What They Don't Tell You About Wholesaling Houses

[@devai5827]

Here's a simple solution. The very first time you speak with seller, tell them this; I'm a Wholesaler. What a Wholesaler does is just about the same as a Real Estate agent. EXCEPT, our fees come out of the buyer's end and not your pockets. Why am I sharing this with everyone? Because I want people to stop hanging up on me on my first initial contact.

[@ThargyalKungaTV]

BJ Williams slick way to go around it. Will definitely keep in mind. Thanks!

[@poshaMillanbel]

BJ Williams thank you so much

[@monamendiola1]

Thank you

[@devai5827]

Did you miss the term "just about"? I was trying to be short. For example, people who would use labels. So if I were to describe an idiot, I wouldn't say, "He didn't read everything, he/she just wanted to be at the top of the page so they could look intelligent." NO, I don't. I just use the word idiot. So, if I had to explain this to an idiot, I would say something like; the approach of a Real Estate agent and the approach of a Wholesaler are completely different with the same goal of selling the house. However, I'm sure at least 99% of your clients will be more than ecstatic when you explain to them that the fees will be on the buyer's end alone. This will cut out the complications of any negative thinking that the seller may have, it will make you honest, and it will stop idiots from using Real Estate agents to sell their home.

[@monamendiola1]

I get it!

[@shawnclark732]

Funny thing is, I'm a sophisticated seller/investor and yet I actually sold one of my own properties through a wholesaler last year. Why? He had the list of cash buyers that I didn't. He pulled a buyer from a neighboring city that I would never have found. For that he made $10,000. All good. Win win. The buyer was happy too.

[@ApartmentKing66]

Would to God most, if not all, sellers were like you. Experience has shown me that most sellers don't have anywhere near your sophistication and want to get 10 million dollars for a $120,000 house (they know they won't, but they're sure gonna swing for the fences). You sound like you're very easy and reasonable to work with and don't mind others profiting reasonably from the sale of your property provided they can bring something to the table (which is how business works).

[@JohnDoe-fs6lz]

Geesh 10k . Look at that. Everyone happy . Stimulates the economy. Many others get paid as well. Contractors plumbers the list goes on. Gotta love real estate

[@Efrain9120]

my Title companies that I use do "Blind Huds" . The seller never sees the buyer's HUD expenses-which has my profit.

[@MaleahsDiary]

You deserve 1 million thumbs up for sharing this Thanks.

[@ExtraordinaryLiving]

Hmmmm, may be this is the *big secret* that Phil is not sharing here 15:38 in this vid? ;)

[@jacksonbui1056]

And this is on an assignment fee????

[@briankelly8697]

Do you want us all to visit you in jail b/c you posted this ?

[@pablitoescobar9520]

@@briankelly8697 is it illegal?

[@ohhRobs]

Thats why you tell them up front that you're an investor and what your true intentions are. Being honest is key and can get you very far in the real estate game.

[@josephjackson1183]

being honest is great but you need to do some wiggle wordings. For example, Phil said I may buy it or assign it to another investor. This is being honest. You may or may not buy but you may send to another person is being truthful. I think that this is the best way to go about talking to sellers. So in the end, they can't come back and say you said you was going to buy when you told them your plans from the beginning

[@RubberDuckie76]

Honesty is best. That's how a beginner becomes good n builds relationships in different areas

[@denizinan979]

My wife and I started to think about flipping houses and/or wholesale deals; your video was very informative, easy to understand. Thank you.

[@lennong4114]

How has that been so far?

[@denizinan979]

@@lennong4114 Many life changes halted our plans. We may get back into real estate investment some time in the future.

[@stephanierandall1170]

How much money did you pay to start wholesaling?

[@xworkerbee]

This guy looks like Murray from "Impractical Jokers" on Tru TV.

[@HustlersParadise]

xworkerbee LMAOOOO

[@daiirowe1841]

xworkerbee I was thinking the same

[@SPM-tv]

xworkerbee 😂😂😂😂

[@YeekTV_Atlanta]

He looks absolutely NOTHING like him!

[@angelb2412]

So true. XDD

[@freedom_mentor]

Indeed. We love avoiding the two closing approach because it saves a ton on closing costs.

[@robinsonvega1171]

This is great information Phil. Now you do the Assignment contract, do you pay any closing cost?

[@freedom_mentor]

@@robinsonvega1171 No

[@anaelkettari5032]

Hi Phil: I see that, wholesalers have properties all over the USA how do the ''manage their license in each state, in other words how can they have license in all those states?? thank you!

