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Published byFrank Baldwin Modified over 7 years ago
REI ETUTOR Wholesaling
REI eTutor What is Wholesaling? Buy at a discount. Sell at a discount
Wholesaling REI eTutor Benefits of Wholesaling No money down investing Earn cash today Easiest method to enter the real estate market
Wholesaling REI eTutor How to Make Money Wholesaling Equitable rights Allows you to market property Property is marketed to investors (rehabbers) or landlords Money is made between your purchase price and end-buyer’s purchase price
Wholesale REI eTutor How To Make Money Wholesaling Two methods to close wholesale deals Assign your contract Have a double closing
Wholesaling REI eTutor Assigning Your Contract What is a contract assignment? Assigning your right for someone else to buy the property. Original contract should contain the language “and or assignee” All contracts are assignable unless otherwise stated.
Wholesaling REI eTutor Assigning Your Contract Benefits No closing costs Simple one page assignment Pitfalls Everyone involved in the transaction knows your profit
Wholesaling REI eTutor Double Closing Title company of law firm handles both closings Your close with the end buyer first You then close with the seller You are handed a check for the difference
Wholesaling REI eTutor Double Closing Is this legal? Yes! Benefits Profit is hidden Pitfalls Cost of the closing Tip: Only use in situations with a large profit margin and have a title company or law firm lined up ahead of time.
Wholesale REI eTutor How to Wholesale Step 1: Locate a Seller (Not a Property) Step 2: Analyze the Lead Step 3: Make an Offer Step 4: Property Inspection Step 5: Contract (Negotiation) Step 6: Find a Buyer Step 7: Closing
Wholesale REI eTutor Locate a Seller (Not a Property) Goal is to find a motivated seller Properties are not motivated Properties are no good if you can’t find the seller Psychology of the Seller Why is the person selling the property What are his/her needs
Wholesale REI eTutor Locate a Seller Bandit signs Website Craigslist ads E-letters Yellow Letters
Wholesale REI eTutor Analyze the Lead Does this property have wholesale potential? If yes: What are the estimated repair costs What is the As Repaired Value (ARV) What would an investor pay for the property? Your offer must be lower than what the investor would pay.
Wholesale REI eTutor Analyze the Lead If no: Would this home be worth rehabbing? Would the seller be interested in owner financing? Would the seller be interested in a lease option?
Wholesale REI eTutor Make an Offer Depending on the property, have an offer available for each type of scenario If your offer is rejected: Find out what amount they are looking for If realistic Adjust your profit if you feel the property can sell fast Perform a property inspection to see if the numbers can be adjusted Always mail a written offer to the seller even if rejected
Wholesale REI eTutor Property Inspection We highly recommend inspecting the property either during or immediately following the offer phase. Why? Avoid wasting time with sellers who are not that motivated. What to look for? Structural damage Roofing repairs Curb appeal potential Interior cosmetic repairs
Wholesale REI eTutor Property Inspection Look for: Illegal additions Placement of electrical and gas meters Functionality of floor plan
Wholesale REI eTutor Property Inspection Take tons of photos Take 30 to 50 photos Outside angles Every room Every closet All damages Two Purposes You never want to revisit a property to double check something Can email pictures to potential buyers
Wholesale REI eTutor Contract Present the seller with a contract when: Verbal agreement of offer or Mail a contract if offer is denied but the seller is motivated ***Use Our Contracts as a Sample Only*** Avoid losses by having your contract reviewed by an attorney. We are NOT lawyers Contracts may have to be worded differently depending on your location
Wholesale REI eTutor Find a Buyer Buyer’s lists are important! Don’t have one? Start one today! If you have a buyer’s list Put together an email package Property location Photos (Interior and Exterior) Comps
Wholesale REI eTutor Closing Interview title companies or law firms for closings Make sure they do double closings so you have this option available. Enjoy the profits from all of your hard work
Conclusion REI eTutor REMEMBER Every Offer Does Not Result In A Deal But Every Deal Is The Result Of An Offer
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