Hi, I'm evany Caldwell with Rei investment society and we are going to kind of discuss in detail wholesaling, virtual wholesaling. So I know by now you might have watched the video too or read a download or saw something on YouTube, whether it was by me whether it's vireo investment society, whether it was on any platform, but I'm going to break it down to you about real estate wholesaling, what is wholesaling? And then what is virtual wholesaling. So in short, real estate wholesaling is basically you have a seller, that distressed seller, motivated seller, absentee seller, whatever you want to call them, they're going to be let's say seller a, we're going to label them as a, there's B, I'm B, I'm the wholesaler I am the liaison. I'm the marketing coordinator. I'm the person that's putting everybody together.

Because remember, depending on what level you're in and wholesaling, you may not have a real estate license. So with that being said, you're not selling a property, you're selling a piece of paper and you're selling your interest in our property your equitable interest. So, remember evany is the wholesaler which is the evany also can be considered an investor. Why? Because evany which is the B person is going to put a contract with the motivated seller, the absentee owner, the distressed seller, which would be a person a Okay, so Person A has a property that they want to sell to me. For $50,000 me, Mrs. wholesaler I took a look at the property based upon my comps my CMA comparative market analysis, I see that the property is worth as his keyword is as is meaning as the current condition that is in $100,000.

So as is if it's worth $100,000, and this distressed home owner, which is seller a wants to sell the property to me, for 50,000. I'll be a fool not to buy it. However, I'm not in the business to buy properties. And also, what if I really don't have any money to buy these properties? What am I supposed to do? So here's what I'm going to do.

What I'm going to do is get a contract together. In my contract, I'm going to have every type of little due diligence clause to protect me to others. Allow me to actually have an opportunity in time to fine see an end buyer. And that end buyer is usually an investor, a flipper who's looking for a good deal. And they are generally looking for good deals that are not listed on the MLS Multiple Listing services. And I explained why that that looking for those deals later without jumping around.

Okay, so now on my contract because I have no money, I need to stall time to come up with money for this property. So now I tell the seller, I'll go ahead and buy this property from you. For $1,000 with earnest money right to hold it is my deposit or 500, whatever you're comfortable with, okay? Remember, it's not going to be your money, but this is what you're putting on. The contract. So you're going to put $500 or thousand dollars earnest money on a contract.

You're also going to put on it as your due diligence being 14 days, 21 days if they tell you seven days fine, but the fact is you want your due diligence period 14 to 21 days. Here's what you Mr. And Mrs. Future wholesaler is going to do because this is what I do as a wholesaler and a trainer. So what I do is during that time, you take that opportunity to go ahead and start looking for your end buyer which is see you're still be you're going to look for the end buyer. How are you going to look for the end buyer, you're going to do all the type of marketing you could possibly think of whether is Craigslist, whether it is your reputation that you build online, you are going to start finding in buyers Whether you have to put out bandit signs that I have properties, I have a three bedroom home two bathrooms in need of rehab has a lot of equity into it worth $150,000 for only $60,000, whatever you need to do, this is how you're going to get your end buyer.

And there's another section on how to market for advice. But right now we're talking about wholesaling, putting the contract and the parties together. So now during this due diligence period, your ultimate goal is to stall time for two reasons. One, a smart wholesaler, especially if you're learning the business, you're going to go ahead and still get your three contractors to the property. I get it that you're not buying the property, but your reputation is everything. An investor who's been in this business for a long time.

They need to know and want to know, believe it or not, you're not going to, you know, sucker them, you're not going to take advantage of them and you have their best interest. So as a wholesaler, you look extremely experienced when you go in, given a in buyer scopes of work and saying I had three contractors to go out to the property. Here are two scopes of work based upon each contractor. It averaged around $25,000. I'm not telling you to use these contractors, because that's not my place. I'm not vouching for these contractors.

What I'm letting you know is I did my due diligence. Now here's another thing, that due diligence period yes is to get the contractors in per se, it is because you want to come off, you know with the environment you see that you have a full package. You got a CMA a comparative market analysis, you know How much his property is worth, you know how much work needs to be done to the property and you already have an idea of how long it's going to take to get this work done based upon your contract is so you future wholesaler or trying to become a more seasoned experienced wholesaler looks like you are the king and queen of wholesaling. All investors gonna want to do business with you, you're not gonna have to keep looking for a lot of investors when you start doing good deals and packaging your deals properly.

So now what happens is, remember, that seller wanted to sell me the wholesaler the property for $50,000 as is the property's worth $100,000 is a $50,000 Roman equity as is now based up on the contract is going out is being, um, after it's been rehabbed the ARV after we have value is 200,000. Okay, so we're talking about $200,000, ARV, and $100,000. As is value, we got some good numbers to play with. So this is why it's important for you to understand values and understand your market area and how to analyze a deal. So now what happens is, you got a good product, right? Because you know, you got a good product, you're so confident you know how to market your product very well.

