Wholesale investing in the phoenix area right now

[Anita Walter]

Hello, im trying to get this wholesale thing going and im here in phoenix  were I've heard it is a great market for wholesaling. With all the expansions happening all over the valley I can make money very easy is what im told by a few local investors. I have little to no money but am hungry to get my first wholesale deal. I have used several different educational sources to gain my knowledge and have come to realize that I wont know what its all about until I actually do it. I have researched and found properties im going to check out this weekend and want to try an have a deal done by mid January. I will be using hard money to get my first wholesale with hopes of selling with in the same day or the same week. Can this be done with no money of my own ? and what does the lender do in this case i would need 100% financing ??? Please help !!!!!

[Chris Piper]

@Anita Walter, I agree with Casey. Here is a typical wholesale deal breakdown.

1. You find a motivated seller. And I do mean motivated. If they're not motivated, then move on and find someone that is motivated.

2. You do your research and numbers and figure out your MPP(Maximum Purchase Price)

3. You send the seller a purchase agreement or call them with your offer.

4. If they agree to your offer, they sign it and send it back to you.

5. You now have 30 days(hopefully much sooner) to find a cash buyer to assign your contract with the seller to for more than you agreed to pay the seller. If you put a property under contract for $50,000, then you might assign it to a cash buyer for $55,000 or $60,000 making you $5,000-$10,000 for being a wholesaler/middleman.

6. The cash buyer agrees to your asking price, you collect a non-refundable deposit from them of at least $2,000 in case they back out and can't close.

7. The cash buyer signs the assignment and gives you your check of $2,000, and once it closes, you get the remainder of your assignment fee.

Typically you don't need any money unless you need to give the seller earnest money, which can be as little as $20-$1,000 depending on what you guys agree on. Hard money is typically used for rehabbing a property, not wholesaling. It's short term funding while you rehab a house.