[@freedom_mentor]

Watch this video: kzbin.info/www/bejne/nXaZqKttfMp7fKM

[@UltimateBargains]

There are subtle ways to handle the title seasoning issue, like using an option with a recorded memorandum. You appear on the HUD-1 as a 3rd party service provider "Clearing title cloud" to receive your "assignment fee". You can also have the seller deed the property into an Illinois-type Land Trust, which doesn't break the title chain. The beneficial interest is personalty assigned to the end buyer for a fee, and the trustee then deeds the property into the buyer's name.

[@myempirepro]

Phil still has some of the best videos on this topic. Thanks man. Legendary!

[@freedom_mentor]

What real estate agent? Is the agent representing the seller whom you got under contract? Are you talking about a real estate agent you would hire to help sell your deal? Or are you referring to a real estate agent who would be representing the new buyer who you are selling to?

[@stevenrose5831]

This is just like trading your car in to a dealer. A deal will by low, then sell for profit. The person trading the car in knows this. Yes it pisses you off, but the dealer is a business, they need to make money to. Its the same concept. Great video. I want to get into this stuff someday

[@jarredross6357]

Steven Rose your comment is 3 years old now. Have you taken the plunge?

[@tylerbrian4102]

@@jarredross6357 Now it's 5 years old. I also wonder if he has taken the plunge.

[@actionyear]

@@tylerbrian4102 6 years now. i wonder where he is

[@sethlogan9724]

The year is now 2600 and I'm transmitting this comment off world. The rest of the human race would like to know. Have you taken the plunge?

[@JohnDoe-fs6lz]

Yes the same thing. I know because I have been in the car game for quite some time

[@freedom_mentor]

Depends on how much the sales price is because that will effect the closing costs. The lower the sales price, the better. The only way to know for sure is to have the closing company draw up an estimate HUD.

[@AaronSchwartz100]

Hey Phil, Thanks for the video. So your never actually buying the property but just assigning the contract over to another buyer?

[@Kocht86]

I've heard of a Sellers Side HUD where they don't see your assignment fee's and it saves you from having to do double closing. As long as the mortgage is paid this is said to be legal.

[@KingdomOriginators]

Thank you so much for being real, to the point, and answering ethics in your videos. Much appreciated.

[@mrggszeromoneydownrealesta5788]

This dude SERIOUSLY broke down some serious game and knowledge. Now I know to make sure my title company or closing attorney makes a sellers eyes only Hud and a buyers eyes only Hud to caution myself and be on the safe zone. But you gotta make sure your title company or closing attorney is wholesale or investor friendly and understand that this could blow a big hole in the deal and somebody could back out or flip the hell out at anytime at the closing table or during the transaction....... Thanks for the tip. You need a Part 2 or 3 of this video lol.

[@Illinoiseygovt]

Mr. GG Agreed

[@TheEntreprize]

That's shady, and potentially illegal.

[@puffskoko1323]

Its legit

[@marlenahenriksen9278]

what happens if their is Leon on the house back taxes?

[@ApartmentKing66]

Marlena means: "what happens if there's a LIEN on the house for back taxes?"

[@qjbaker]

Phil, thank you for this video discussing the realities of wholesaling. I am very much aware of the Seller, and even sometimes Buyer concerns with wholesale or assignments fee amounts and for this reason have been thinking to close (all) of my transactions via double closing in escrow. I’m in NY, we are an attorney state with several investor friendly attorneys. I realize there is added costs to this approach, double closing costs and such, but find it worth the elimination of added stresses should Seller/Buyer issues with my fee arise. I try to calculate my fee to maximize profits factoring in these losses. I would very much appreciate your thoughts on my approach.

[@freedom_mentor]

Watch this video too: kzbin.info/www/bejne/nXaZqKttfMp7fKM

[@pathsymartin6456]

This is so true! I have always done two totally separate transactions when I buy, primarily because I like to go in, make the repairs and sell for maximum profits.

[@vivekshivdasani9521]

Once a coin dealer sold me a whole lot of antique coins at really cheap prices because of his ignorance. A few months later I went back to buy some more coins. Inadvertently I let slip out that I had sold all those coins for a tidy profit. (Silly me). Immediately his behaviour changed and I had to leave the shop in a hurry never to return. He was furious

[@ItsJuandaWoo]

Hi Phil, How often do people usually flip out when they find out how much money is made by the wholesaler?

[@freedom_mentor]

Depends on who and how they are doing the wholesaling/flipping

[@AmyBrinkleyblindfaith]

I am about to make my first official wholesale deal with a motivated seller and I just watched this video, and thank you so very much for this. I really needed to hear this training. He is hesitant about a contract and no official buyer in line yet but I see how it may play out and I'm excited. I needed this thank you. I may keep you posted. God Bless.

[@alesiav.4114]

The escrow agents I talked to told me about this issue. You’re the only one I’ve seen mention it on KZbin.

[@angelaroberts4639]

How would one enter into your inner circle? I would like info on if my new buyer is getting a loan.

