Wholesaling Q's

Wholesaling
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Wholesaling Q's

Bryan P.
Member since 2010 · 136 posts · 3 votes

I'm hoping somebody could clarify these questions that I have about wholesaling:

1.) How do you explain to the seller what you're trying to do? You are virtually asking the seller to give control over to you in order for you to find a quick buyer. That's risky, on the seller's part, so I'm wondering how you go about this "conversation."

2.) If you are dealing with a property that is NOT an investment property and more than likely cannot be bought with cash, how does this work? If a mortgage company or local bank is financing the transaction, what is the normal seasoning period? If the seasoning period is MONTHS, then how can you wholesale in this situation? It doesn't seem viable.

3.) Wholesaling "Get Rich Quick" videos and how-to tutorials make it seem easy. I would think that advertising, marketing, and paperwork would take MANY hours. I have no idea though. Somehow there has a be a catch to that.

-Bryan

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  • Jimmy C.
    Flipper/Rehabber · Seminole, FL · Member since 2010 · 859 posts · 316 votes
    15y

    Its not easy at all. Being a Realtor is way easier probably.

    Your buyers are not using any conventional lenders. You are looking for cash buyers. Dont waste your time trying to work with financed buyers.

    If they are financed at all - it has to be through a hard money lender (private lender, whatever you call it).

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  • Matthew J. T.
    Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
    15y

    good questions, man. I am fairly new too at this wholesaling. I have just been reading constantly and constantly, and making notes in my note pad, and reading , and posting here, use the internet it is your friend, take it one step at a time.

    I have been wondering the same thing too about question 1 you asked. Infact, I've been making calls to people off of craigslist, and they say they wanna sell there property, yeah yeah.. they ask me what I do. I tell them I buy houses, and if I can't i find a buyer, it's really hard to tell a seller what you are doing, the guy just kept asking and asking "SOOOOOOO i'm still confused, what is it that you actually do.." "Well I am a buyer", well what happens comes closing when they find out you aren't the actual buyer ? Well I guess it dont matter since everybody got paid, it's the "talking to them" part that I am trying to get good at.

    Wholesalers don't "buy" houses like they claim, so when people question what it is you are doing, you better make them believe you are really buying there house lol, if you are working with someone that just wants to get rid of it I guess they shouldn't care...... but if anyone can help that I would like to know too.

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  • Bryan P.
    OP
    Member since 2010 · 136 posts · 3 votes
    15y

    Yeah, they are easy questions but I hope to get them answered.

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  • Matthew J. T.
    Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
    15y

    I thought about it, and for the first one I would just say if they as what it is I do, I'll just tell them that we buy houses all over the area, if they ask "who is WE" just tell them that you work with a team of people that deal with cash transactions, and buy properties. That's how I would deal with it i guess, because if you throw that you work with a "TEAM" of individuals, but you are not an agent, you aren't making yourself seem like the only buyer, make it seem like you are working with them to resolve there problem, and you will help them get that property sold.

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  • Jason GrotePro Member
    Developer · Austin, TX · Member since 2011 · 287 posts · 88 votes
    15y

    I personally wouldn't go there with the sellers... If you know what the wholesale market will bear, then you get it under contract with the agreement to "re-assign" the contract. When you close on the property, the wholesaler you sold it to gets the property at the price you negotiated with him and you get a "re-assignment" fee or your commission, and the seller gets what you offered!

    Podcast Guest on Show #27
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  • Bryan P.
    OP
    Member since 2010 · 136 posts · 3 votes
    15y

    How do you get the property "under contract?" What constitutes under contract? Explain in dummy terms, please.

    Do you create the contract with the exit clause within it? Explain the contract.

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