Months of Research - 1 Conclusion - No Risk No Reward

[Simona Potocar]

Hi There BP!

I first heard about wholesaling a little over two months ago, just randomly via a podcast hosted by Sean Terry.

As a realtor, I had never heard of this before! And to be honest, neither had my broker or any of the people I spoke to at my office. 

I took a deeper dive, and listened to may of the podcast episodes that Sean had put out, as well as the BP podcast episodes where the various methods of wholesalers were revealed in interview after interview.

I found many similarities among what I'd read and heard on the podcasts:

• Direct Mail is a very popular way to go
• You'll likely need to spend thousands in marketing dollars (most likely using yellow letters and postcards) to get the deals coming in to you
• Once you get one deal, the rest snowball
• Commit to one marketing strategy, bandit signs may work but they tend to be the least favored here on BP (due to their "uglying up a neighborhood" and the fact that many times they are illegal and get removed)

So I get the general gist of this but the questions I still have unanswered are:

• How does one know what is the right legal language to put on contracts?  For instance, I know you can assign a contract or do a double escrow, but how do I know what sort of language to put in the contract in order to make it work? Do I just pay a real estate attorney to draw those up for me or is there a less expensive way to go about this?
• How much, on average, does a person spend on direct mail campaigns and how many months go by before a call comes in that nets you a deal?
• How in depth do you go with your buyers? Do many wholesalers put together a mini appraisal or is that above and beyond that maybe doesn't need to happen until you're more established?

Thanks in advance - I know this is a wall of text!