[@yvenstsimonis]

When entering into a "purchase contract" with a seller... what if you don't find an investor to assign the contract to before the mutually agreed closing date? Are you stuck with the obligation of purchasing the property from the seller? Do you actually need to have your own funds in case this happens? Or is there a way to "get out" of the "purchase contract" if you fail to find an investor?

[@freedom_mentor]

If the contract you use has an escape clause, you can walk away from the deal without the obligation to purchase the property.

[@yvenstsimonis]

Phil Pustejovsky I know you're not a lawyer... but what is the typical standard financial escaping clause that I can use?.... as I am someone only interested in purchasing properties to assign to an investor

[@blitzRuega973]

Phil Pustejovsky i want to sale a distressed house to a buyer but don't know what legal documents i will need to do the deal. and yes i am wholesaling the property,,,

[@UltimateBargains]

To avoid the title seasoning issue when the buyer is using a lender that requires title seasoning, you can get your seller and buyer to sign a "back-up" offer that is subject to your contract terminating, and then assign your contract to the seller (effectively cancelling that contract). Submit your assignment contract to the title company (that's what obligates the seller to pay you), along with an "Assignment Invoice" that requires the seller to pay out of the proceeds from closing the back-up offer (submit the invoice to the title company), as a third party service provider. The title company now has your assignment contract (signed by the seller) and an assignment invoice, which provides full compliance with RESPA regulations and you are paid at closing.

[@thatarkguy]

uh...no. just make sure the buyer works with a lender who does not require seasoning.

[@freedom_mentor]

Patrick Britton Patrick is completely incorrect. There are plenty of legit lenders that 0 days title seasoning. He just doesn't know any of them.

[@UltimateBargains]

That's not what he said. You don't know any legitimate lenders with 0 seasoning days, therefore you assume there are none. What's your definition of "legitimate lender" ?

[@shun451341]

I need your expertise on this process too

[@freedom_mentor]

This is a VERY detailed subject matter that almost no one knows the real truth...but I do :) Doing two closings is NOT illegal, however, as to not violate RESPA laws, each transaction has to stand on its own two feet, meaning you need transactional funding in the middle. If you are buying a short sale and then trying to resell immediately, that adds another layer of complexity. I spend a ton of time managing and coordinating these deals. I also keep my title companies close to the vest.

[@DiEdraStinson]

Ok, Phil. I'm opting for a double closing and making less money to save my life. Is the seller at the second closing where he sees my profit? Or is he only present at the first closing where he gets his check and leaves?

[@calvinrichmond]

Good evening Phil, question! can you wholesale a home with a Tax Lien on it? Thanks Calvin

[@freedom_mentor]

Yes

[@Inksplash52]

I watched one of Phil videos last week and was hooked because he gave out valuable info that most real estate mentors only give you just a little info to buy their course. This is my second video and I definitely subscribe this time and signed for a course 😁

[@acejtv9258]

What does it mean to get it under contract for 50k? Are you saying you take control with like a lease option then you are paying then sell when you can?

[@sampopyk]

Your content is unmatchable compared to those who charge for courses. People like myself who are just starting out and don’t have a lot of $ greatly appreciate it!

[@freedom_mentor]

My daily involvement in my students deals usually shocks them. They continually ask themselves, "How on earth does Phil have so much time for me?" But I also have a wonderful team too. If you can get in, we're the best mentoring program for real estate investors. Our biggest issue is that we aren't very big so we have to turn away a ton of people, for a bunch of reasons. I hope you make it through :)

[@floydmcguirk6721]

Phil Pustejovsky im already goiv to than merril course i just started here is my cell phone number 19513137459

[@user-ol2mk6tg6p]

Phil Pustejovsky. is your office still in Florida area. need a physical mentor hands on.

[@TheJandiFam]

Phil, Wanted to say thanks for making these videos. They are very informative. I do have a question and wanted your opinion. I've worked in real estate as an appraiser for over 10 years and am looking at buying my first property to flip and it needs quite a bit of work. I'm partnering up with another first time investor and both of us have limited time to devote to the rehab. Should we rehab it ourselves on our spare time to learn the most or should we go with a contractor? Thanks

[@LexDiamonzz]

First of great video and you taught me something new today, thank you. I do have a problem understanding the double closing part of your video at about minute 12:55 you start to talk about it? Please help me understand that Phil.

[@freedom_mentor]

Two closings held within a few hours or days of each other.

[@KeepingItReal]

good video can i ask how money it would cost to do the two closings because i rather do that to prevent any headaches

[@freedom_mentor]

+George Roman Ask your title company what closing costs would be for your particular transaction and then double that amount.

