Never owning the property is the key to successful wholesaling. “How do you do wholesale real estate?”
The first step is finding a property that has sufficient equity. Try to find a property still owned by the homeowner and get it under contract.
Where do you find the panic sellers for wholesale real estate?
Wholesaling Real Estate
You will learn more by attending the Wholesale Apprenticeship by
World Wealth Builders and Professional Real Estate Investors Group (PREIG) Canada.
Let’s say you found a deal worth $600,000 for $450,000.00 and put it under contract.
Give a small deposit (we typically offer a$10.00 deposit) to secure the property and get to work.
Work it out so you have 10- 30 days to do due diligence and assignment. In the meantime, compile and prepare all the information required for the professional Real Estate Investors.
What do you need to have in a package for wholesale real estate:
- Non circumventing non-disclosure agreement
- Assignment form
- Letter of direction to the Seller and lawyers
- Comparative Market analysis (CMA)
- Assessment Value
- Copy of the listing, if available
- Owner financing, if negotiated
- And a lot more
You must put an assignment clause to protect you from any further liability in case the deals fall apart. You will learn the trade secrets by attending Wholesale Apprenticeship by World Wealth builders and
Professional Real Estate Investors Group (PREIG) Canada.
The four Main steps for wholesale real estate
- Find the Deal far below Market value
- Evaluate it professionally
- Secure the deal with assignment clause
- Assign the Deal without any liability
Where do find Buyers for a wholesale real estate?
Run an ad in the “houses for sale” section of the paper as well as on the forum of Professional Real Estate Investors Group (PREIG) Canada. Use key words like “handy”, “investor special”, “needs work”,
“distressed”, and “must sell” and “assignment”.
You can get hundreds of inquiries from all kind of Real Estate professionals and investors. Be sure to get the name and number of each caller so that you can call them with your next house as well. If the house is a good deal with plenty of equity, one of these buyers will want it.
When you have a qualified buyer… what next?
Assign your contract to the new buyer, who in turn closes in your place. It breaks down like this — You placed the property under contract with proper assignment clause for $450,000. You found a buyer and assigned your contract to them for $465,000.
The new buyer assignee then comes to closing and buys the house.
The original homeowner receives his $450,000 and you receive
your $15,000 assignment fee. You just made $15,000 and all you invested was $10.00 for a deposit and sometime answering the phone. Your buyer may rehabs it and sells it for $600,000. Everyone is happy.
No matter which path you take it’s a win/win for everyone!
If you are just getting into real estate, need to make some extra money, want a business you can do part time – then wholesaling houses is a great way for you to get into this very lucrative business.
This business doesn’t require money or credit because you are not buying properties. You are simply putting a good deal under contract and then assigning that contract to the new investor or landlord that wants to buy it. With this arrangement, you would receive a fee for finding the property also called an assignment fee.
You may be asking yourself why investors would pay you a fee for finding them wholesale real estate
Well, think about it this way, there are a lot of Real Estate investors who may not be able to find far below market value deals.
They don’t have the training and coaching on how to do wholesaling.
They are happy to buy it below market value from you.
You are not even selling a property; you are simply selling the contract you have with the seller. This is why wholesaling houses is also called; “No Money Down” deals.
Your success is our Passion!