Today I’m going to wrap up my week-long series on wholesaling. The last basic step in the wholesaling process is finding buyers. You’ve generated leads, the leads have come in, you’ve fielded those calls, called sellers back, seen some houses, made some offers, and you now have a signed contract. Your next move is to find an investor that you can sell or assign the contract to.
There are a few different ways to do this:
- Double Closing/Simultaneous Closing
- Close on the house yourself through transitional funding and then the end buyer buys the house from you.
- Assignment Contract: That’s how I’ve handling my wholesaling business so far. I get a house under contract (signing a purchase and sale agreement with the homeowner) and then I send the buyer an assignment contract that assigns my interest of the original agreement to them. I get paid an assignment fee.
But before you get to all of this, you need to find a buyer. To be honest, this hasn’t been a problem for me and it probably won’t be for you if you’re already a house flipper. I already have a wide network of investors I know, so when I find a deal all I have to do is pick up the phone or send out an email.
If you don’t have relationships with investors already, what do you do? Here are a couple of helpful tips:
- If you find a truly good deal and you get it under contract, you will not have a problem selling the house.
- If you get a house under contract and no one seems to be buying from you, you probably don’t have a good deal to begin with. You’ve either estimated the ARV too high, the repairs too low, or both. The investors looking at your deal are looking at the numbers themselves and they’re not agreeing with your calculations.
Where do you find buyers?
- Craigslist: It’s easy, free, and everyone uses it whether they admit to it or not. You will get a lot of junk responses, and you can weed those out by asking for a non-refundable down payment. If they won’t do that, they’re not actually planning on buying the house.
- Local RIA Meetings: Go to those meetings and start introducing yourself to people. They’re a great way to meet investors and each person you meet might refer you to more investor friends.
- Online Advertising: Things like Google Adwords and Facebook ads cost money, but they can be useful. I suggest you start with just Craigslist and RIA meetings. Chances are, if it’s a good deal, you’ll have people lined up to buy the property.