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I have been learning a lot about the wholesale technique in particular, and I’m curious on how you manage to close these deals (or others) without the buyer contacting the seller themselves. I get that you don’t give them PII about the seller, but don’t they want to see the house first? One quick tour and they would have the address, which is all they need to contact the seller.
Now, I understand that houses under $250,000 are typically not as serious for these types of investors, at least for their purposes as they likely aren’t moving in, but what about in the case of multi-million dollar homes, estates, or ranches? Surely they want to try before they buy!
Basically my mind is trying to grasp how not to get kicked out of the deal, despite the price. Thanks in advance!
HI Adam
Because you have a contract to buy the house, you control the asset. If necessary. you could record your contract to even if an investor went around you, you;d get paid to make your cloud on title go away.
But honestly you will RARELY have this problem. Here’s why…
Rehabbers rely on wholesalers to help find their deal. If a rehabber goes around you, the word will get out in the investor community what happened and no wholesaler would ever work with him/her again.
They need you. That is why they will not go around you.
That’s not to saw that it can’t happen. It has happened to me. But it is extremely rare.
Also, if you have a really good relationship with the seller and are honest with them, then the seller would never fall for that tactic. By honest, I mean that you need to tell the seller the truth. Tell them that you are probably not going to buy the house but instead, you are out there looking for good opportunities for the investor group you work with. People from the investor group need to see the house to approve the transaction.
Usually when I show the house to my investor/rehabbers, the seller is not present. Most of the time the house is vacant and the seller either hides a key or I write in the contract that they have to give me a key the day the contract is signed so that I can show the house to the investor group
If the house is occupied, I ask that the seller not be there when I show the house. To inconvience the seller as little as possible, I make arrangements for a 2 hour window that they need to be gone and the investors only have that 2 hours to come see the house and submit an offer.
Once word gets out that you find great deals, rehabbers will be calling you asking if you have anything new. They need your help finding good opportunities.
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