While locating a suitable real estate property for wholesale is a milestone, it is quite another thing to convince the owner to sign a contract with you. Having the property owner sign the contract is important because it gives you confidence to go ahead and sell the property at a profit.
Approaching the Owner
You will need to book an appointment with the property owner so that you can have good time to discuss about the business, and you will want to go about this in a delicate way. Remember, as a wholesaler, you may not be a traditional real estate professional; hence, gaining the trust of the property owner will play an integral role in moving forward. You will need to keep time for the meeting and be courteous and professional.
Negotiating the Deal
When negotiating with the property owner, it is important to discuss the benefits the owner will get if they sold the property to you. You could focus on things like ensuring that the property owner does not default on the mortgage they are servicing. You may also want to focus on how you will handle processes such as appraisal, inspection, and the contract drafting. Show the property owner that you’re going to take care of these processes so that they won’t have to go through the trouble. Most owners prefer not to incur any upfront costs. If there are any repairs that need to be done on the property, it is important to let the owner know that they will be taken care of since the cost of any repairs will justify your offer to the property owner.
Signing the Contract
Getting the home owner to sign your contract will give you the all-clear to go ahead and wholesale the property based on the contract terms. You could involve a real estate agent or a local attorney in drafting the contract (though most wholesalers do it on their own).
In most cases, property wholesalers tell owners that the buyer is their partner. This is meant to prevent the owner from knowing that the wholesaler is reselling the property at a profit. Although there is no crime in so doing, it is not recommended as it looks deceitful.