First deal looking to get under contract & wholesale

[Devin Davis]

Hey I'm a licensed agent in Memphis, Tn and i have found a deal i'm looking to wholesale on. I'm still in the process of building me a team of people to help in my future endeavors but for right now what do I need to do to get started?? I'm guessing i need to get it under contract and look for investors? How do I go about getting it under contract?

[Ben Roberts]

Yes.  You need to get it under contract.  If you'll PM me with your email address, I'll send you a copy of the contract that I use  But if you're a licensed agent, you should have access to the standard contract from MAAR, right?     

If you have an address in mind, you need to do a little research to figure out what the ARV is going to be, for example $100K. Multiply that times .70 and that will be the most that a seasoned investor is willing to pay for the property, so $70K. Once you know that number, go look at the house. Try to figure out how much it's going to need by way of repairs, lets say it needs cosmetic work only $5K and you want to make $5K on the deal. Take the initial $70K, subtract $5K in repairs, and $5K for your profit, then $60K is the most you can pay for the home. I would offer the home owner a contract for $50K, leaving plenty of room for negotiation.

I'm working on my second deal right now, so I'm not expert, but I'd be happy to answer any questions you have or at least try to point you in the right direction.  There are a ton of very helpful folks in the Memphis area.  I think I've met all of them via Bigger Pockets.