The first thing that you need to do is find a Real Estate Agent. They are the key that unlocks the MLS. Without them you cannot access the MLS let alone make offers or deals. Let's say they are the "Gatekeepers" of the MLS and you need to get through the Gatekeeper to get into the promised land!
You must find a Real Estate Agent with an open mind willing to work with you ( The Real Estate Wholesaler)in this process. Let them know that by working with you they will not only make a commission but you will be helping them sell allot more houses if they work with you. Many of the MLS properties that I make offers on are listings that have been on the MLS for 90 days or more. These listings would expire soon so I am essentially helping the Agent by introducing the property to my Real Estate Investor buyers list and helping the seller with a property that is not selling.
The difference between a Real Estate Wholesaler and a Real Estate Agent is that we spend most of our time building our Investor buyer's list. Wholesalers (if their doing it right) build their Investor buyer's list with active buyers, investors etc... before they even begin locking up deals. The buyers list is the foundation that wholesaling is built on and every good wholesaler spends 90% of their time building that list.
In such a down Real Estate market you should be able to find plenty of real estate agents willing to help you through this process. After all they currently have more properties than they have buyers so they would actually benefit by being able to introduce MLS properties to your buyers list.
Have your Realtor send you properties that... 1.) Are in your market area. 2.) Have descriptions such as "Motivated Seller", Handy man", "Make Offer" etc...
- Have been listed for 90 days or more.
- You can also use this strategy for Short Sales and REO properties.
I have my Agent make an offer on the property at 30% below the asking price. This ensures me enough room to make a wholesale fee.
If you get an offer accepted you will need 3 documents for this wholesale process know as Instant Equity Exchange (IEE). All documents must be signed by you and the seller. You can access these documents at http://www.deangraziosi.com/ieecontracts.
Investor Disclosure Agreement and Seller's Acknowledgment This contract clearly explains to the seller that you are an investor and that you have intentions of selling the equity in the contract to another buyer and make a profit. This contract MUST be signed by both you and the seller.
Investor Purchase Agreement This is your standard purchase agreement.
- Your name as buyer
- The Amount that you are paying for the property and the amount of your fee (ex. purchasing for 50k + fee 10k so 60k goes on the purchase agreement). The Investors Disclosure Agreement and Seller's Agreement discloses your fee. These contracts will ensure you get paid at settlement out of the purchase price.
Discharge of Agreement To Purchase This is the last contract you will need. This is the contract that you will need to get signed once you have found a buyer. You will go to the seller and let them know you have a buyer. You have already disclosed to them your intentions of finding a buyer so they are not shocked when you ask them to sign this contract. At this point you are helping the seller and new buyer draft up a new purchase agreement between them. Once the new contract and the Discharge of Agreement to Purchase is signed you can rip up your original Purchase Agreement between you and the seller.
The Investors Disclosure Agreement and Seller's Acknowledgment along with the Discharge of Agreement to Purchase will act as your invoice to be paid at settlement. You will just hand these two documents to the closing Agent or Title Company and be paid your agreed amount at closing.
For more detailed information on this process I recommend reading "Profit from Real Estate Right Now!" By Dean Graziosi
For more real Estate wholesaling Resources visit the link in the resource section below.