Wholesale Process Question

[Kevin Reinell]

Hey BP,

I had a few process questions about wholesaling. I am wondering once you have property under contract at a discount from the seller, how long do you have usually to then turn around and find your cash buyer to assign the contract to? Is it usually whatever the inspection period is? If so, what happens if I can’t find a cash buyer within the inspection period? Would you just extend the period or cancel the contract? How long typically is the inspection period that wholesalers use? Are wholesalers typically transparent with seller that they plan to assign the contract to another buyer?

Sorry for all of the questions at once, just wanted to clarify how it unfolds after getting contract with seller. Appreciate any of the insight into this! Thanks!

[Anthony Davis]

Hey Kevin,

Think of yourself as the facilitator in the transaction. The period/terms are whatever you can get the owners to agree to. If you do not find a buyer, the contract date can be marked through, then extended with your initials and owners initials. Periods can be 7, 14, 30, or more days, but your goal should be to close as soon as possible with an end-buyer. A fast closing without repairs is usually a ‘feature’, or attraction in a wholesaling transaction.

Yes, you always want to be transparent with the sellers by putting ‘and/or assigns’, or and/or assignee’ after your name, or your entity’s name on the purchase agreement. Just mention that you are doing this, because you may want to bring in a money partner with you....or you’re thinking of bringing in a money partner, especially if you’re not using a transactional money partner.

I’m confident that you can find a buyer in a local Facebook group of investors, and/or in your local reia.

I won’t say good luck this time, because I know you’re going to create luck by being a great facilitator.

Hope this helps,

Anthony Davis

Charlotte, NC