[@Msmlr5719]

Have you ever came back to Nashville to do a workshop? I went to a workshop that was nothing but 2 hours of them talking about what you will learn in the workshop that you pay for. I have learned so much more from your videos sitting at home.

[@freedom_mentor]

I rarely do in-person workshops anymore. KZbin is so much more efficient. I do go back to Nashville quite often since my parents live there. If you watch all of my KZbin videos, you will learn more than you would at the paid version of that workshop they were trying to sell to you.

[@milliehuggs]

Thanks for this video. I want to start and I've been told since I'm at ground 0.(No $), wholesaling is the best way. I'm petrified I do the wrong thing though, how does one just jump in?

[@freedom_mentor]

Take this free video course: courses.freedommentor.com

[@gregriba6896]

Hey Phil what do you think of Dean Graziosi?

[@futureniche]

Phil, what about some type of non-circumvent agreement whereby YOUR buyer doesn't go around you?... happens everyday by investors, attorneys, bankers, et al.

[@freedom_mentor]

Watch this video: How to Get the Deal Under Contract with a Risk Free Offer Skip to the 2:00 minute mark. There's your answer.

[@bcooltrice]

Thank you so much for this video. I am a beginner and have been listening to you all week on your free course. I decided to go to our Reia meeting just a few days ago and heard that whole selling was great for a beginner. I had my doubts and questions so I said...."I will see what Phil says to this" and oh boy! I am so glad I did. By the way, I purchased your book a year ago on kindle and never read it...(I am reading it now of course) you are so awesome! Thank you.

[@freedom_mentor]

I would argue that wholesaling is as hard as anything you'll ever do in real estate. The easiest way to get started is, assuming you have the money or the credit, to buy a house, fix it up and sell it.

[@kamizubi]

Awesome tips Phil! What about dong the "Seller Side Only HUD" haven't done this but just got to know about it recently. In this method seller only sees his side of the transactions ie the selling price, while the buyer only sees his side. The BIG saving that the closing costs of the double-close are avoided.

[@kirilstawrew]

And another benefit: since you have only one transaction (the sellers sells, represented by the "middleman", directly to the buyer), the closing costs may be reduced.

[@thetiffanyfrank]

Do I need to be pre-approved or show a proof of funds to get a property under contract?

[@Monumentil]

Hi Phil, I was wondering how is best to approach a real estate agent to take care of the house once i've secured the deal with the seller, thanks ;)

[@sg1345]

Phil Pustejovsky who pays for the assignment of contract fee? The end buyer or wholesaler?

[@marvinz122]

Hello, Do banks consider short shales if the property is up to date on payments? Thanks

[@freedom_mentor]

Sometimes

[@freedom_mentor]

Nope. Using LLC change of ownership techniques only work when the new buyer is another investor who fully understands the ramifications of such a move and many don't like going that route for the hassles of taxes and corporate managerial responsibilities.

[@Unityframe]

What are the actual steps after finding a great deal and a buyer? Do I buy it with a loan then sell it right away before the house closes?

[@eddiematthews8666]

hey buddy how are you??? hey where do you get the contracts for wholesaling houses? ? ? ? ?

[@m6biggz630]

@phillpustejovsky Hi Phil, i have no experience what so ever but your video is very informative so I understand the idea of wholesale now but do you have to have a real estate license to do this kind of transaction?

[@freedom_mentor]

+M:6 Biggz I have a video on that question too : kzbin.info/www/bejne/bae2apWXqNprq8U

[@grahambj]

a DOUBLE CLOSE will take care of that issue

[@HustleTownUSA69th]

Exactly

[@projekmedia3605]

@@HustleTownUSA69th exactly. i'm doing my research and want to try in montreal, canada

[@Fabian_zerpa]

Or use BLIND HUDs!!

[@jamesdixon5990]

Do you have any videos that explain how to get the home under contract or how to assign it?

[@freedom_mentor]

Absolutely! In fact, this free video course takes you step by step through exactly what to do: courses.freedommentor.com

[@sandyosa3175]

very informative i must say. when you enter into a contract with the motivated seller, are you obligated to buy the house at the end of the contract or u can walk away if you don't find a buyer?

[@freedom_mentor]

+sandra osayi No (if your contract is written correctly)

[@metroprocarpetcleaning309]

Good stuff. A question; What's the closing cost differential when wholesaling a deal via an assignment as opposed to a double closing?

[@freedom_mentor]

Metro Pro Carpet Cleaning Wholesaling via Assignment: $0 Double Closing: Depends on the sales prices, but usually several thousand

[@metroprocarpetcleaning309]

Phil Pustejovsky Thanks I just thought there would be some costs associated with using the assignment method eg; assignment fees and an attorney to look over the signed assignment paperwork. Am I wrong?

[@freedom_mentor]

Metro Pro Carpet Cleaning There's always a cost for not knowing what to do.

