What Does It Mean To Wholesale A House? - YouTube

What does it mean to wholesale a  house? Great question. Let's get into it.

We're going to talk about what is wholesaling,  the 3 methods used for wholesaling  

and last, I got a free gift for you that you will  not want to miss. What is wholesaling? Put simply,

it's selling the property without actually owning  it. So, what does that mean? Me as a wholesaler, let's  

say I get a property under contract, that contract  is actually what I'm flipping. For example, if I  

have a house that's under contract for 100  thousand dollars and I know someone's going to pay  

130,000 for it, I get that difference of the  30,000 for signing the contract. So, how does  

that work? Great question. Let's get into it. The  3 methods that are used when wholesaling  

are you could assign the contract. Basically you  have the contract and you sign it for the spread.

In that scenario that I gave, they're gonna pay  you 30,000 dollars for that contract.

The other is a simultaneous close. For whatever  reason, if you're having a problem assigning the  

contract, you may want to do a simultaneous close,  that's where both parties close at the same time.

You're closing and also the other buyer  that you're bringing to the table is closing  

as well. So, simultaneous close, what that is is  we go into we have either the same or two open  

escrows, right? So what I'm going to do is I'm going  to do a same close, they're simultaneous closes, two  

escrows at the same time. Let's say I'm buying it  for a 100,000, I'm selling it for 130.  

What I'll do is I'll wait for the person to come  in and close at 130, that money transfers over to  

my deal of a hundred and it all washes itself out.  So, that's a simultaneous close. A double close is  

you have this very similar but I'm bringing in my  100 thousand, they're bringing in their 130.  

Obviously the most ideal is to do a simultaneous  close on escrow to where you're not bringing any  

money in, you're just getting the benefit of the  130 by keeping 30 of it as a profit by finding  

the deal. In today's market, the housing market is  hot. It's really hard to find some of these deals.  

So, what we've gone into is more the commercial  deals. You may want to look at hotels to do this  

with or other commercial assets. These are areas  that people aren't necessarily looking for or  

looking at right now. If you need help with these,  you could hit me up or hit our company up. We work  

with people all day on identifying locking up  funding and finding sellers and for finding  

buyers for these properties as well. So, we can help  you with the funding and the buyers when finding  

assets like this, hit me up or hit our team up for  more information. If you go to realestateki.com,

there's a form in there or you could just call  us and we'll help you out through that process.

Here's the thing. A lot of wholesalers bring me  deals. I don't mind paying the assignment fee, they  

know that. If the numbers work for me, they work for  me. They may be making a lot of money but it's okay  

as long as I run my numbers and same thing with  you. If you run your numbers and it works for you  

and there's enough spread in there for you to feel  comfortable, you shouldn't necessarily worry about  

what that other person's making. There's still  opportunity in it for you so take it down, run with  

it if it works. If it doesn't, renegotiate. Before  I get to the next point, do yourself a favor. Click  

on the link below to subscribe so you get daily  content like this brought to you. So, thanks to  

that as a wholesaler that you want to look for, you  want to find motivated sellers. You want to find  

people that are in distress for whatever  reason, whether it's a divorce, unfortunately death,

bankruptcy, maybe some sort of financial distress.  Anyways, those are the type of people that you want  

to find that need your help. You want to be able  to do your numbers and understand your numbers  

and back into it to, make it make sense not just  for you but your end investor who's going to  

plan on fixing and flipping this, it's got to work  for everybody. Then you want to put in your offer.

I would make it as attractive as possible.  So, if it is taking a substantial haircut,

they're compensated for it. Like no inspection,  maybe it's money goes hard right away, maybe it's a  

quick close. Whatever their need is, try to address  their need and get it fit inside that offer. Once  

you have it under contract, get that into your  title company or escrow as fast as possible.  

You never know, they could be shopping it and  someone else could be getting under contract too.

You want to be the first one to open escrow. Once  that's done you should be looking for a new buyer  

to take that property down. Once you do, you get a  non-refundable earnest check deposit into escrow.

You want to make sure that it's non-refundable. You  don't want to get down to the day of funding or  

closing and these people can't execute. In doing  so, you may assign the contract. When assigning

the contract, again, that's where you're assigning  the contract, they're going into closing and you  

pick up or you get your check from escrow for the  difference after closing. We have a free gift for  

you for following this. We have a free wholesaling  checklist that you'll want to check out. Click on  

the link below, it's in the description and you can  get that free wholesaling checklist complimentary.