New to Wholesaling

[Ryan Billingsley]

We have had some success with our first batch of Direct Mail, and have our first house under contract.  We locked it up for 2 months at a great price!  We listed it on craigslist Saturday and already have 12 people interested and a offer made already.  Once we agree on a price what would be the next step to take?  Do we choose the title company to close the deal and also how do we get paid?  Thanks!!!!!!!!

[Sean Brooks]

@Ryan Billingsley 

 First of all....CONGRATS! You are like now in the top 20% just for taking action.

Is your buyer definitely a cash buyer? How confident are you that they will close the deal?

There are multiple ways you can get paid. And since you have never worked with this cash buyer before, you want to make sure they actually have the cash and can close.

Ideally you want to do the "assignment of contract" with them.

However, there is a very good chance that they may not even know what that is. And it could potentially scare them away.

If you haven't had them sign anything yet, you may want to set an appointment with your title company or attorney and have the buyers come in to their office to fill out the paperwork. This way, the buyers feel super comfortable and if there are any questions, they will get answered and there shouldn't be any problems.

Getting paid: So up above I talked about making sure these people can close... because the last thing we want, is for them to tie up this property from you, and after "x" amount of days, they end up not closing! You may lose the deal (and the $$) depending on your timeline. 

SO, I would put in your assignment contract that their fee is non-refundable. Or at least a portion of it. This way, if they back out, at no fault of yours, you still get compensated for the deal!

Hope that helps man!