[@MrBxhenry]

what if you can't find a buyer by the end of your purchase agreement to assign it to? do you back out or do you need to be ready to purchase the house on your own?

[@freedom_mentor]

If you have the contract written correctly, you can back out without the responsibility of purchasing.

[@MrBxhenry]

thanks thats what I figured but was unsure. thanks again the videos are really great.

[@nathgee6501]

Hey, love your work. Whats the go when the person you had lined up to buy, suddenly decides they dont want to buy anymore and you cant find another buyer?

[@freedom_mentor]

Keep their non refundable earnest money

[@hassanecamara2709]

What’s the best way to bring the buyer at the property while wholesaling without it seeming like you’re already making profit

[@freedom_mentor]

While the seller is NOT there.

[@justinmitchell2213]

Hi Phil thanks for all the great vids - just got 5 properties under contract, each have a mortgage thats gonna put them nearly upside down - is there a best way to get the owner to accept less than the mortgage balance? Thanks again!

[@freedom_mentor]

Better yet, figure out how to pay the seller the mortgage balance and still make a profit.

[@Cooter-Clapper]

Question: if placed under contract can the seller list else where at market value? Or vice versa; can you take a House that’s on market on contract for lower listing price to then sell?

[@freedom_mentor]

Depending on how the contract is written, a seller typically can't sell to anyone else once they have signed an agreement to sell to you. However, you as the Buyer can get a deal under contract and they resell it while it is under contract.

[@JoeNum83rz]

what about using a land trust to do a deal instead of a double close? Can you just sell the land trust to the buyer?

[@freedom_mentor]

First, you would have to buy the property and transfer title into the Land Trust before you could sell your interest in that Land Trust. Sure, you could do that. But it wouldn't be wholesaling. That would be buying and then reselling.

[@skiddy808]

@7:40 so would an alternative to. that be a double close?

[@skiddy808]

sorry I didn't get to the end of the video aha 😅

[@hakeemm1003]

It’s closing day and the Real Estate investor sign the contract and is about to give you the money but you don’t have the actual keys to the property to give him because you don’t meet with the owner till hrs later. What do you do?

[@freedom_mentor]

The keys should already be in a lock box at the house. Give the investor the code to the lock box. That's what we have done for 15 years in this business.

[@kencincyUSA]

good info but a little confused. I watched this video "what they don't tell about wholesaling" and also watched your other one about Flipping properties (rehab to sell) where you discourage the profitability of rehabbing and suggest wholesaling, however, on this video, not so much... So is the point to GET EDUCATED? so we don't get caught between the rock & hard place and to know our options or is there another method you prefer? Thanks for the info.

[@freedom_mentor]

They compliment each other :) Watch them both again. It'll "click".

[@robotinthebrain]

What is so unethical in selling for $7000 more ? If you are just better in selling, why not ?

[@powerprofitsuniversity7847]

AMEN

[@narcis730]

that's why he calls them "irrational"

[@cjzanders5430]

What would it have mattered? The guy he's assigning the house too is going to make even more money, and the number he agreed to was fine with him. Not worth going to jail over.

[@cjzanders5430]

***** - That refutes logic, because an investor uses the same disadvantages of the seller that a wholesaler would. A wholesaler has just as much emotional for the seller as an investor does. Just because a wholesaler gets his check at closing and a fix and flip investor doesn't means absolutely nothing because both are standing to profit. That's it. 9 times out of 10 an investor is making 5 times more than a wholesaler would.

[@CALISUPERSPORT]

It's not unethical per se but the average person is very naive when it comes to selling real estate. They think investors and real estate agents just list and then collect commission 3 weeks later. So to them you're not doing any work but you're making thousands off their property. It's partly an emotional thing.

[@jrm1992jrm1]

What I don't get about wholesaling is how do you keep the "buyer" from just cutting you out altogether? I.e. the "buyer" checks out the home, they offer the "seller" more cash than the wholesaler?? After the seller ends the contract of course

[@freedom_mentor]

Record a Memo and they can't cut you out.

[@uso_teej]

Hey Phil. I know I'm watching this video a bit late. But I'm trying to get started on wholesale housing here in Hawaii. I know a ton of people here in the islands that are trying to get rid of their houses. Any tips or advice on how to get started. I found your video very clear and detailed. Hope to hear your response soon. Mahalo.

[@freedom_mentor]

Aloha! You can definitely apply creative investing strategies in Hawaii. Take this free video course to learn more: courses.freedommentor.com

[@j10e5w23]

Great video Phil. I want to start small with a deal from a out of state seller (landlord) who wants to sell a small house for $8-10k and it and be resold at $15-20k. Should I get a broker to find a cash buyer for $15-20k so that I begin to assemble a team for other deals and then put the property under the wholesale contract?

