Wholesale Process

[Mark Maire]

Am I missing any steps?
1. Find a motivated seller, with deal potential.
2. Determine ARV and REHAB COSTS at meeting.
e.g. ARV: $150,000 REHAB: $25,000
3. Negotiate a deal.
$150,000 x .7= 105,000 - $25000 = $80,000 - $5000(min. assignment) = $75,000 max offer.
4. Agree at $70,000
5. Seller and wholesaler sign Purchase and Sale Agreement with option to assign.
6. Find cash buyer.
7. Agree on price @ $80,000.
8. Wholesaler and CASH BUYER sign ASSIGNMENT contract.
9. Take contracts to title company, cash buyer wires $80,000 to title company.
10. Home seller signs DEED documents to cash buyer. Home seller receives $70,000.
11. Me, the wholesaler receives $10,000 from title company.

Am I missing something? Do all 3 parties have to be present

[Jeremy T.]

I will play devils advocate here.  

The wholesalers job is to get an accurate assessment of ARV and generate a conservative repair estimate. He/she also has to market for the property, develop leads, negotiate, and close.

With that in mind, if a wholesaler were to bring an investor a property with a fair asking price (70% ARV-conservative repair est.) and they (the buyer) get bent out of shape over an assignment fee? The buyer can pound dirt and find someone else to work with.

Best of luck finding properties.

The rehabber having any ground to suggest the value of the wholesaler in that particular relationship is laughable.  Rehab investors are a dime a dozen...there aren't very many 'average' wholesalers, even.  

IMO, the wholesaler's primary concern should be consideration of the seller.