Picking up where Part 2 has left off, this article will further discuss the steps to wholesaling properties. After meeting with the seller, placing the property under contract, and then finding an end buyer for the contract, here are the things that you should do to complete a wholesale deal:

7. Qualifying a prospective buyer.

After finding an end buyer for the property, the next thing you need to do is to prequalify that person. Before you finalize an agreement with the buyer, it is important to check if that person has the cash or line of credit to purchase the property. To do this, you can ask the buyer to submit a proof of funds or a pre-approval letter from a lender if he intends to use financing for the purchase of the property.

8. Signing a contract with the buyer.

Once you have ensured that the end buyer is qualified to purchase the property, the next step to wholesaling real estate is to sign a sales contract or an assignment agreement with the buyer. At this point, you have officially transferred the right to purchase the property from the seller to your chosen end buyer. Don’t forget to collect a deposit from the buyer once you have drawn up a contract as it can help you determine if that person is indeed serious in seeing the wholesale deal through.

9. Submitting the purchase and sales contracts to the title company.

After ironing out kinks with the end buyer, you’re now one step closer to completing the process of wholesaling a house. The next item in your itinerary is to submit the contracts – the purchase agreement that you have previously signed with the original seller and the sales or assignment contract that you have drawn up with the end buyer – to your title company. This will let the company know that a different name will be written on the property title. Once the title company are finished going over the two documents, a settlement date can now be scheduled.

10. Closing the deal.

On the settlement date, see to it that the buyer signs a purchase agreement with the original seller. After the signing process and ensuring that the deal has been closed, the buyer is expected to give you the assignment fee you’ve both agreed on during your meeting. Finally, you have now completed your first wholesale deal.

Wholesaling properties can be a lot of fun. Not only it allows you to earn quick cash with minimum risks, it also gives you the opportunity to build your confidence as a real estate investor.