[@freedom_mentor]

Put it under contract first. Check out this course which will walk you step by step through what to do www.udemy.com/real-estate-investing-flipping-houses and use the coupon code "freedommentor" to get it for free

[@MrBrianDuga]

Wow, I had signed up last night for one of those 3-day real estate investing seminars. At the free seminar, "Reverse Wholesaling" was the buzzword. They never mentioned this risk you outlined here. Thanks for helping me to tip the scales and just get a refund on that stupid thing. So far I like your message.

[@sampriddy8005]

I'm considering wholesaling houses but I'm interested in finding out if I can get out of the buying contract if I can't find a buyer, aka assignee. So, I understand that the way to do this is to put a house under contract (so at this point I am about to buy their home) then, sale that contract to someone else....probably another investor. But, what happens if I can't get someone to buy the contract from me? Maybe I already arranged for a buyer even b4 the contract existed...but they drop out. Am I stuck with the house or can I get out?

[@freedom_mentor]

+Sam Priddy If you use the right contract, you can get out anytime you want.

[@freedom_mentor]

Check out my video "Is Flipping Real Estate Illegal?" Your plan would move that POA investor into the realm of operating as a real estate agent without a license, which is highly illegal. The only two people who could execute your approach would be licensed agents and licensed attorneys. Both of which wouldn't need to do a POA if they were licensed. In the US, the Govt requires people be licensed to collect commissions on real estate.

[@Whattastoryeh]

Not that this clarification is really needed, but an attorney doesn't need a real estate license to execute. I know exactly what you're saying, just throwing that tid bit out there because I want to participate :)

[@sthsidekid24]

Phil, how do you determine the amount of profit you want to flip the property for? Do you have a formula or do you go on a case by case basis?

[@freedom_mentor]

Case by case basis. Every deal is different. Formulas can really restrict an investors success. Each deal is like a snowflake. Everyone is different.

[@sthsidekid24]

Phil Pustejovsky Thanks!

[@ivanstoyanov5790]

Phil, very educational. I've watched other videos as wells read some books on real estate, but I am still not quite clear on the exact mechanics of wholesaling. As far as I understand, when you purchase a distressed property, you put a clause on the offer, which allows you to pass it to another buyer (if accepted of course). Then you find another inventor and you sell your position in the contract to him, so he goes to closing and closes instead of you with the seller (under contract I understand the accepted offer). At which point do you get your money from this investor buyer? At the time when you meet with this investor and reach an agreement on selling your position in the contract for a fee (l assume that you sign some sort of a separate contract with him) or at actual closing (the same way real estate agents get their checks). Wouldn't this investor buyer like to see the property, before he buys it? How would you show him the property when you still do not own it and the seller probably still lives there? Why would the seller want to show the property to another buyer when he has already shown it to you and he already has signed your offer. From his perspective the deal is done, and he is just waiting to close. If the new investor buyer can not see the property, how would he buy it (in the right mind) with site unseen? None of the books and other sources that I've seen so far go into detail on how this transaction actually occurs. Can you shed some light? Thank you in advance.

[@freedom_mentor]

Take this free course: courses.freedommentor.com

[@victoria_dennis]

So do you need a real estate license for the double sale and you dont need one for the assignment?

[@freedom_mentor]

Watch this video: kzbin.info/www/bejne/bae2apWXqNprq8U

[@ek07305]

What contract do you use and where can I find it? Can you use any wholesale contract template online for binding agreement?

[@freedom_mentor]

The contracts my Apprentices and I use have been custom built and fine tuned with tens of thousands in attorneys fees over the years. They are not shared with the general public.

[@webuyallcarsllc.8132]

hey Phil great video I'm new to wholesaling and I have done some deals already with an investment group. this deal in particular I am doing on my own. a to b contract is done already and title work is in process. I have found an investor all cash to wholesale the deal to who .. what contract would I use to assign it to him? it can't be an assignment contract because then he would know my assignment fee. I want to double close it because I'm making a decent amount of money and would rather not have him or the seller know how much I am making.. thanx for your help

[@freedom_mentor]

+Eddy Duvall Sign a new purchase contract with you as the seller, with the new investor all cash buyer. And then schedule two separate closings.

[@SiyabongaNgcoboLIVE]

wow, i love your videos and i watch them on a constant bases, im from South Africa and it would be amazing to find out if creative financing deals work. on a couple of occasions when i ask banks most of them think im a mad man or im trying to rob people when i ask for help. As regulation here is different compared to the USA. i would love to get your mentorship and implement what you teach.

