Wholesale Beginner

[Jacqueline Boomer]

I feel I understand the basics of wholesaling. But like to clarify a few things. Must I have the following things in place before I start:  Assignment contract for my area Brooklyn, New York with assign to included, earnest money $500-$1000, Real Estate Attorney or should I use a pre-paid attorney, title company/insurance, motivated seller(verified ownership), buyer (pre-qual or proof of funds). Is it good to put contracts when wholesaling in my name are create a business and put it in the business name. Any good title company/insurance you can suggest in Brooklyn, New York. Greatly appreciate you guys advice.

[Pearline Hardy]

@Jacqueline Boomer in my experience, you really dont need that much for earnest  money. Most sellers will take $50 or $100, and yes as @Jaelyn Whisler said you dont give it to the buyer. It goes in escrow with the title co or attorney. As for putting the contracts in your name or not, its up to you. Creating an LLC or other entity is just more money and as a beginner wholesaler, your money is better spent on marketing. I personally created an LLC because the transactional lender we were using at the time would only lend to LLCs

My best advice to you is 

1. network with some local investors on BP or at a REIA and ask them for their assignment and purchase contracts,

2. Keep learning as much as you can about wholesaling by asking questions, reading others forum posts, listening to podcasts, and reading books and blog posts abouy the subject (I do podcasts and audio books through audible on amazon in the car to work everyday), 

3. Find 3-4 buyers in your area and find out what they want. (I got mine from BP connections, and responses from craigslist ad I posted. I only have 6). Having 5 great buyers is better than having 500 you just get from anywhere.

4. Start marketing for properties ASAP. You will definitely learn more by doing and not being afraid to ask questions.

5. Make sure your ARV and rehab numbers are on point. Thats the best way to keep your buyers coming back for more...and referring you to others.

Great luck to you!!!