What you are going to read below is totally different from everything you have every learned about wholesaling. I will teach you how to do this methods of real estate investing totally different from any other guru. None of the techniques require ANY money, credit , or experience. So if you find yourself in one of the categories below :

* You are already a traditional investor who owns at least 1 rental property
* You have ordered at least 1 other course but haven’t gotten started yet
* You are actively involved in real estate and have studied many courses
* You know absolutely nothing about real estate

This wholesaling course is designed for ALL of you. I cater to those who know absolutely nothing about this business. All you need is the information in this Course (and the appropriate included contracts) to make more money than you’ve ever dreamed possible!  Are you ready to change your life? Let’s get started!

PART ONE

Wholesaling is one of the the easiest way to make money in real estate. First, let me tell you what wholesaling is, and then I’ll tell you all the things wrong with it and how my method is just about perfect.

Typically, here is how wholesaling is supposed to work: You find a great deal and put it under Contract, find a Buyer, and “flip” the deal to another person. You are simply a middleman. You tie up the property with an Agreement to purchase it, and then you find a Buyer who gives YOU a Contract to purchase. Remember that a Contract to buy a piece of property also gives you a right to sell that property. Then you all go to the Closing together, and the two Contracts are put together by the Closing Attorney. You have to get really good deals from motivated Sellers for this to work.

For this example, let’s say you find a fixer-upper that needs a lot of repairs that you put under Contract for $25,000. It’s worth about $65,000 AFTER repairs (about $10,000 worth of repairs are needed). You have to find a Buyer willing to pay $30,000 for the property. Your Buyer pays Closing Costs, and you just made $5,000 on a property that you sold that you didn’t even own!

Sounds easy? Yes and No. There are a a few problems. First of all, you had to put down some money as a deposit (earnest money). Negotiating about earnest money can be very awkward for some people. Secondly, your Buyer may back out and not buy at all, which will cause you to forfeit on your Contract. BUT .. most important is the fact that you may have committed fraud in some states, because you led the Seller to believe that YOU were going to buy the property, and you also led your Buyer to believe that you were the Owner of the property. Personally, I don’t like lying to anyone or misleading them in the slightest way. Fortunately, I have the ultimate solution to all these problems. Read the above information again to make sure that you understand the concept of wholesaling before proceeding to the next section.

PART TWO

Here is the key word to solving all of the problems in wholesaling: Non-exclusivity. I don’t tie up the properties by putting them under Contract at all. I use an Open Option or–as it is also known by–a Nonexclusive Option.  More on the Option method HERE. Some people refer to it as a Flex Option. This document merely states that you have an Option to buy the property for a negotiated price, but that I don’t take the property off the market. The Seller can continue to market the property or even list it with a real estate agent, but I still have a right to buy the property at a certain price.

Since I didn’t tie up the property, how much money do you suppose I am going to give the Seller as a deposit? Not one penny!  And they won’t expect any money, either! You can put an Option on just about anything, but the best thing to wholesale is a property needing major repairs. Since it isn’t costing you any money, you should Option everything you can get your hands on. Some will sell and some won’t, but you have absolutely nothing at risk. Once you do your first one, you need to build a Buyer list. Placing an ad on many of the free online classified ad sites can help you to create such a list rather quickly.  Keep the ad simple. Something like:

HANDYMAN SPECIAL!
Cheap! CASH!
3/2 555-5555 lv msg
Website Domain LINK

I would suggest that you let your voice automation system handle most of your calls (I recommend www.RealEstateTeleCenter.com),   and put “lv. msg.” at the end of your ad after your phone number. If you don’t, you will get a lot of hang-ups. You have to find a really good deal for a rehabber to be interested in it.

When you get calls:

1. Give them all the necessary information and have them ride by to look at the property
2. Tell them that you are a wholesaler and that you find really great deals from time to time
3. Ask them what they are looking for–what area of town, minor cosmetic repairs, major structural damage, how many bedrooms and bathrooms, and what price range
4. Write down this information in your web customer management system or Excel spreadsheet along with their names and addresses, and you now have your Buyer list

You no longer have to place an ad but can call Buyers from your list whenever you find a great deal! Be sure to tell your potential Buyers that you have the property “under Contract.”

When your Seller signs your Option, get the following information:

1. The amount of any mortgage(s)
2. Number of bedrooms and bathrooms
3. The square footage
4. Cost of taxes and insurance
5. Type of heating and air
6. s much other information as you can gather for your Buyers

If the property is a rental, you MUST get copies of the Lease or Rental Agreements. When selling rental property, your Buyer may have to get financing, and it’s likely that the bank or mortgage company will want to see those Agreements. If the Seller can’t find them, don’t waste your time on this deal! With rental property, you will need to know the following:

1. Any vacancies
2. Who is responsible for the lawn and pest control
3. What the rent payments are
4. When the Leases expire
5. What utilities are involved
6. If Tenants pay all utilities
7. Whether or not water is separately metered for each unit
8. What appliances the landlord is responsible for
9. The amount of the deposits
10. All of the previously mentioned information as well

You have to be prepared when people start calling you. Don’t worry; if you missed something, you can always call the Seller to get the information. When negotiating, you and the Seller have an adversarial relationship, but after signing your Option Agreement, you and the Seller are actually working together. He/she knows that you are not going to buy the property yourself but that you are selling it for him/her (at your own expense).

