Wholesaling Houses and Using the Right Contract

Hope you are having a great week! I am actually out of my home town and up north in the New England area. Even though I am up here my wholesaling business continues. My virtual assistant is still taking calls from motivated sellers, my direct mail campaigns are still going out, and I am still attempting to flip some of my wholesale deals to my buyers!

On another note, My father-in-law is a pretty big time farmer in this neck of the woods. It is really cool to see his business and how he has made it into a really successful farming business. One of the ways he did that was by establishing a great name for himself in the area. If you ask anybody up here if they know who Gary is from Gary’s farmstand they will always smile and say “Oh, yeah Gary, he is a great guy!” The main purpose of my post today is not talk about my father in law but take the principle from it. Make sure you treat people right in your business and you will build a great name for yourself and start getting wholesaling business from word of mouth. Hey, and guess what?? That type of business cost ZERO marketing dollars!

Ok, now to the main idea of the post. Have you ever wondered what type of contract to use in your wholesaling business? I mean there are so many right? All of the different real estate investing courses on wholesaling houses have various forms that range from 1 page to 5 pages. So which one do you use?

One side of you thinks that the more a contract has on it the more professional you will appear. You think that if you show up with a one page contract the seller is going to laugh at you and say “HA, what real estate investing course did you get that one from?” You expect me to enter into a contract to sell you MY house on a one page contract that looks like you typed it up in the last 5 minutes?!??!

If this is what you think is going through a motivated sellers head, you are wrong. I have dealt with all types of motivated sellers in my wholesaling business. One of my most recent wholesaling deals was involved with a very sophisticated seller. (We will talk about the different types of sellers that you will encounter in your wholesaling business so stay tuned!) In fact this guy is a financial planner. They needed to sell their house because it was in probate (Did I tell you that probate investing is a great way to make money wholesaling houses?).

I have to admit to you that I did feel a little nervous with my one page contract. But get this….He actually preferred the one page contract over the official state contract. He said that it was a lot easier to understand and everything was broken down in a nice easy format. He even brought it to his real estate attorney and he said the same thing!

Since I have been wholesaling houses, this is pretty much the story all across the border with motivated sellers. From the sophisticated seller to the seller to the unsophisticated seller they want a contract that is easy to understand and does not have a whole bunch of legal jargon that you need a team of 10 lawyers to interpret!

If you have read this far, you are thinking,”Ok Alex, give me the dang contract!” LOL. Well unfortunately for legal purposes I cannot give you the contract that I use but I can show you where I got mine. It is the same one in the Real Estate Voodoo and Virtual Wholesaling course.

You can get contracts for wholesaling houses on line for free but why not use one that has proven to be successful? Whatever contract you choose to use I wish you the best success in your wholesaling business.

Please comment and let me know what you are currently using in your business or if you have any questions about contracts or wholesaling houses in general.

Till next Time!

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  • Very true on the contract. Shorter is better, especially when dealing with the 72yr old, LOL. Shorter has always worked best for me.

    BTW check your email, I sent u a FB msg.

  • admin

    Hey Steve thanks for the comment. I actually use a little variation of the postcard script found in virtual wholesaling depending on the situation. When in doubt you should stick to the script is what I say. If you are dealing with a motivated seller they will want to talk to you and leave a message.

  • Hey Alex, Just finish reading through your blog. I’m a wholesaler out of Florida(Jacksonville by way of Miami). It’s always good to see other wholesalers doing well. I wanted to ask you, is direct mail your your only marketing method to sellers as well as buyers? I know being a top student of Mr. Chico you must follow his teachings to the letter.

  • Berry

    Hey Alex, I’m putting my system together to send out my first mailings. What’s your advice on beginning with my local market versus a virtual one that I have in mind? ads and disads? I’m concerned I may get a little bogged down in the minutia and try to do it all myself if I begin locally.

    Also, for a data provider do you use Realquest Professional? I didn’t want to sign a year contract but 1000 downloads on Listsource is going to run 500 dollars right there. Any help would be great. Thanks

  • Berry

    Do you think I should start my wholesaling business with my local or a virtual market. Local market is fairly stable but not that big, about 100,000 people. In your experience what would be the advantages and disadvantages to starting with each. I’m planning to use one of Chico’s systems.

  • admin

    Hey Jeff I think you should at least attempt to stay in your local market. You are the most familiar with your local market and know which areas sell and which ones do not. I also reccommend getting out and talking to some sellers in person so that you can get a good feel for the way sellers react to what you say. Then when you get better at it you can try to stick with the phone. I use realquest in my business because I can pull records every month in addittion to absentee owners such as free and clear….

  • admin

    Hey Erby I use direct mail to both buyers and sellers…..Eventually you will build up a steady pool of repeat buyers but it is always good to market for more. One thing I do is put a propery under contract and then mail to those who have bought a property in that exact area to find new buyers. It works pretty well.

  • Berry

    Thanks Alex, what do you think about sending out my first mailing to absentee owners?