I Have A Question about how to work it on the contract, to be able to show the property

Confused

Are you asking at what point is it ok to show a potential investor a property you've found???

Yes, once I have the property on contract how do I show the property to my end buyer on an assigment.

max

Call the seller and say you want to come over so your "contractor" can assess the repairs. Make sure you tell your "contractor" (your buyer) that he is the contractor that is giving you a bid, make sure he knows this. So he doesn't say anything about him buying it and mentioning a price in front of your seller...

Do this with all your buyers that need to actually go see it. If they don't need to see it, just email them pics ( a lot of pics, every room, outside...ect)

D

I will definetly do that. I will let you know how it goes. I don't want to sound pesimistic, what about if the seller wants to accompany you to evaluate the repairs.

max

he can be there....just make sure your buyer knows he is the contractor!!

and p.s nothing needs to be added to your contract. You have it locked up, you can market the heck out of it to your buyers. And if one wants to and see it, MAKE SURE he knows he is your contractor....and don't ever show it to a buyer unless you already have it locked up! good luck

D

That give me the confidence I needed on that. Can I ask you another question since you being so kind to answer the other. I posted but have not gotten any replies. Matt said he uses a Lawyer for his assigments, I noticed here that some people uses Title Companies. Can you give your input on that.

max

depends on your state. Some use title, and some use lawyer...some use both. My state is a lawyer state. Find out what your state uses. If they use both, then use which ever you feel more comfortable with. And make sure which ever you use, that they know how to do an assignment!

im sorry im not comfortable with a little lie ! as well is why would my buyer buy into that scenario anyway ( contractor stuff) there is surely many other approaches to showing the property- can you give us some more approaches on to showing the property - maybe when the seller isnt at home - would be best you think ! roke

I appreciate your input. The main reason I asked is that I talked to two title companies, one new what it was, but does not doit. The other did not know what I was talking about.

max

When I get a contract on a house everything is straight forward honest. The seller knows I am contracting the house for 90 days...he knows it is for me to sell to one of my cash investors...he knows I need a key and the freedom to take my investors in as needed.....he knows that if I don't sell it the house goes back to him after the 90 days...I never put any earnest money down at all. The seller signs a form stating that they know and agree what I am making on the deal. They never have a problem and so far I have never had one to be there when I am showing the property.

The seller knows I have hundreds of cash buyers and I know who is buying in their area so that alone is worth me taking on their property for 3 months. I have only had one that would not sell within the 3 months and it was a weird floor plan.

For all the good input. I am so ready to do this, but I am stuck on to things. Coming up with a good contract to use and finding a Title Company that handles Assigments. Maybe they call it something else. I need to find out that.

max

I find the man thing that title companys are concerned about is disclosure. They want the seller and the end buyer to know that you are making $$$ on the whosale deal. I just use the invoice sheet and get the seller, myself and end buyer to all sign it showing my profit on the deal. They are happy and feel safer if they see everyone agrees and have no problem with you being paid.

That is very clear to me. I will do that. Do you use a regular receipt book, or u use a particular for that.

{PS. General Colin Powel was the forces commander when I was at the guld in 1991-91. Great leader for our country.

max

If you look on page 162 of Profit From Real Estate Now...that is the form you need.

When you go to contract a house always have 3 documents with you that the seller will sign.

You can see these in Profit From Real Estate Now

1. Page 155 Investor Disclosure Statement and Sellers Acknowledgement.
2. Purchase and Sale contract
3. The invoice which is on page 162

Get one of those .30 folders that has 2 pockets and put all 3 of these in the folder. Know the forms well before you go over them with the seller. Don't stutter through them....know them well.

Try to get your comps of all sales in the neighborhood. I just tell my realtor to print me a sheet showing every sale that happened in that area for the past year. This is tool for you so you can show the seller why you can only offer XXX amount of money. I highlight the houses that are similar. If there are 4 houses that compare average them out and that gives you a pallpark figure of what you should offer.

If they say they will let you contract the house then tell them all you need for them to do is authorize the papers. Don't say the word contract because that word scares people...even though they do know it is a contract. When you tell them you just need for them to authorize the paperwork it gives them a feeling of being in control somewhat.

http://www.comanchecounty.us/main/index.php?option=com_content&view=arti...

I believe this is your tax assessors web site where you can search for owners of properties.
When you log in go to the link that says: I Want To... then go down the drop down menu to Search Land Records.

That way when you find a vacant property you can go there and enter the road name and choose the right address when all the properties pop up on the list.

When you find an owners name then look them up in the telephone book...if they aren't there then call information...if they aren't there then call the water company and see if they have the owners information on file...if all else fails then send them a letter telling them your intent.

P.S. sometimes you can find many owners on Face Book or Twitter.

