First Wholesaling Deal - Need Advice

I just got a house under contract that Im looking to wholesale. Already bought 3 houses ( 2 SF that Im 95% done rehabing + 1 duplex which is already rented) so far this year and running out of funds to rehab this fourth deal which is a duplex.

This duplex I want to wholesale is sitting on a double lot ( potential extra building lot). The house sold after only one day on the market but the first buyer got cold feet and I got it.

My question is how do I advertise the house? Can I list it back on the MLS ( I didnt tell the selling agent-who is also my agent what my intentions are).

Also, if i do a double closing, does it means that i have to pay all the closing cost, etc… from my lender? it seem to me that’s too much money to pay for just one day. Does anyone have another alternative?

Thanks for your input

I wouldnt get into a double closing with this. I do wholesale deals all the time. What i do is assignments. You need to find another solid rehabber who uses either cash or hard money.. then you write up and assignment and have it notarized. after this you dont do anyting except wait for your check.

hey guys,

Well there are a few different ways to do it. I put properties under contract for x amount of dollars. Then i sell for Z.

here is an example of my typical assignment.

get property under contract for 100k. I know that the property is worth 195k after about 10-15k in repairs. I then “sell” the property for 120k. I then tell the buyers (rehabbers) that i want to assign it because i would rather not double close and its easier for the both of us. They agree. I then draw up an “assignment of contact” for 15k (because they talked me down 5k). This way they do not care because you set up a price and they are accepting to buy at that price. A good rehabber doesnt care what you are making as long as it fits his criteria and he knows what he has to get it for.

As far as finding them…I have found that they come a dime a dozen. Go to the CTREIA meetings and meet people. I found one near me that rehabs about 30 properties a year and will buy anyitng i put in front of him. I actually did an assignment with him a couple of months ago where he didnt even go into the house. He had his wife drive by it and he said “Ill take it!”

I guess the main thing is that you find a good rehabber and network. I have done about 4 or 5 assignments with the same guy now and thye all go smooth. I know exactly what he wants and i know what i want. I name a price and he says yes or no.

First of all, if you are rehabbing the property you are not wholeselling. I take a property and do nothing to it and sell it to a rehabber. I always put a property under contract first for X amount of dollars, find my buyer next if I don’t have one already, and then contact my private money guy who also does the double ended closing for me. The seller gets their money for what we agreed on, the buyer gets a house or commercial property at a discount, my private lender gets some quick cash for financing my deal for 24 hours and the escrow work, and I make a few bucks. The other way is to do an “assignment of contract”. Assignments are ok, but you don’t make as much money with them because the buyers always try to talk you down on the assignment amount you want. To advertise your property you should list it anywhere you can. Sign up with several online real estate investment groups. List it for sale on Craigslist, Recycler, PennySaver, etc. If your agent is smart he will have no problem relisting it back on the MLS. But remember his commission cuts into your profits if you choose to list it with them or any agent. Get a website to list your properties and blast it out to everyone and every real estate agent.

i agree with wolsen. the blast approach is your best bet. build your contact list and ping them with email newsletters or phone calls

We at CRH Organization now fund through Wholesaler Commercial Funding. We will fund the first side of your deal, so you don’t have to deal with negotiating back with the buyer to “allow” you to make any amount of money you want. We can do this in all 50 states. We can close up to 20mm in 1 day. We also do large groups of deals at the same time for portfolio buyers.