[@dntn8576]

Hi Phil I m from Miami. Do you need a license to flip any house or make wholesale? Thanks for your video 👍🏼

[@freedom_mentor]

+Fa bio This video answers that great question: kzbin.info/www/bejne/bae2apWXqNprq8U

[@MrPotty1982]

Phil I love your videos I've been watching them and a few others but I have some questions I'm still not sure about maybe you can help. Do I need a licence for doing any wholesaling and how many can you do a year before the government will look into you for capital gains taxes? Also the money you make does this have to go into another property in 180 days. I'm wanting to do this so bad it's like my dream. Any advice would help thank you.

[@freedom_mentor]

(1) This video explains the legality of wholesaling: kzbin.info/www/bejne/fJzToXhuqq2Gr8U (2) Short term capital gains and regular earned income have the same federal income tax rates. This video helps you better understand real estate investing and taxes: kzbin.info/www/bejne/rJyZXniOnNiSoNE (3) You're referring to a 1031 exchange, this video explains more about that: kzbin.info/www/bejne/g6PFdp6uqKiEj68

[@Betterdailyy]

What would you recommend a beginner to start ?

[@freedom_mentor]

Start here: courses.freedommentor.com

[@Zachari94]

I'd like to know the details of each step of the wholesale process, such as how/where to get the contracts, what all is involved in the closing deal. I've never purchased a house better but I want to learn as much as I can before I do purchase my first

[@freedom_mentor]

Take this free video course courses.freedommentor.com

[@joshhorn1389]

So what happens if you get a place under contract, is there a time limit you have to sell it by? Because I imagine if I tell someone I'm buying their house they'd probably want their money right away. So if I get a set amount on the purchase price, how long do I have to sell it? and if I can't in the time frame, what happens?

[@freedom_mentor]

The length of time to close is specified in the contract you execute with the seller. It's usually 30 days. And the contract you sign with the seller would stipulate what happens if you don't close in 30 days.

[@joshhorn1389]

thank for the reply Phil, I am not in the process of selling anything yet just doing my research. So can you give me an example of what you would put in a contract stating what would happen if you don't "buy" it/assign to another person?

[@MaleahandMel]

PLEASE HELP.... Phil when just starting out in real estate investing since a LLC isn’t recommend by many do you know if it’s legal to put a business name (Ex: Property Investments) on my marketing materials such as business card and flyers instead of just my real name? Off topic question.... Mel from Texas

[@mervsnsd2be]

Is there a way to back out of a contract if you do not find a cash buyer

[@freedom_mentor]

If you have written your contracts correctly, you can.

[@lockhamj]

hey Phil, so if the seller gets upset can that legally terminate agreements within the contract, or will it be too late

[@freedom_mentor]

+lockhamj Does someone's emotional state have anything to do with the contractual agreements of a written agreement between two parties? If that was the case, then banks would never be able to collect on their loans because EVERYONE gets upset before they send a payment to the bank :)

[@latoyagriffin1410]

Would it be better to wholesale bank owned property? Also, how are the feelings on the other end...from the buyer? How do they feel about paying more than what the seller actually wanted?

[@freedom_mentor]

Banks make that very very very difficult. It's almost impossible to consistently wholesale bank owned properties.

[@afrikanawakingneez]

ok as a beginner when you get the owner under contract sign on the property. how long can it take before you would have to give them the money for this property

[@freedom_mentor]

Open Thots Depends on how fast you find the buyer, what kind of buyer it is and how you structure the closing

[@afrikanawakingneez]

what different ways can you structure the deal? Could I say in my contract we close in 30 days or less?

[@freedom_mentor]

Open Thots That answer is best described in this video: kzbin.info/www/bejne/ima8g2Swg52Ap8U

[@MrCarlito86]

Hey Phil great book great knowledge wanted to say thank you. Question if i buy the property cash and 2 weeks later sold it for a quick nickel like you said. Im going to run into issues with the title?

[@freedom_mentor]

+Carlos Carlos Depends on the type of loan the buyer is getting.

[@princezaahir]

Hey Phil this was really great. I had been to a couple of wholesaling seminars and as knowledgeable as the guys were I had the feeling that the whole picture was being withheld. I myself am a teacher and I am looking for a real estate teacher that knows both content and understands pedagogy (how a student received and processes information) I am going to watch more of your videos. I like you no-hype, bare bones, straight to the point, realistic style of disseminating information. Looking forward to learning more form you.

[@rodolfovarela7513]

Phil, i have two questions. once under contract, how long do you have to find a buyer for the house? also what if you don't find a buyer?

[@freedom_mentor]

The length of the closing date, which depends on what you put in the contract. 30 days is typical. Assuming you have the correct out clauses in your contract, if you don't find a buyer, you can walk away and the seller has no recourse.

[@rodolfovarela7513]

Thank you for your fast response, Phil! i am new to this, and definitely learning a lot from you.