What do you do once you find a serious Buyer?

You get your Buyer to sign a Purchase and Sale Agreement (preferably your own), and then you collect a substantial deposit to show that the Buyer is serious. Don’t tell the Buyer that you have a Nonexclusive Option on the property. Always say that you have the property “under Contract.” If you accept the Buyer’s Purchase Agreement (and don’t use your own), you will have to mark through any “weasel” clauses–such as “subject to” or “contingent upon” inspection, approval by, or anything else. It’s always better to simply make your Buyer use your Purchase and Sale Agreement.

My Contract Agreement has no weasel clauses and clearly states that the earnest money deposit is nonrefundable. (The same goes for you whenever you make an Offer on a piece of property that you want to buy for yourself; so-called real estate gurus tell you to put contingencies in your Offer, but without any such clauses you stand a much better chance of having your Offer accepted, and all you can lose is your deposit anyway, which should be as little as possible.)

So now you have a signed Agreement and $500 or $1,000 earnest money. What now? Well, first of all, make sure that the deposit is in certified funds (cash, money order, or cashier’s check) only. Until now, the property wasn’t tied up, but at this time you need to do so. Contact the Seller immediately and tell the Seller that you have found a Buyer.

You should have already told the Seller what you intend to do, so both of you should have worked out the least amount of earnest money the Seller would accept. You now have to tie up the property for 30 days. You received a nonrefundable deposit of $1,000 from your Buyer. You write a check for half that amount to your Seller along with a Purchase and Sale Agreement. Of course, you take your Buyer’s deposit and put it in your bank account to cover the check that you gave your Seller. Now you have actually tied up the property and even made $500 on a property you don’t even own.

If the person you found actually buys, you get the difference between what you paid and what you sold the property for. Keep in mind that your Buyers are looking for good deals. They are the ones taking the risks, and they are the ones spending the money to rehab the properties; therefore, you must let them have most of the profit. They don’t mind you making 1, 2, or even 5 grand, but you must give them the most profit.

I would never accept less than $1,000 on any deal. YOU decide what to sell the property for. The money is made in buying it, though. You have to negotiate a low price from someone needing to sell. The best deals come from landlords who are just tired of landlording and want out of the business. Other good deals come from out-of-state Owners and/or people who have inherited rundown property from a deceased family member. These deals don’t fall from trees, but if you shake enough trees, a few will fall!

To further protect yourself, get your Buyer to sign a “Disclosure” which says that they understand that the Seller (you) are not the Owner of the property. My Disclosure form also gives me 3 days to cancel the deal. This is very important, because what if you approach your seller and, for some unlikely reason, your Seller has already found a Buyer?

Remember, your Option didn’t take the property off the market, so there is a chance that your Seller could sell it. In such a case, you would simply refund the deposit to your Buyer, tear up the Purchase and Sale Agreement, and cancel the deal. You still have lost nothing! Then you move on to the next deal. I’ve only had a Seller sell before I could a couple of times, so it could happen. You need extremely good Agreements to protect you in case of any situation.

For the wholesaling business, you will need:

1. An Option Agreement
2. A Purchase and Sale Agreement
3. A Disclosure Form

Now, what about Option Consideration? Doesn’t every Contract need “consideration” to be legal? Yes, but consideration doesn’t have to be money! My Contracts are all ingeniously written so that you don’t have to put up ANY money, not even a dollar bill! Now, that’s what I truly call making money in real estate even if you’re FLAT BROKE! Granted, in some states you have to put up a minimum amount for an Option to be legally “enforceable,” but the Option is still a legal Contract regardless. And you are using a Nonexclusive Option, so this point is moot.

Once you find the Buyer, you are going to put it under Contract anyway, which, by the way, requires no earnest money; the only reason you give the Seller half your deposit is to keep the Seller happy in case your Buyer defaults, and the Seller would be compensated for taking the property off the market for a time. The most I’ve ever paid was $10 to Option 6 properties from a Seller, but that was before I figured out that it’s always better to put down zero dollars! And I haven’t paid a penny since! In some states the minimum is $10 to make an Option enforceable, and in Florida it’s $100, but I would still put down zero.

