Assigning contracts is not just about finding a deal and then assigning the contract to someone else. Wholesaling is about knowing which properties you don’t want to work on and knowing which of your investors does want this kind of property. As you market, you will find opportunities that don’t fit your own personal investment model. These are the properties that you will want to consider assigning to another investor. You have already taken the time to market, identify the motivated seller, and put together the deal. You deserve to get paid. This is when you let someone else take over the contract for an assignment fee.
A critical aspect to wholesaling is match making. You are looking for motivated sellers as well as buyers. Start by networking with other investors to find out:
What are they buying?
- Where are they buying?
- How much are they willing to pay for a property? (How much of a discount do they want to be interested in a property?)
- Are they willing to pay your assignment fee?
Once you know this information, you are better able to go out and negotiate comfortably with sellers. You know that you have a buyer if you are able to get those terms. This is also a great way to raise capital so that you can invest in other strategies.
Start by calling sellers that are advertising on the internet on Craig’s List and other for sale by owner websites. Contact the city for a list of properties that have been condemned or have liens against them. Determine what neighborhoods your buyers are interested in and then drive for dollars in those areas. When you find a property that looks like it is a good candidate, contact the owners and let them know that you are interested in purchasing their property.
The beautiful thing about investing in real estate is that there are so many different strategies and techniques; you just have to be willing to try. As you implement the knowledge that you receive from our training classes, you will be empowered by how many different techniques you can utilize to be successful.
- Jonas Taylor is a financial expert and experienced writer with a focus on finance news, accounting software, and related topics. He has a talent for explaining complex financial concepts in an accessible way and has published high-quality content in various publications. He is dedicated to delivering valuable information to readers, staying up-to-date with financial news and trends, and sharing his expertise with others.