In the beginning you might want to pair up with an experienced investor and ask to help them find good leads for them for free if they teach you the basics of wholesaling.The ultimate goal of a flipper is to "flip" leads with no money down, none of your own credit, in a relatively short period of time! The goal is to find someone that has the things you want and then ask them to teach you how they got them. Let's start with the meat and potaoes! You can also look into websites like http://teachmetowholesale.com
A typical wholesale deal will look like this:
You will find a motivated owner that allows you to put their property under contract at a discounted price. You will then market the lead for sale for more than your contract amount and when you sell it you keep the profit. The goal is to quick turn a contract in the beginning until you have enough money to go out and purchase a house with your money or your investors cash. A person can flip any type of property. Once you learn the paperwork, and who the key players are, then you can pretty much start printing your money because it is very easy to flip your way towards financial freedom!
Knowing how to construct a flip is your next major objective.
The easiest for sure is an assignment of contract: Thats when you put a property under contract, in the buyer section you put your name and/or Assignee. This gives you the ability to flip the contract to another buyer for a fee. When you open title for the sale you will give the title officer the purchase contract as well as an one-page assignment form showing you assigned your interest in the property to a new buyer. That assignment form will show whom the new purchaser is, the amount of the assignment fee, as well as how payout should occur. I usually use this technique when we are making a profit of $5,000 or less.
Hand holding everyone's hand through the closing and getting paid is your real objective. This is really hard to teach because each deal is dynamic but the basic concept is the same. First, make sure that your final end-buyers non-refundable earnest money is in escrow along with all the signed contracts / assignment forms. Next make sure your title compnay has opened the file and ordered the proper. payoffs and title commitments. Sometimes they are busy so a little bit of pressure from you will ensure that things don't get delayed.
All you need to do is make sure the seller and retailer are staying excited about the deal. Keep them separated at all times and never make the mistake of leaving them in a room alone . I have lost lots of money because I was lazy and didn't want to drive over to the property to let someone in for inspections so I would just have him or her meet the original seller there. Every time I did that the deal blew up once they got talking. And I did not make any money
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