It also deserves mentioning that in at least 2 states (Colorado and Kentucky) it is illegal to “deal” in Options without a license (which is difficult and expensive to get). This, in my opinion, refers to a person who buys and sells Options, which you will not be doing. If you assigned your Option to another person, you could be breaking the law in these states. That’s one reason why I don’t like assignments. My interpretation of the law (check with a local attorney) seems to clearly exempt what you will be doing with my System from what the law defines as a “dealer” of Options.

PART THREE

Now, let’s look at another profit center with this magical Option Agreement. My favorite properties to Option are not fixer-uppers but nice, luxurious, prestigious homes in nice neighborhoods. This works great in high priced areas.   Keep in mind, you are a wholesaler with the fixer-uppers. You are merely passing on a good deal to a rehabber. With these expensive homes, however, you cannot use your Buyer list. You will be selling to owner-occupants primarily. What you are looking to Option now are nice homes in nice neighborhoods that need no work at all.

Ask the Seller what the lowest is that he/she would accept for an ALL CASH sale. Then give the Seller an Option. You will have to find a cash Buyer for the property, and you keep the difference on the spread. For example, let’s say the house is worth $500,000, but you can get it for $400,000 cash. You can sell it for $450,000, and your Buyer will still save $50,000!

Where do you find these Buyers? Shhhh . . . keep it quiet, because this is a secret . . . all you have to do is create a online flyer ( www.vflyer.com ) listing all the many amenities and extras involved, purchase an email list of   doctors in the area and send them an email with your deal.   (of course you should have your virtual assistant call them and ask if you can it over )

The headlines of the ad on the email / Flyer should include key words like: PRESTIGIOUS, ELITE, or LUXURIOUS. If you know someone who works in a hospital, you can have that person place the flyer on a bulletin board. Ads don’t usually work for high-dollar homes, but this is to your advantage. You can find a Buyer when your Seller can’t. The only rule to follow is that the properties MUST be non-owner-occupied; in other words, they must be VACANT.

Here is the reason why. Let’s say you find a Buyer, and the Buyer goes to look at the property. If the Owner is like most people, he/she will casually ask, “So, what price were you given?” Remember, you have an Option with the Seller for $400,000, but you are asking $450,000. When your Buyer says, “$450,000,” the Seller might say, “Oh no! I’m the Owner, and you can buy it from me for only $425,000!”

The Seller just made an extra $25,000, the Buyer saved an extra $25,000, and you just got cut out of the deal! If the home is vacant, you can show it just like a real estate agent, and if the Buyer is interested, you collect a substantial deposit (at least $10,000), and then get a signed Purchase and Sale Agreement. Then split that with the Seller, and quickly put the home under contract.

Obviously, you need the keys to show the house to your Buyers. Tell the Seller that you don’t just go traipsing people through a house until you’re sure that they are ready to buy. If they demand a deposit, say “How much of a deposit would you get from a real estate agency?” The answer is NONE! You are sort of acting like a real estate agent, but you don’t need a license, because the Option Agreement makes you a “party in the transaction.” You can even let the Seller list the house with a real estate agency, providing that the Seller excludes you and your assigns from the Listing Agreement.

You will show the house, sell it, market it at your expense, even cut the lawn and keep the windows clean, and you will not charge the Seller a commission (you cannot lawfully charge a commission without a real estate license). And you just made $50,000 on a house you don’t even own. Not only that, but you didn’t pay a single cent to control that property with the original Option! Isn’t this business great?!?

By the way, I usually make my Seller pay for title insurance, and I usually make my Buyer pay all remaining Closing Costs. Sometimes, you can split these between Buyer and Seller. If your Seller pays half and your Buyer pays half, which half do you pay!?! Now, what if your Buyer can’t qualify or doesn’t buy for some other reason? Your Seller doesn’t much mind, because (as mentioned earlier) the Seller was compensated for taking the home off the market (you give the Seller half your earnest money for just that purpose).

As you can see, the Contracts are the heart and soul of this business, and my Contracts are the best in the entire business BAR NONE! Every Contract I use is either a 1-sided or 2-sided 1 page Agreement, because such Contracts do not frighten or intimidate Sellers or Buyers. My Contracts are very nonthreatening, but they contain all the clauses and provisions which protect you in almost every possible circumstance.

Now, let me ask you one simple question. Did I keep my word–did I actually show you how to make money in real estate with no money, credit, or job, even if you are flat broke and/or bankrupt? Keep reading; you haven’t seen anything yet!

Get the contracts and forms HERE

PART FOUR

RULES

1. Always DISCLOSE! Never claim you own the house.

2. Never accept a check (personal or business) for the down payment. You must require certified funds or cash only! If you violate this rule, you will regret it one day.

3. Never allow your  Buyer the right to assign his/her contract

Violators, proceed at your own risk and financial peril!

GO TO NEXT CHAPTER HERE