Rookie question - mechanics of a wholesale purchase

Rookie question - mechanics of a wholesale purchase

Spokane, WA · Member since 2017 · 45 posts · 17 votes

Hi all!

I'm getting everything lined up to start investing and the biggest hurdle in my way seems to be acquiring property at the right price (duh!). While I don't necessarily want to be a wholesaler, my intention is to create a pipeline of potential properties that I can acquire just like a wholesaler.

Where I'm getting stuck is, what do I do if someone agrees to my price? Seems simple, but I have no clue about the mechanics of the deal after that point.

There are a few no-brainers:
- Write a contract
- Research the title
- Get financing or cash ready for payment

But even these seem a bit daunting. I imagine it makes sense to involve an attorney, but I don't know if state-specific boilerplate contracts are OK to use in this case.

My guess is that I can get all of the information about the title by talking to someone at a local title company. But are there title-related things for which I need to consult another type of business?

Perhaps someone could walk me through what generally happens once someone says yes?

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  • Investor · Basking Ridge, NJ · Member since 2016 · 71 posts · 33 votes
    8y

    @Taft Love disclaimer: I am not a wholesaler I am a buy and hold investor. I know just getting started can be a very daunting experience and it's never easy to venture into the unknown, but you just have to make the plunge and take action. What really helped me when I first got started was finding a local investor. It took a few phone calls to find someone who would actually mentor me, but once you do it makes the whole experience a lot more pleasant. While I read @Brandon Turner's The Book on Rental Property Investing, which is very helpful btw, there was no better experience then working first hand. The key to finding a good mentor is to offer up your time to them. Find a wholesaler in your area and ask what you can do for them in exchange for them just walking you through one actual deal. While you will have to put some time in for possibly no profits the experience is well worth it as you will be more confident and knowledgable on your own first deal. Sorry I couldn't be of more help.

    Good luck on your investing journey,

    Joe

  • Spokane, WA · Member since 2017 · 45 posts · 17 votes
    8y

    @Joseph DiNardi-Mack This is good info. I've found a local investor who was kind enough to work with me on a deal, so we'll be looking for something to work on together. Thanks for the advice!

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