I thank you so much for all your help. You have been so kind to me and my family, who is the ones I want to do this. I am just trying to set up my system, so I can start to make much needed money. Eventhough the growth I have done during the last six months is being tremendous. I have the last question for the night. You mentioned your Agent, is she/her involved on your transactions at all, liked finding you deals. If you do, how do you pay her/him.

Again,

Thank you for all your magnificent help.

max

I have searched for 2 years for a realtor who understands wholesaling. I have a realtor friend who simply only provides my comps for each neighborhood.

Last week I finally found a young lady who is a million dollar a year producer AND she also understands wholesaling and wants me to further teach her wholesaling. She and I plan on doing lots of deals. She is an investors who owns properties and when she sells she shows the buyer how to get cash back on the deal.

I think I have a good one this time. All the others didn't want to work that hard or kinda just fizzled out. I just decided to work my business with just me, my husband and our son Brandon. Now we have a new member...our realtor who understand wholesaling. It should be good!

I found this on a post....this is Al Christman explaining to someone how the realtor gets her money on a deal that is wholesaled......

"The listing agent has an agreement with the seller for a portion of the sale price. The wholesaler writes a contract to purchase from the seller. The contract is written, giving the wholesaler the option to assign. When the wholesaler assigns the contract to another buyer, paperwork is included in the assignment package to sell to the end buyer for a higher price. The escrow company will close the sale using all the written instructions of the listing agreement, the original contract and the assignment contract. Yhe end buyer supplies the necessary funds to purchase the property as agreed on. The seller gets the funds that were agreed upon in the original contract. From those funds, the seller pays the commission to the agents, as agreed upon in the listing contract. A check is written to the wholesaler for the differance between the original contract and the assignment contract."

This is a great post I am just getting ready to get my first property under contract and this answered allot of my questions.Thanks and best of luck to everyone!!

Glad you found some helpful information here.

Another thing...when you get these houses under contract start imediatly by getting your yellow pages and calling down the list of home remodelers, contractors, plumbers, electricians and any one associated with home repairs. Put flier all over town with a pic of the house and the price right under the picture...then put all the data and be sure to put your phone number, email and web site.
When you are calling people out of the yellow pages and the secretary answers tell them you need to speak to the owner..."he is not here right now may I help you?" Well maybe...I heard that someone at your place may buy investment properties and I have a great deal on a investment property for only XXXX dollars.
She will usually say that she will send you to his voice mail or take the message.
Keep a notebook on who you called...who you talked to...what was said...name of person who will be calling you back...get email if you can....and write down the date you spoke. When the person calls back find out what company he is with so you can keep track. Find out what he buys and where and how many he needs to buy this year. Write everything down.

You will have talked to a hundred or more people before the day is over.
When you get an investor on the phone be ready for them to talk and talk. They love to talk about their investments and how they obtained them...how great the tenants are etc...you have to have a good talking personality and be friendly.

I thank you so much for all your input. I stayed up all night putting my business plan together and you have make it a lot easier to put my docs in order and what to use. I still have a question about the Receipt to get pay. Can I get it on this website. I have look but can't find it.

Thanks again and God bless you.

max

If the title company needs to disclose to the seller that there is an end buyer anyways, and that there is a profit, why do you need to lie and say he's the contractor? I wouldn't feel comfortable really asking a buyer to say he's a contractor, it would make me feel very dishonest and like I am trying to fool the seller. I think it will also come across as unethical. Is this just an over concern on my part?

I find out from another poster, that I just have to be honest with seller and disclose that you are making a profit on the deal.

max

Hi Max
I looked everywhere too trying to find it but no luck...so I created my own by looking at Deans in the book.
Sissy

Tammy
I always am straight forward honest with everyone on the deals I do. I am a christian and have to be honest. I tell the seller that I am going to try my best to sell their property and I have pretty good odds. If I don't sell within the 90 days on the contract then the property reverts back to them. I tell them I will be bringing buyers through. I tell the seller how much I am going to make on the deal...I tell the buyer how much I am making on the deal. They both sign the invoice stating that they understand I will be making XXX on the deal and they agree. The title company also requires everything to be disclosed. To me honest is always the best policy and you will last longer in this business being honest.
Sissy

Put this in your Purchase and sale contract to let seller know you will show the property for resale.

Seller to provide buyer with permission to access property solely for purposes such as evaluation of repairs needed, appraisal of said property for securing financing, and professional advisement on resell of property. If property is vacant, Seller shall provide Buyer with a key to access property specifically for the reasons above.

This will show transparency in the contract.

whurndon
H&H PROPERTY SOLUTIONS LLC

That what I was planing to do. Since I have not find it either.

max

For the input. Its this working for you. I will use that clause too. Its a very good one.

Thanks
max