How To Get a Wholesale Deal Under Contract

[Christian Walker]

Ive been searching for an answer to this question forever and can't find it anywhere. So after I find a property, how do I get the owner to willingly put his property under contract with me? Even though I don't have money to buy their house or an investor to pitch it to yet. If someone could please make this process more clear to me I would greatly appreciate it! 

[Jerryll Noorden]

You tell them: 

"Yo mami, there are many kind of investors out there. From buy and hold to flippers and anything in between. Flippers make different offers than a buy and hold would. A flipper would remove walls make it an open floor plan new cabinets granite, refinish the floors, paint, etc. etc, but a buy and hold would just do a carpet clean and put a tenant in there. We can make you an offer in cash but we would make an offer based on us flipping the house... OR... you can let us try to wholesale it and there is a good chance the offer would be higher because a buy and hold investor is not going to have such high expenses to repair the house. 

Now if you let us wholesale it we will put the house under contract for just 4 days. If it is a good deal we will know within 48 hours the deal will close because there will be a bunch of buyers interested. 

If no one replies we know the price we chose is not good and you can tear the contract up. If it IS a good deal and we have 4 to 7 buyers interested we can THEN extend the contract for 2 weeks while we get the procedure to close started."

Now which seller would say no to a much higher offer only having to have the house under contract for 4 days? If nothing comes from this no one will be pissed because we explain all the expectations. They always rather us wholesale.

See the way wholesaling works, is that you should wholesale either Buy & Hold properties to buy and hold investors, OR wholesale deals that have so much meat left on the bone it makes sense to still be able to assign the contract to a flipper that they still have sufficient profit left.

In other words you NEED to identify if that deal is a B&H deal or a flip deal.

What most people do is they just get a contract signed for the lowest amount the seller is willing to accept, and they just try to wholesale it. They do zero analysis whether it is a flip deal or a B&H deal.

A flip deal the Cost Of Repairs is MUCH higher than a B&H deal.

You have to be strategic!