Five steps to wholesaling

it was as simple as 5 steps...

Val

What happens on step 5 if you are wholesaling an REO?

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

In answer to Michael Mangham, you would need to have an LLC for the property and sell that. Yes, this would be a more complicated process done with an REO. Just plan e that was quite funny!!

Double Close using transactional funds. Do a dry double close, Purchase in an LLC or trust and sell the ownership of the LLC or Trust. Have the buyer replace you on the original contract. All will work if their are no seasoning issues and you have the right title company or attorney in place.
I am sure there are several more ways I did not mention because I have not actually done it that way yet.

Don't forget how to get an REO or short sale under contract in order to wholesale it. Not like dealing directly with a motivated homeowner/seller.

Oh, then there is the part about actually knowing the ARV on the subject property and the rehab/remodel needed to bring the ARV and the cost of said rehab. Then get it under contract for a price that a real buyer will take it at including your fee!

Watch out Eric, with your help I might do some deals in N.M.!!

Lets all make 5 offers today!!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

hope you don't mind Tammy... but I wanted to be able to read 'step 5' that Michael is referring to while reading his post

Wholesaling

Wholesaling is a rather easy concept to master. I will break it down into five easy steps.
1) Market for a motivated seller. You must find sellers who need to sell their homes yesterday and you can do that by marketing to them. Use Bandit signs, internet marketing, such as, advertising on Craigslist, and the many other online sites I've listed here. Knock on doors, direct mail, and calling FSBO is also another way to find motivated sellers.
2) Negotiate a Deal. You want to offer an amount that is attractive enough to the seller and yet turn you a profit, or to provide an attractive deal to your end buyer.
3) Put the Property under contract. Once the property is under contract you have an interest in the property, and can begin to market the property to your buyers.
4) Market to your buyers. Again you will market to buyers in the same manner as you would for a seller. Rei clubs and other word of mouth marketing is always good to let people know you have great properties. Business cards should also go out to find your buyers, as well as, sellers.
5) Assign your Purchase contract to your end buyer and collect a deposit. You can now be paid by the end buyer.