In general, wholesalers take up two different methods to close a transaction and get paid, namely through two strategies i.e. assignment of contract and double close or double escrow method. This article Zack Childress review about how to close your wholesale deal will help all real estate wholesalers out there, so without further ado, let’s get into knowing about the same.
1) It all starts with research. Research your local market, determine your marketing strategy and investing plan and pull comparables of different properties in the area, while doing all of this, you also need to build a timeline for how long you are interested to work out and come to a conclusion about closing the deal.
2) Build cash buyers list. Find the potential buyers, get their contact information, for that you can create a lead generation campaign using direct mail, or bandit signs to acquire potential buyers.
3) Market to motivated sellers. Finding the potential buyers and the motivated sellers in real estate industry is easier said than done. While realtors follow their own techniques to it, Zack Childress suggest targeting delinquent taxpayers, property holders nearing foreclosure and so on.
4) Get a property under contract. The most important thing here is to educate yourself on the legalities of the real estate transaction in line with your state laws. While you come to an agreement on price and terms with the seller, it’s also the right time to decide whether or not you will assign the contract. When you have done it ensure that you receive a copy of it.
5) Finding the end buyer. Once the property is under contract, confer with the buyers list that you have created during the initial stages of the deal. Do not hesitate to inquire other real estate wholesalers in your area if they know anyone who might be interested in your deal.
6) Assignment of contract. This strategy is one of the many forms of the no money down deal where you need to characterize your assignment fee and perform an assignment of contract. The assignment of contract takes place during the closing stage, having said that it is important to collect a deposit from your end buyer as soon as the assignment is executed together with it an email copy of the agreement to your title company also is a must to collect.
7) Close the deal and get paid. The final step is to close the deal and cash your check. During this stage it is imperative to ensure that your end buyer shows up to sign the documents, for that he/she needs to bring in the funds required to purchase the property along with the assignment fee. As a final point, your title company will cut you a check for your fee.
Hope you found this piece of writing helpful, stay connected to Zack Childress real estate blog to equip yourself with trending real estate information and tactics that will help you make more profit.