebook group I would qualify the people that responded to your post asking for buyers. Im going to guess that many of them are wholesalers. There are a few questions I always ask to vet potential buyers

    1. Are you a buyer, what type of financing will you be using and will you be able to send me proof of funds

    2. Do you have a problem with a non refundable earnest money deposit being held by my title company

    3. What is the address of the last property you purchased and would you be willing to share the settlement statement if I needed to see it.

    Those 3 questions will pretty easily weed out tire kickers, wholesalers and non buyers. Youll be left with potential buyers for your deal and those are the people you can share the address with once you have the property under contract

  • Realtor · Tempe, AZ · Member since 2017 · 541 posts · 442 votes
    4y

    People will absolutely go behind your back so take your best guess on price and get the contract first

  • Jacob JosephPro Member
    OP
    New to Real Estate · Metro Detroit, MI · Member since 2022 · 20 posts · 8 votes
    4y
    Quote from @Lydia R.:

    @Jacob Joseph Put the house under contract first! You are just working for free otherwise because nothing is stopping other potential buyers from contacting your seller and getting the contract. Do not communicate with anyone about this property until you have a signed contract that youve delivered to your title company. After that I would still not post the address in a Facebook group I would qualify the people that responded to your post asking for buyers. Im going to guess that many of them are wholesalers. There are a few questions I always ask to vet potential buyers

    1. Are you a buyer, what type of financing will you be using and will you be able to send me proof of funds

    2. Do you have a problem with a non refundable earnest money deposit being held by my title company

    3. What is the address of the last property you purchased and would you be willing to share the settlement statement if I needed to see it.

    Those 3 questions will pretty easily weed out tire kickers, wholesalers and non buyers. Youll be left with potential buyers for your deal and those are the people you can share the address with once you have the property under contract


     Thank you very much Lydia i will make sure to use these steps to weed out any non serious cash buyers. I really appreciate the feedback and wish you the best of luck. 

  • Real Estate Agent · NJ · Member since 2021 · 567 posts · 127 votes
    4y

    You should get it under contract first, Even then I don't give out address until I feel confident they are serious, their are a lot of tire kickers out there. If you give out the address before you get it under contract someone will for sure go behind you back and take it from you. Need to protect yourself.

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