Hi everyone. I joined about a month ago to learn about real Estate Investing. I put my first ad out this morning and got a call from a wholesaler in a different state. He bought three properties at action and wants to JV with me to sell them. He sent me the details for each house and the comps along with cost estimates.
I have no clue about how to work this deal. I’ve haven’t read about this in my studies. How can I make this a win-win-win for all parties involves?
It will not be as easy to sell these since you do not live in the area. But you could start doing advertising in your market to see if you can find a buyer interested in investing in that state. Or even run craigslist ads in that state to find buyer.
Before you do anything though, you need to verify that the guy who contacted you really owns the properties. You do not want to get involved in a daisy chain. you can verify on the tax records in the county where the properties are located.
Also, how are you protected in the deal? Ideally, you’d get an option contract to buy at a pre-agreed to price. Then you sell for more. Your profit is the difference
it is really better not to work with wholesalers. It is better to BE the wholesaler. They already have their profit margin built in to the deal and that usually leaves not much profit for you. I know that is not what you wanted to hear but it is the reality.
Thanks for your advice. To clarify, the property is in my state and he is out of state. I am going to verify he actually owns the property before I do anything. I’m not interested in a daisy chain situation on my first deal. In the meantime, I’ll look for deals on my own. Again, thanks for your response.