Many of you are real estate wholesalers and have buyers and sellers that you do deals with. You have databases of buyers and do direct mail to get sellers. One of the biggest challenges of a real estate wholesaler is marketing costs. Access The Flock Real Estate Marketplace can help subsidize your marketing efforts by allow you to access buyers and sellers in the marketplace when you are flipping contracts.
For less experienced real estate wholesalers I’ve prepared a slide presentation on the steps; I find it’s good to have a visual reference to go back to when you are training someone or are in the middle of a deal and want to know what you should do next to get to closing and collecting all of your money. This can also be used if you are more experienced - so don’t worry!
Step By Step Wholesaling Real Estate Deals Presentation
There are a lot more steps when wholesaling a real estate deal than initially thought. You’d think that there would be just find a buyer and seller and make a spread and collect your fee. But - if you look at the details - it shows when to collect payment and when to pay and get contracts signed - when to turn marketing on and off. I think it’s good to have your marketing turned on all of the time if you are doing this full time because you never know when your buyers or sellers will get matched up and the more of them that you have the easier it is for you to do the deal. The other details are important as well.
Make sure to include “and/or assignee” in the purchase contract after you found a seller from direct mail or on Access The Flock - if you already have a buyer - because this allows you to sell the contract to the end buyer at a premium or markup for your services of finding such a great below market value deal. These deals are typically foreclosures or properties that are under stress and need rehab. The end buyer could be a rehabber, as an example.
Some websites recommending a $10 deposit to the seller but I think that you could have troubles with this. Some wholesalers that I had lunch with recommend a few thousand - like $4 grand - when he collects deposits from serious buyers. So you actually do need money when wholesaling real estate.
Then, you need to find a buyer - or list the seller on Access The Flock and hope that you get matched up with a buyer. Besides Access The Flock Real Estate Marketplace you can try newspaper ads. When you met you buyer start negotiating an assignment fee that you get to keep. Sign the contract - selling the contract to the buyer. Collect a few grand - like $2 grand - in deposit money before taking the deal to close with the title company, where you collect the rest of your assignment fee.
Please let me know in the comments below how much you pay and collect for a deposit to the seller and from the buyer.