Wholesale Process (Newbie Question)

[Michael Hartman]

Hi BP!  This is my first post on the site.  I'm very new to real estate investing and am really having a hard time understanding the process from start to finish on a wholesale deal so I thought why not just post it here.  

So... We'll start from the beginning...

I find a deal, talk to the seller and we agree on a price.  I write up a Purchase and Sale agreement.  The agreement has 'and/or assigns' and I inform the seller that I am a wholesaler and that I send the deal to investors I work with who then buy the contract from me.  (At this point I need to give the seller an earnest money deposit correct? Do I give them cash or a check or do I put this with a title company I don't really know.)  

Next I send the deal out to my buyers list and/or market the property to potential investors.  Once I find a buyer I do an assignment contract with them and then send both the PS and assignment contracts to a title company...( I've noticed that finding a title company/real estate attorney that does double closings or even works with wholesalers/investors can be difficult.  Instead couldn't I just assign the contract to the buyer for a fee using an attorney? (i.e. I find the buyer, they're interested in the property... They then write me a check for let's say $5,000 as an example, the PS contract goes to them and they deal with the seller and title company to close the deal?)

Once the above portion is done, the title company does all the paperwork the deal is closed, I thank the buyer, seller and title company and move on to the next one?  How far off am I on the process and can anyone help guide me to fully understand?

Thanks BP! Look forward to the discussion!!!

Michael

[Jason Fraser]

I've built my buyers in 3 ways

1. Networking at local events REIA meetings and luncheons. This helped me to get a lay of land. Who rehabs vs buy and hold, which areas they like, rehab costs they are willing to spend at a max, whether they are cash buyers. When I grab their business cards, I write that info on the card and transfer all the info to a CRM program for better management. I use ZohoCRM because they have a free version, it functions like Salesforce which I use for full time job (reduced learning curve), and I can use it multiple devices especially my phone.

On the business cards I give people there's a link  to a webpage where they can leave their contact info and what they are looking for.  My domain is through godaddy and they offer a product called instapage for free as part of the domain package.

2. Running ads on Craigslist.  The purpose of this is to get people to my webpage to provide their contact info and what their looking for.

3. Calling bandits "we buy houses 555 1234". It serves the same purpose as number 1, networking and getting a pulse of who is looking for what, where, and how much they want to spend.

Two key things that is important is following up with your list on occasion and management. I'm going to use survey monkey to poll my list to see what their needs are these days since it's been six months since I've done this. I already mentioned using a CRM (customer relationship management) like Zohocrm to manage your buyers list.