Total Beginner That Wants To Do Wholesaling
Hi, I would like to do real estate as what I do for a living and I want to get started in wholesaleing. Assuming that I have less than $5,000, and no credit (not bad credit), what should I do to get started? I live in the Balt-Wash corridor, so cheap property is hard to come by.
I would reccomend continued reading on this site and getting more books on the subject of flipping properties. You do not need much money to make money at wholesaling.
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Wholesaling to me is getting a property under contract for a good deal, then assigning that contract to someone else for an assignment fee. I liked Ron Legrands quick turn millionaire book, but I did read it when I was pretty new.
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What financing techniques are best for a flip property? Should I do a wrap-around mortgage? I know most real estate vocab from various educational experiences.
A good way to get started is to build a list of investors that will buy quick, some investors can purchase with all cash.
Try to locate empty houses that would be worth rehabbing and get it under contract from the owners, bank or whoever owns it. This will require some reasearch on your part.
Get the property under contract, To make the contract binding, you have to leave a deposit with the at the time of signing. Try giving $50
Put your name and the words “and/or assigns” on the contract. This will allow you to assign the contract to the investor.
Contact your investors.... You know the role; buy low and sell high.
You might be surprised how many empty houses you can find from just driving around for a few hours.
Hope this helps,
Harlacan
How much should you give in EMD? That is the same as getting it under contract?
I am new to this as well. My question - How do you put a contract on a house that the bank owns without putting any money down? And, if you are able to do this, will the bank give you 60+ days to find a buyer?
I think the best way to go is find a ugly duckling in a good neighborhood in need of some major repairs. Buy it at 50-55% of ARV. Get a 65-75% LTV based on ARV. Put some money into the deal and keep your rehab expenses such that you cna make $10K or $15K by reselling it. You have to factor in your HML interest payments and commissions. These are hard to find, no assigning contracts and running around trying to find a person to buy it from you.
Help understanding the process. To wholesale all I need is to:
1) Negotiate on a property below FMV
2) Put a contract on it with a contingency on securing
financing
3) Leave a small deposit
4) Start title work
5) Start advertising looking for a buyer
6) Assign property for assignment fee
7) Go to closing.
Is it this cut and dry or is there something I am missing? I really want to get started but with no money and good fair credit, where do I start? Any advice would be greatly appreciated.