How Do I Buy From a Wholesaler?

[Derrick Reyes]

Hello! I'm a newbie BRRRR investor and I understand making trusted connections with wholesalers is key to finding those off market deals. However it seems to be difficult to find information about how to acquire a property from a wholesaler. What is the order of operations?

When I'm interested in a wholesale property:

Do I make an offer to the wholesaler?
If so, who draws up that paperwork to make the offer and contract legal? 
Are agents not a part of this process?

Thanks!

[Jim Wellington]

My one addition to the advice already given is to understand what your signing. Wholesalers sometimes get to fly a little fast and loose.  Typically they aren’t bound a board or governing agency. For example, recently I purchased a house from a relatively new wholesaler. He insisted on sign his assignment agreement first. The issue was the assignment agreement bound me to the terms of his purchase agreement but he hadn’t and wasn’t initially providing me a copy of the purchase agreement. 

After giving him an education he finally caved. He was concerned that I’d be upset with how much he was making on the deal so he was reluctant to send it to me. Truth is I didn’t care how much he was making. I’m not counting his money and he shouldn’t count mine. I just wanted to know what I was agreeing to first. 

We’ve know established a good working relationship and I’m at the top his lost when he gets a deal. 

Point is don’t sign an assignment agreement that binds you to a purchase agreement unless you’ve seen the purchase agreement or have an exit strategy(or clause) until you do.