Ok so I've found a few deals... how do I submit an offer?

Question

I have searched high and low for the perfect deals to wholesale. I've found about 15, Five of which I know for sure I am going to make an offer on. They are through realtors, how do I submit and offer? Do I submit my own offer sheet or does the realtor handle it all?

Phil * · Answer

A professional wholesaler knows his buyers list well, and has a buyer before he finds the deals.  If you have a handful of qualified cash buyers, send them an emal blast with the ..

- Address
- 3 Sold comps
- ARV
- Repairs list and/or cost
- Wholesale price
- Your contact info

Scott R. · Answer

Yes. Some title companies here won't do it so its better to find one locally to you and just ask them if they do a simotanious close or double close. Get someone on your team and start doing the deals

Matthew Green · Answer

can you simply call a title company and ask about their double closing policys?

Jon Holdman · Answer

Its simply two separate transactions that use the same money.

Wholesaler B makes a contract to purchase the property from seller A.  B then makes a contract with end buyer C to sell the property.  Take both contracts to a friendly title company.  End buyer C wires in their money.  The title company uses that money to fund both the B to C sale and the A to B sale.  They do two set of paper work, including two deeds.  They record the A to B deed first and the B to C deed second.

Now, there are numerous things that can go wrong.  The end buyer C needs cash, hard money or a lender who's understanding about the transaction.  If they are using a conventional lender, that lender will look at the title before they find the transaction, and may will refuse to fund it when they see the seller doesn't own it.

Some lenders want seasoning on the ownership.  Because B owns it for a matter of minutes, the won't fund C's purchase.  FHA, in particular, requires 90 days ownership by the seller.

Some title companies won't do this sort of transaction.

One way to make it work in more case is "flash cash".  B borrows the money to make the purchase from A for a very short time.  So, one batch of money comes from C or C's lender and a second batch of money comes from the flash cash funder.  The flash cash is used by B to buy the property from A.  C's money is used to buy the property from B.  B then repays the flash cash loan with the money from the second transaction.

Corey Demuth · Answer

how does a double close work exactly? its a bit confusing

Chris T. · Answer

Wouldn't a double close eliminate all of these problems?

Corey Demuth · Answer

there's a big debate about that. half the people here tell you to discretely lie about it until you are ready to go for the kill strike, others say to be totally up front.

i have no experience but i seriously doubt most agents will want anything to do with you if you are totally up front about this and especially when they ask you how many transactions you have closed previously and you say zero, don't be surprised if you suddenly hear a dialtone.

they say it's easier to ask forgiveness than permission; if you play it right and close the deal, you might be able to come across as never having intended to deceive the agent about your intentions and get them to work with you again (the bottom line is you closed and got them money)

Matthew Green · Answer

Is it a good idea to contact the agent and disclose to her that you are looking to assign the property to an investor and not buy it from them. ?

Jon Holdman · Answer

Do your own marketing.  Bandit signs, direct mail, door knocking, whatever.  Everything on the MLS is already visible to anyone who wants to buy.  If you're going to wholesale off the MLS, find an agent who will work with you and submit tons of lowball offers.

Tiara Murray · Answer

I see... where do you guys recommend the best place to find deals?