This article will continue the steps to wholesaling real estate that were covered in Part 1. But before we proceed to steps No. 4 to No. 6, let us have a quick recap on what was discussed in the previous article.

In the first part of the series, we talked about how to find properties that you can place under contract. We’ve also discussed the importance of screening your leads and performing due diligence before making an offer. Now that you have your memory refreshed, let’s move on to the next steps.

4.  Meeting a seller face-to-face.

After zeroing on the property that catches your fancy and conducting some pertinent research, the next thing you need to do is to arrange a meeting with the owner of the house and start the negotiation process. Always remember that effective communication is the key to closing a great wholesale deal so you should consider building rapport with the seller to make it easier for you to negotiate for a lower asking price and convince the latter to accept your offer.

5.  Placing the property under contract

Once your offer has been accepted, you can now draw up the contract that gives you the right to wholesale property. Always remember that you have nothing until you got the house under contract so after you and the home seller ironed out kinks and reached a common ground, have the seller signed a purchase agreement with you. And by the way, don’t forget to include contingencies in your contract so you’ll have more room to breathe in case you’re finding it difficult to find an end buyer. Once the seller inked the purchase agreement, give him or her an earnest money deposit.

Although some wholesalers prefer starting the title work after they have found an end buyer for the contract, it is advisable to bring the signed purchase agreement to a title company right away. According to veterans in the business of wholesaling real estate, starting the title work ASAP enables the title company to order a title search and set a settlement date so you can be ready as soon as the buyer tells you he’s ready to close.

6. Finding potential buyers.

To earn money, you will need to find a buyer for the property. Some of the usual “customers” of wholesalers are their colleagues in the real estate investing business who are looking for bargain properties. This is the reason why aside from marketing, building networks is also important when wholesaling properties. By being part of a local REI club or befriending your fellow investors, it would be easier for you to find someone you can flip contracts to.

So what comes next after finding a buyer? Find out in the third and final part of the wholesaling properties series.