All Forum Posts by: Chris Piper

@Marshall Hawley I have to agree with @Wayne Brooks. It sounds like you don't fully understand the wholesale process based on how you are planning to use the forms you mentioned.

You only need two forms to wholesale: 1. An actual purchase agreement between you and the seller only. 2. An assignment agreement between you and the cash buyer/investor only. That's it.

I have uploaded both forms here in the Files section, but I would recommend brushing up on your knowledge of the whole process first before you make any huge mistakes. Check out Jerry Norton's "The Wholesaler's Bible." Just Google it. It's free to download the PDF. That will get you more prepared before you are ready to get started. I think there is a post on here called "The essential guide to wholesaling" or something like that. Might want to check that out too.

You're welcome @Scott Autenreith

The seller will almost always bring it up, but if they don't, just put it in the purchase agreement when you submit it to them. I'd say $100 is reasonable. You could go as low as say $20, but it will all depend on how motivated the seller is on whether they will accept such a tiny earnest money deposit or not. You do need to have an equitable interest in the property, and no earnest money will probably not show anyone that you have an equitable interest in that property.

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@Darvin Ezell It's up to you what you tell the seller. If you want to act like you are buying and closing yourself, you can, if you want to tell them you're a wholesaler you can do that too. I would suggest saying you're an investor and that's it. If they ask more about your plans, tell them I may rehab it, I may resell it, etc. I wouldn't directly tell them you are just a middleman looking to profit of of their need to sell.

When you wholesale a deal, you need two documents:

1. Purchase agreement

2. Assignment Agreement

You sign the purchase agreement with the seller for whatever amount you both agree on. Then, you add on your profit to that amount, and sign the assignment agreement with a cash buyer/investor for that agreed upon amount. Always make sure your purchase agreement says "Assignable." If not, the seller may back out or sue if you try to assign it, or you may end up having to do a double close which will cost you an extra couple thousand you might not have planned on and cut your profits down.

You should always typically have 30 days to close. Once you get a property under contract, start marketing to get it sold to cash buyers only asap. If after 1 week, no buyers, then drop your price. If no buyers after the second week with the price drop, start contacting every wholesaler in your area and see if they have a cash buyer interested, and JV with them and split the profits. Also, the buyer will know how much time they have to close when they see the purchase agreement after they sign the assignment agreement. And, it doesn't really matter because they should have cash to close anytime.

Earnest money only on any property once you get it under contract, and ONLY pay that to the title company, not directly to the seller, and get a receipt. Earnest money is negotiable between you and the seller. I personally never put up a crazy amount like some sellers want like $3,000 or $4,000. I'll walk away from a deal if the seller wants a big EMD from me. Plenty of deals out there.

@John Foster I agree with @Pratik P.. If you are an investor and are looking at a property, what things would you need to know about it to know if it's a good deal? Well, you need to know the same things about a property presented to you by a wholesaler. Get all the info you need from them, do a walkthrough and ALWAYS check their numbers to make sure they are accurate, mainly the comps and the rehab costs. Wholesalers are notorious for not presenting accurate numbers, which is why they cant ever get a deal done. The key to being a successful wholesaler is ACCURACY.

@Emerson Harbert You need to decide if you are getting a property under contract to hold or wholesale. If you want to hold, you can use hard money or a private investor to fund it, if you want to assign it, then you don't need funding. Just figure out in advance what your exit strategy is for each property and proceed accordingly. Hard money is pretty easy to get, but it can be a little expensive. If you are new to real estate, I would focus on wholesaling only and forget buy and holds for now until you get you feet wet. 

At the top of this page, you can get a purchase agreement and an assignment agreement I uploaded. Go to: Tools>FilePlace>Contracts>Purchase Agreement & Assignment Agreement

Top of this page: Tools>FilePlace>Contracts>Assignment Agrrement & Purchase Agreement

8 1/2" X 11" is the standard, just like a piece of printer paper.

@Doug Price I think you're missing the main point here. Being a wholesaler means you posess the ability to find and negotiate "OFF MARKET" deals that no one else can find. That is the value in being a wholesaler. There are most likely several people in your market who gain access to pre-listed deals before they hit the MLS, so it wouldn't give you any advantage to get them ahead of time. Plus the other people who are getting those deals ahead of time have fat pockets and can close with cash. Stick to finding off market deals, unless you're looking for REO's in the MLS. Also, use a double close if needed and you will have POF letters so that you can always close and have funding in advance, and the agency will have nothing to worry about.