1. Market to sellers of distressed properties.
Work your magic to find motivated sellers. If you need help in this stage, let us know. We can steer you in the right direction. We can also help you in the negotiation process.
2. Sign a conforming Purchase Agreement with the seller (download at the Forms page).
A conforming purchase agreement contains the state Realtor Purchase Agreement (with the appropriate boxes pre-checked and the neccessary fields filled in) along with a wholesale-specific addendum that contains very important terms, buyer disclosures, and seller acknowledgements. This addendum has evolved from decades of combined wholesaling experience. It will guide you, protect you (and your license), make you money, save you money, and serve as the escrow instructions.
3. Follow these Photo Instructions (Exterior & Interior or Exterior Only)
This is important! By taking photos according to these standards, you help ensure that we can do the proper due diligence and obtain the highest price possible. We don't want to underprice a deal because we didn't see the entire property. We also don't want to overprice a deal because we weren't aware of various issues (i.e. roof issues, foundation problems, or unusual floorplans).
5. Email us the purchase agreement, photos, and access info so we can do our due diligence.
We will review everything and get back to you, usually within 24 hours. The sooner we receive these items from you, the sooner we can get back to you.
6. We will let you know how much we could probably get for the property and set our joint venture fee.
We are usually pretty accurate when estimating selling prices. In some cases, we get bidding wars and the price ultimately gets bid up. In other cases, we may get a bit less than expected. Overall though, we're usually pretty accurate (plus or minus 5%). We set our joint venture fee based on a number of factors which varies for each deal (see Pricing).
7. If the price and joint venture fee is acceptable to you, we begin the marketing process.
We typically only need about 5-7 days of marketing time. During this time we'll keep you posted on the response rate and any potential takers.
8. If we procure a bona-fide investor and you decide to work with them, then these are the next steps;
1) We sign a Joint Venture Agreement and a Joint Venture Profit Agreement (JVPA - Assignment or JVPA - Double Closing)
2) You and the investor sign the appropriate paperwork (assignment, purchase agreement, etc.) which we'll provide.
3) We open up escrow and the investor delivers a cashier's check (or wires funds) to the settlement company.
9. We follow a detailed list of procedures to ensure a successful closing.
We perform a number of tasks to ensure a stress-free and successful closing including, but not limited to; submit closing requests to the settlement company, prepare closing contact sheets, prepare closing instructions, send final signed contracts to the settlement company, request and review title commitments, ensure the settlement company follows proper procedures, request and review preliminary settlement statements, ensure proper communication, verify scheduling, and more.
10. Closing takes place.
- You make arrangements to attend closing, accompany the seller, and collect your check.
- We obtain copies of the final settlement statement and the settlement company wires us our proceeds.