On this blog I am going to talk about Wholesaling Houses for beginners. There are 5 steps to closing a wholesale deal and it’s in this exact order.
- You have to First market for Sellers through Direct mail, Google Ad words, etc.
- Get The Seller under Contract by signing a Purchase and Sale Agreement
- Market for Buyers and blast to buyers on your buyers list.
- Sign a Purchase and Sale Agreement with the Buyer.
- Close The deal and collect the check through escrow.
MARKETING FOR SELLERS
You Market To Sellers through Direct mail, Google Ad words, Bandit Signs and other marketing channels. The best and easiest way is Direct mail. The Best and Cheapest way is Bandit Signs.
I got my first deal using Bandit Signs. All you do is buy the signs at www.dirtcheapsigns.com. After you have the signs place them on intersections that have the most traffic. DO NOT flood your city with these yard signs.
Check with your city to see if you are allowed to put these signs up. If not, just make sure when you put them up, you also take them down. The best time to put them up is towards the end of the week and then take them down in the beginning of the week, you do not have to take them down if you follow your cities rules.
GET THE DEAL UNDER CONTRACT
To get the deal under contract you have to negotiate with the seller in order to get the property at a discount. You can learn how to do this at www.how2flipuniverity.net. Once you get the deal Under Contract, open Escrow and check the title to make sure it is clear.
The Escrow Agent will Get The Deal paperwork ready and is now going to be waiting for your assignment agreement or your sell side purchase and sale agreement. Opening Escrow means you hand the Purchase and Sale contract to the Escrow Agent and they do the rest but first you have to find a “Real Estate Investor Friendly” Escrow Agent. The best way to find this person is by networking with local Real Estate Investors in your town.
You can do this by joining your local REIA. Real Estate Investor Association. Google this in your town. Look for Meet Ups at www.meetup.com and Network with investors, ask them which Title & Escrow company they use. Once you get hooked up with the right Escrow Agent you can now use this person for all your deals.
MARKET FOR BUYERS
When marketing For Buyers, you need to first of all have a list or be in the process of building a list. Every day you should be building a buyers list, and marketing for sellers. Build a buyers web site that collects names and emails every day. I will show you how to do this in depth at www.how2flip.net.
GET THE BUYER UNDER CONTRACT
Getting buyers under contract at the price you want them at is very important. Buyers are going to want to negotiate the price and even sometimes take advantage of you if you do not know what you are doing. You need to screen them, negotiate, and close them by getting the contract signed.
CLOSING THE DEAL!
Closing The deal is simple after you have all the paperwork between you, the seller, and the buyer in place. From that point forward the Escrow agent does all the paperwork and they send you a wire or check after the transaction is closed and recorded.
MY FIRST DEAL
THIS IS THE PROPERTY
This Deal solidified this business for me. Even though I knew I was going to make it happened, having the check in your hand really just solidifies that “This does work” and gives you the strength to continue for bigger and better! I got this deal by responding to a Bandit Sign (Yard Sign). Learn more about wholesaling houses for beginners.