Need some help understanding the wholsale process

[Sean Gallagher]

First off thanks for your time! Basically Im looking for help and suggestions, please fill in the gaps where needed and please add anything if you can.

Heres what I have gained so far.

Find a property, locate owner of potential property, tell them your are looking to buy property in the area and wanted to know if they are interested in selling, they say yes.

Ok now what if this property is already for sale with a realtor? Don't they already have a contract with the homeowner?

Isnt wholesaling basically acting as a realtor?

ok so lets say the house is just vacant with no forsale signs, the owner is interested in selling. Now I guess at this point I would politely ask if I can check the house out, noting down everything that may need work. Then I would check out comps in the area as for what this house would go for in tip top condition. I would factor that into my offer. So say houses in the area in tip top shape go for 150k, needs about 20k in repairs, I think most investors go for around 70% LTV? so if the house is ultimately worth 150k, brings the offer down to 105,000, minus 20k in repairs, 85,000 so say I as the wholesaler want to make 10k off of this deal, I would offer 75k and if the home owner doesnt bite or isnt interested in my offer I guess no contract is made and I move onto the next?

so say the homeowner is satisfied with a 75,000 offer, may simply pay the house off who knows, I sit down and make a contract, what do I say? its like hey sir im going to sell your house to someone else and make money off of it, arent I a genius? What is a good pitch line here? I work with many investors that are interested in your property?

So I get the house under contract, in the contract if I dont close in say 2 weeks the house is no longer granted to me, meaning he can sell it to someone else. So under contract they have no right to sell the home to someone other then me correct? What if they do? lawsuit?

So they sign the contract, I sign the contract, with the 75,000 asking price with the assignment clause near my signature, then I head over to a title company where I tell them i will present an assignment contract and a buyer contract? I need work on the contracts because I havent made one up yet.. Would like more info on this process.

For instance say I find a buyer for 85k, I show them the house they are satisfied, hopefully without the homeowner present because I really dont want the investor to know how much I am making. I guess it doesnt matter since I am under contract to buy the house within a certain amount of time but it still just feels weird.

So the investor likes what he sees, where do I go from here? The funds, where do they go? I know we have to go to the title company, where what goes on? Do they look up the house to see if the title is clean with no lean on the property, back taxes etc? Then what? Who wires money? Homeowner doesnt have to be present at this time correct? Do I even have to be present? Can most of this be handled through fax?

thanks again

sean