Real Estate Investing Training Video - How To Wholesale Houses Part 2

Real Estate investing video training http://www.localmentor.com Michael Jake discusses how to simplify wholesaling houses. Simple Steps to Wholesale a House for Cash in less than 2 weeks (more)

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• localmentor

[23muba]

hi there

some general questions about wholesaling, If the house is trashed what can be done? I mean when you show it to your local buyer, what if he says no? Whats the exit plan? Thanks.

[localmentor]

@23muba - most of the houses we wholesale are trashed - that's why we get them so cheap. It actually confuses rehabbers/buyers if the house is too nice. Wholesaling junkers is what it is - buyers are fix and flippers and they don't care what they look like, they only care there's enough spread to cover rehab costs and a profit.

[kiddreaper1]

Hi jake. I am also just starting off. I have a website that brings buyers to me. I have 2 questions 1. what form do i give the seller to turn the property over to me. my next question is i have a motivated seller but he is saying he can't put it under contract because the bank will recall his loan in full. what do i do to get around this?

[localmentor]

@kiddreaper1 - if we're talking wholesaling, I use a purchase and sale agreement - this gives me control of the property. Many of the deals I wholesale (or rehab for that matter) are vacant - my contract says I can have access to the house to show contractors or lenders, etc. this allows you to show it to buyers as well.

"recall the loan in full" for going to contract? they can't and how would they know anyway. Are you trying to do a "subject to" deal? just going to contract to sell ....

[localmentor]

....would not violate a due on sale clause unless the contract spanned a very long time (like a 3 year option for instance). You might need to get clarification. Once you go to contract on a wholesale you're going to find a buyer and assign (or double close) at which time (closing) the original lien holder gets paid off anyway. no problem.

[Ednyce81]

now my question is this. what is you cant find a buyer ? do you get stuck with the house or is there a clause in the contract that you can just give it back free & clear ? because im new to this and am looking forward to my first sale. been reading alot of books & stuff & just want to get all the info i can be4 i begin. thanx

[localmentor]

@Ednyce81 - I get asked that question a lot! If you tie up a good deal, you usually have people fighting over it. I do have an inspection clause in my contract without a date contingency that allows me to get out of the contract up to the last minute. Build a buyers list first (see MichaelJake d o t c o m for a video on that) and that will give a piece of mind that you'll be able to move your deal when you get it!

[MBJB07]

Hi Mike, I have two quick questions...

1. Do I need a lawyer to make my contracts for me so I can be sure they're water-tight? If not a lawyer, then who?

2. If I don't know the buyer and I ask for earnest money, how much should the check be for, and does it go to the title company or do I keep it?

Great videos! You summed it all up nice. I knew it couldn't be as hard as all the other videos make it sound. Thanks!

~ Michael

[kiddreaper1]

@localmentor also i have a meeting with him on thursday to view the house so i wanted to know what to say to him about the contract. he lives in the house currently.

[kiddreaper1]

@localmentor O yes i am trying to whole sale so i was making sure i have the right contract printed out. I had that document printed already. thank you. as for the guy. i was not trying to do a "subject to" the guy needs to move out but he owes 42000. he said he talked to the bank and they told him he can't put it under contract or they will accelerate the loan. I wanted to explain to him they won't do that because banks don't want properties they just want the money.

[Ednyce81]

@Ednyce81 what if you cant find a buyer is what i meant to say