All Forum Posts by: Sean Brooks

@Ryan Billingsley  Sorry many i've been super busy but am here to catch up and help you.

What contract do you have signed with you end cash buyer???

It sounds like you have a purchase and sale agreement? 

Or did you have then sign an assignment of contract?

If you had them sign a P&S, you will probably be looking at doing double closing...

Which means you may have to come up with some transactional funds... aka, you may have to get the original amount you agreed to buy the place for... AKA if you contracted it at 23K (i cant remember i didnt read up through the post and find out) you would have to actually come up with that money, for about 24 hours. You would close the front end of the deal, then the next day (or same day) your end buyer would close at the higher price.

Does this make sense!?

@Ryan Billingsley Sweet update me when you can!

@Ryan Billingsley 

Awesome! You can see if you can get him to bite at 28k. Let him know that you are willing to come down to 28k but that is your bottom dollar cash price.

How quickly did he say he could close at 27k?

Honestly if it were me, and someone offered me 27k, and can close asap, and that would net me 6500, I would take that offer.

Thats a solid profit and a great return on your TIME. 

We don't want to nickel and dime him and piss him off and lose him. Yes it's still early in your contract, but this is a good deal for him, AND a good deal for you!

Plus, if he is a cash buyer who buys properties a lot, this could be the beginning of a long lasting relationship, where you could flip him many deals over time. So it may be in your best interest, in the long term, to take the 27K?

As a wholesaler, you want repeat business from your buyers! 

Thoughts?

@Ryan Billingsley This sounds like a great deal.

I would give him a counter offer, and with it, instill some sense of urgency and let him know that you are not as motivated as all the other motivated investor out there scrambling to find a good deal.

Let him know that there are other investors that are coming to make offers this week.

Find out what his highest and best offer is, and see how quickly he can close.

$6500 is certainly a good profit, and so is $12,000!

Just remember not to get greedy! If you get a solid cash offer that can close quickly, I would recommend you take it

@Nathan Thorne You prevent your end buyers from going around you by putting the house under contract with the seller.

If you are simply finding what you believe to be good deals and are taking those deals to an investor to see what they think, then you are acting more like a "bird dog" not a wholesaler. 

Which isn't a bad thing as you begin to learn, you just make a lot less money. For bringing investors leads, you can make around $500 a deal... By bringing investors a DEAL that you have already found, negotiated, and locked up under contract, then you can make a LOT more money because you have done A LOT more work.

Hope this helps!

@Ryan Billingsley That's awesome news! 

Have you made a counter offer to him?

Is this property going to be a flip for the end buyer or a rental? (as wholesalers we need to know this)

What is your target profit?

And what is the profit you would make if you accepted his offer?

As a wholesaler, we can sometimes trade off profit, for speed, ease, and certainty of transaction!

P.S. If the buyer isn't a cash buyer, it is WAY more difficult to pull of that sort of transaction as a wholesaler. Definitely possible, but not ideal. Especially starting out. IMHO

@Sheena Prattis Let me answer your questions specifically... YES YOU CAN.

The park never even has to know about your agreement with the seller.

I create an Option Contract or a Bill of Sale with the seller which lays out all the terms of the deal. Typically I put very little down, I mean literally next to nothing (sometimes nothing but shush don't tell ;-).

They key is to get them to agree on 2 things. 

1. Amount of days before you have to close

2. ACCESS TO THE PROPERTY!

**You also want to have a liquidated damages clause in the contract too, this way, if you market the home for 2 months and can't find a buyer, chances are, you didn't get a good deal, or you don't know how to market. Either way, you can back out of the deal and the sellers will keep your deposit.

The key is in the negotiation. I tell my sellers I will need access to the property to show some of my partners, clients, contractors... i.e. basically anyone I think needs to see the property in order for me to close the deal.

So once they agree to that, BOOM! You are golden.

THEN, market your butt off to find a buyer. If 10 people want to see the house, you basically treat it like an open house.

Schedule ONE time for all them to show up to. Make sure to get there early and get your sellers out.

Then you accept an offer. And now the END BUYER, goes to deal with the park and getting approved and what not so you can make sure the deal closes out and everyone gets paid and every one is HAPPY HAPPY HAPPY.

@Danny Benavides You most certainly can wholesale mobile homes! I've done a ton of em.

And the greatest thing of all... If you are wholesaling a mobile home on leased land (or in a park) you don't have to close through an attorney, which means, we get paid instantly.

And yes @Gerald Harris they make incredible cash flow properties!

@Ryan Billingsley 

 First of all....CONGRATS! You are like now in the top 20% just for taking action.

Is your buyer definitely a cash buyer? How confident are you that they will close the deal?

There are multiple ways you can get paid. And since you have never worked with this cash buyer before, you want to make sure they actually have the cash and can close.

Ideally you want to do the "assignment of contract" with them.

However, there is a very good chance that they may not even know what that is. And it could potentially scare them away.

If you haven't had them sign anything yet, you may want to set an appointment with your title company or attorney and have the buyers come in to their office to fill out the paperwork. This way, the buyers feel super comfortable and if there are any questions, they will get answered and there shouldn't be any problems.

Getting paid: So up above I talked about making sure these people can close... because the last thing we want, is for them to tie up this property from you, and after "x" amount of days, they end up not closing! You may lose the deal (and the $$) depending on your timeline. 

SO, I would put in your assignment contract that their fee is non-refundable. Or at least a portion of it. This way, if they back out, at no fault of yours, you still get compensated for the deal!

Hope that helps man!

@Nat C. You pose a great question. And you have gotten some good answers from the members.

Your local REIA is definitely a good place to start. Take your time and do your research. Ask for recommendations from people you trust.

You really have 2 routes to go.

1. Find someone willing to "take you under their wing" for free in exchange for work

2. Pay someone

Option #1 is certainly a great option. May be a little bit tougher to find someone to truly pull back all their curtains in their business in exchange for free work/bird dogging. I have done this with some of my students and it never seemed to work out great. They didn't have skin in the game and I couldn't force them to work harder and longer. I had to let them go, and with them went the knowledge I gave them. It wasn't really a win/win. 

Option #2: There are a ton of coaches/mentors/consultants out there today! It's over whelming. My advice here is to do your due diligence heavily. Speak to real live people who have gone through their programs. Find someone whose program, and cost, makes sense for you. There are a ton of great programs out there, and I would make sure to research them extensively to make sure they are a good fit for you. OH, and make sure they are still actively investing ;-)

Hope this helps!