[@raulvega1490]

when you're assigning it or flipping it wholesale to someone else do you have to disclose to them that fact. as follows I am a seller. Or I'm a wholesaler. How would you inform the back end buyer your position on a structured deal like this. never done a deal getting ready. thank you ahead of time for answering my question

[@freedom_mentor]

I tell them the truth. "I have this property under contract, I am not the legally title holder yet"

[@hagitamper3197]

HI PHIL nice video thanks .i wanted to know what your apprentice program is offering ?

[@freedom_mentor]

+hagit amper Find out more here www.freedommentor.com/apprentice

[@built2grind48]

I have a question Phil... A few months ago I was extremely ready to hit the ground running and get into wholesaling. To come to find out, where i live in California(and most parts of California) wasn't a hot spot for wholesaling. What do you suggest at this point? I gotta start some where right? What would your approach be? Wholesale in other states I never been to?

[@freedom_mentor]

+Drew Lago This video better explains: kzbin.info/www/bejne/bmHTomp4ga-YjaM You have made the classic mistake of thinking the grass is greener somewhere else. There are diamonds in your own backyard. We flip deals all over California. I have a student in the Sacramento area doing a retail wholesale today and making over $37,000. I just got done reviewing the closing statement.

[@built2grind48]

+Phil Pustejovsky Wow lol thats funny because I'm from Sacramento but going to move to LA and still have the burning desire to do Wholesale Real Estate. Even if I moved to LA would doing Wholesale still be a good move?

[@freedom_mentor]

+Built 2 Grind This business has nothing to do with location and everything to do with how you do this business. Drop me out of an airplane anywhere in the US or Canada and I will knock it out of the park. It's because I know exactly what I am doing. You need to get there too. Especially in today's market that is so saturated with HGTV inspired wanna-be investors.

[@DLdaARSUN]

+Phil Pustejovsky where do you suggest I start back so I'm stepping in the right direction?

[@built2grind48]

Phil Pustejovsky Sorry (up top) thats my other account I responded on. Didn't realize I was on that account.

[@gadgetsorgizmos8124]

Great video, learned a lot. Had a question. Do you have a good closing lawyer or know of one in AZ that you trust or know would work with these kinds of deals? If you do what would you want for that kind of info? Thanx again

[@freedom_mentor]

+gadgetsorgizmos Driggs Title

[@gadgetsorgizmos8124]

+Phil Pustejovsky thank you. one more question. What is to stop the investor to contacting the seller directly and cutting the wholesaler out of the deal? After they know the address can't they just look that info up? That was 2 questions, ha

[@freedom_mentor]

+gadgetsorgizmos Everyone has more than one question in real estate for me :) You need paperwork that is correctly executed and recorded against the property to ensure you don't get cut out of the deal.

[@mystic1p]

Very educational video. I have been wanting to get into Real estate fora while now, been to a few seminars from guest speaker from tv home shows. How does one even start,no money down, no close friends or family are into real estate info. Please help. I live in Montreal quebec

[@freedom_mentor]

I've got a video just for you Real Estate Investing for Beginners

[@mystic1p]

Thanks for your reply.I have watched 2 or 3 of your videos so far. I will check it out this one as well.

[@88MrBeta]

Thanks Phil for explaining that secret! I'm just getting starting and was not aware that the seller may feel being "leached on" so to speak. I appreciate your honesty, enthusiasm and sincerity in explaining this topic. I would like to join up with your inner circle of mentees after I starting making money in this business.

[@michaelarmstrong734]

Thanks phil. how do you structure a subject to deal when wholesaling?

[@freedom_mentor]

This video describes how Subject To transactions are structured How to Buy Real Estate without Cash or Credit

[@michaelarmstrong734]

thkz phil

[@benjaminfitzer3179]

How do you do the first closing without bringing money yourself? You have to buy it and then sell it to someone else in the second closing. There must be a trick to that?

[@freedom_mentor]

There are several ways to conduct the closing without requiring the wholesaler to bring any cash to the closing.

[@JoeTheWrestler96]

Phil im in college right now and contemplating if these 4 years are worth it. I am very interested in real estate, especially wholesale. my question is, what are some tips to find buyers quickly so I can sell more and more properties?

[@freedom_mentor]

+Joseph Remington kzbin.info/www/bejne/d5W3mZ2NbpmUY9k

[@danielvalizadeh5490]

Does this strategy of wholesaling houses work in the UK?

[@beachgurl454]

Regarding double closes - wouldn't the seller see how much it sold for in the public records after a few weeks has passed though. If the seller sells to you for $50k, you sell it for $55k, and the seller checks public records and sees the house sold again for $55k, he knows you profited. Someone insane enough to get upset about wholesalers making money might be insane enough to do a simple Trulia search in a few weeks after it closes when you sell it right?