I recently surveyed a list of new investors. These were the most asked questions.
1. How do I put a house under contract but not buy it? I just don’t understand this
This a great question it can be a little difficult to understand for new investors since when you think of putting a contract on a house to buy it you would need money and have to take out a loan.
What we teach with wholesaling is that you only put the house under contract to control it so no one else can buy it. The plan is to then resell the contract or assign it over to a buyer that wants to pay more.
If for some reason you cant find a buyer we teach you how to handle this situation as well. You will never get stuck with a house you have under contract.
2. What if I don’t have a buyer or cant find one
This goes along with the first question. If you cant find a buyer you will be able to get out of your contract. You will use a inspection period anytime you write a contract and anytime during this inspection period if you cant find a buyer you can legally and ethically back out of the deal.
It is customary when you buy any house to get an inspection period to check out a house and know what you are buying. This is the time you will be trying to find a buyer for your property.
3. What Is Earnest Money?
Earnest money is what you put down to make a contract valid. It can be anything of value. Typically and in our case this is money. I teach to use $10 in some cases it needs to be more. Every accepted contract must have earnest money of some sort.
Here is a video that explains earnest money in greater detail – https://old.brianhaskins.com/your-earnest-money-questions-answered/
4. How Do I find Motivated Sellers
This is a great question here is a video that explains finding motivated sellers in more detail – https://old.brianhaskins.com/3-sure-fire-methods-for-finding-motivated-sellers/
5. Why Would Home Owners Sell To Me For A Discount
This is a question that I hear all the time. Why would they take my low ball offer? The reason someone would sell at a discount and give up their equity is because there is something that is more important. They need to sell for a certain reason.
You will not be able to get deals from people that want to sell only people that need to sell. That’s very important to remember.
Some reasons that people need to sell
6. How Do I Find A Buyer?
Its not difficult in today’s market to find cash buyers looking for properties in your area.
Here is a great blog post I made about finding buyers – https://old.brianhaskins.com/building-your-buyers-list/
7. How Do I Fill Out A Contract
Here is a video that shows you how to fill out contracts – https://old.brianhaskins.com/how-to-fill-out-contracts/
8. How Do I Sell The Property once I Find A Buyer?
Finding a buyer is not as hard as it sounds. Refer to the video answer that I talk about for question 6
9. How do these motivated sellers contact me?
There are two ways usually by phone or through a website. Here is a example of the kind of website you can use http://www.CheapREIWebsites.com
10. I have a full time job how can I do this?
Here is a great resource that will show you how to flip houses in your spare time – https://old.brianhaskins.com/how-to-flip-real-estate-in-my-spare-time/
11. How do I make sure its a good deal? How do I find the value?
Here is a great resource that you can use to learn how to evaluate deals – https://old.brianhaskins.com/determining-your-offer/
12. How do I get over this fear of getting started?
This will be different for everyone. Honestly my biggest tip is find a mentor that will show you step by step how to get started. I can mentor you if there are spots available you can check out http://www.REIProtege.com
13. Do I need any kind of license?
No you do not need any kind of license to wholesale houses no matter what you hear from anyone it works in all 50 states
14. Is this legal?
Yes 100% thee is nothing illegal or even borderline illegal. As long as you do what you say your going to do and play by the rules of your contract you should never get into any trouble. Its when investors do illegal and immoral things that we get a bad name as investors.
15. How Can I Protect Myself?
Some people are worried about law suites or potential problems that can come up. The honest truth is that if you play by the rules and do what is in your contract you never have to worry about this. Wholesaling is the only investing strategy with little to no risk.
16. I feel like I am talking advantage of people making low ball offers.
Don feel this way people that sell their properties to you are very happy to do so. They need to sell and by you helping them you take a big load off of them and I still get Christmas cards and thank you cards from people.
These are just some of the main questions I get and these answers will really help you go a long way when first getting started as a real estate investor.
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