Once you know how to market the product, because you know, you got money there. You got to get a buyer, it's going to be easy for you to get a buyer. Now because you know how much the equity is, guess what you're gonna do? Yes, you can turn around and sell for 75,000 Why be greedy Because this investor is going to keep coming back to you and if you real good this investor is going to refer you more business. So what you do is that $50,000 property right? You wholesaler be me and you is going to go ahead and say Hey, I'll sell you this property for $60,000 which leaves you $40,000 mister missus in buyer investor left equity into the property as is in his current condition however if you go ahead and get a rehab as I indicated before based upon what my fo w scope of works from the contractors, you're looking at an average of $25,000 once the work is done, you're also looking at what $200,000 and If you mister missus in buyer investor, even if you want to sell it to your person for 190,000 versus before 200 it's still a win win situation because you're gonna walk away with a lot of money.

So, what in buyer actually pay you 60,000 for the property? No, you got it for 50,000? Yes. Here's why. Because you save them a lot of time. So me and you is going to turn around and make $10,000 from this property, we're going to make 10,000 from abroad.

Now, here's where it gets a little trickier, right? We've got the buyer who agreed to buy this property from us. But we don't own the property right. Okay, so here's our connections. We don't own this property. We do have our name on the contract.

So was really important when you put this property in the contract. You want to make sure you got permission from the current owner, distress seller motivated seller that you can assign the contract. Now do you actually say Hey, can I sign a contract? No, because it's kind of going too far over the head is having too much information. But here's what you want to do. You want to let them know that you are an investor, you are a serious investor, you work with a lot of investors and you have a lot of partners.

And for whatever reason, during that due diligence period, what I have on my contract is come out there and they find something that is not suitable for me. Don't even worry about it. I got partners who want this. So just know that if I don't buy this property, somebody in my inner circle is going to buy This property, but they'll just get it from me. So what I'll do is just turn my contract over to them, and they'll just have to pay me for it. That's it.

So when you write the contract up, is going to say, be the wholesaler Ave call and or assign means the seller is going to be a motivated seller that's their name. B is going to be an or assignees whose assignees See, C is the assignee sees that in. The reason C is that in buyer is because they don't want with the money, not you. They're the ones who's going to put their earnest money down, not you. That is why you want your due diligence period to be 14 to 21 days. So you can stall time to get earnest money from somebody else.

Now if you want to put your own earnest money down this great, do I suggest it No, I suggest you always have your backup plan. Your backup plan is to make sure you have a buyer in place already before you start putting earnest money down because the earnest money you're going to put down as their earnest money. One of the reasons you can get away with the 14 days or 21 days is because during the initial beginning, you have to build that relationship. The other reason you want to build the relationship with the end buyer is because I know seating just became your friend, which is that end buyer, but a is the one you're about to make that $10,000 from. So for whatever reason you don't love, um, person, a that seller. Somehow it happens often.

See what you do in buyer who you thought was cool with you. Somehow you reached out to a, which is your Connect. That's your $10,000 Technically, the moment that Add in buyer reaches out to your Connect which is a the motivated seller it cuts you out the deal. So make sure you build your relationship because when you build your relationship with that seller 90 no real tool real or real estate agent can break that bond between you so that's one of the things important. The other thing about wholesaling now it's time to go ahead and close this deal. Once you have brought a and b together, meaning you found the property, he has sold it to you for $50,000 and you turn around and hand on your contract, home owner a and evany Caldwell and or signings be right in my seat is going to be the end buyer.

Now that end buyer has agreed to pay me $60,000 we're not going to do a double closing situation. We're going to do an A assignment. When we do an assignment, there is no money that's coming out of my pocket or your pocket unless that's the earnest money. And again, as I indicated, you're going to be best friends with a and build that bond and relationship and build that trust. And that's why it's important to build your online presence online for your wholesaling business so he can trust you in a camp want to be with you and do business with you. But in the end, when it's time to go ahead and close this deal, you want to make sure that you are put on the HUD one, their commission statement, the settlement statement, whatever you want to call it, you want to make sure you put on there because you are not a licensed real estate agent or realtor.

You cannot collect a commission. However you can collect a marketing marketing You can't collect an assignment fee. So is very important during this process that you also build your copy create your company, make sure you're doing it 30 days of this video and learning wholesaling, you start creating your company creating your brand identity for your company. Whether it is evany called wall wholesalers evany Caldwell realty portfolio, that is what you want to do. The reason you want to do this so you can get paid so you can collect your fees. And you don't want to really kind of incorporating What's your name, you want your business to be separate from you, your your business are two totally different entities.

So keep that in mind. So I'm Anthony Caldwell with our AI investment society. Hope you learn something from this video. About wholesaling remember in wholesaling as three parties involved. A BNC is seller B is you the wholesaler sees your end buyer. You want to bring those parties together so you can collect a fee