Unclear on Wholesaling Details

[Kole Kingslien]

Hello BP community!

I am post this thread in hopes to get some helpful insight on the Wholesaling details! My goal with Wholesaling is to raise capital, to fund my buy and hold purchases. I am familiar with the wholesaling concept, and generally how it works. I have already sent out a marketing campaign, and am ready to give it my best shot. I understand that Wholesaling is not easy, but I know it can produce some of the best leads. The following are some areas that I am a little confused about:

• Most of the incoming call scripts I have viewed, always include lines like " If I were to offer you cash, and I can close next Friday, what is the bottom offer you would accept?" or " We are a company that buys houses all around in your area for cash". I understand that these statements puts us in a position of power, building our credibility, and cash buying power, however my concern lies with the fact that I can do not have the power to purchase a property for all cash, as I am on a budget; I also do not buy houses all around the area yet. I have a small amount of money saved up for a reserve on my currant buy and hold (about $4,000), and I have a small amount in my savings that I plan on using towards Yellow Letter Marketing. Can I/Should I still make these statements that every script I come across is including? Is there anyone out there who can elaborate on these concerns a little bit?

• I am also curious about what contract I should use; Should I use a purchase with the option to assign? Are there any legal implications I should worry about?

• If/when it works out, and I get a Wholesaling check, how do I file taxes on this income, I am very confused about this, so feel free to spell it out!

• Should I expect to give sellers an earnest money deposit? If I do, where does this check go, and how do I proceed with the entire wholesaling process after I have an accepted contract?

• Phone calls: How do you guys screen for motivation (I don't want to look at 50 houses a month)? What are some common things you say, or some objections you have to face? I have watched a lot of YouTube videos, and read a lot of scripts, and most people are saying things like "Before seeing the property, we would have to be in the ballpark of X purchase price, if that's a number you could work with, I would be interested in scheduling a time to look at your property", they usually ask this after they've already asked the seller what they want to get for their home. How are they coming up with these numbers, especially if they are answering their calls live, and don't have ARV comps sitting in front of them?

I know a lot of people hate the script idea, but I think it really helps beginners to keep on track, and remember what information to ask, along with helping with confidence in the beginning. 

• I know the double closing idea is favored by a lot of people, because there is little legal controversy, since you are taking title on the property, however, in this case you would actually need the cash to close, correct?

• I want to make sure the seller is prepared for what to expect in this process, does anyone know what kind of closing costs, or anything else that both parties can expect, during a Wholesale transaction? 

Hey BP community, you guys have been extraordinarily helpful thus far, and I appreciate all of your help! Once I gain experience, I really look forward to giving back to this community and helping others out there!!!