We know you may have questions. Here are some Frequently Asked Questions about Wholesale Properties and wholesaling in general. We're here to give you the knowledge to take action. If you don't see what you're looking for here please don't hesitate to contact us.
Answer: You hear the term all the time, but it's a good question. A wholesale deal simply means that the property we are selling is not a property we own, but that we have a legal contract to buy it and we haven't closed yet. We have located a motivated seller and have negotiated to buy their home at a highly discounted price. The price is reduced because the house is in rough shape or the seller needs money now and can't or doesn't want to go through the traditional process of selling with an agent.
We offer them speed and convenience. When we wholesale a deal we are simply selling you, the end buyer, our position in the contract. This is done by using an assignment contract. In other words, we are assigning our rights in the contract to you. The assignment fee is our cut for putting the deal together and that fee is already built into the price that you see on the website.
Answer: Fair question. We've done well over 200 deals and have been in business for over 7 years. We've got references upon request and we're more than happy to give those to you. Speak to buyers, sellers, title companies... we're in the business of doing good deals. If not we would not be here this long in a competitive market.
Answer: This is one of the most important Frequently Asked Questions about Wholesale Properties. Every wholesaler has a different process. We've gone to great lengths to make buying a wholesale deal from us extremely easy. Everything can be done through the website except for physically seeing the property in person, but you sign up for that on-line as well. For a detailed breakdown of how it works and the process please go to: How To Buy A Wholesale Deal From Us
Answer: The major difference is the inspection period. We get to offer you highly reduced prices on property because we have to move fast and our inspection period is very limited. When we do a showing on the property that is basically the inspection period. No further inspections are allowed unless otherwise specified.
The other differences are how earnest money is handled and closing costs. One you have committed to the deal and have turned in earnest money it is non-refundable unless we cannot provide you with clear title. Closing costs are also the responsibility of the Buyer and are not split with the Seller, which is standard in wholesale deals. Everything else is pretty standard and we close all deals at major title companies in the Denver Metro area.
Answer: The Assignment Contract is the document that is used to transfer our rights and interest in the contract to purchase the property to you, the end buyer. It simply states that you are becoming the buyer now and assume the terms that are contained within the original purchase contract with the seller, which is always provided to you so you know exactly what you're agreeing to. Both these documents are sent together to you when your offer is accepted.
The assignment fee is our fee for finding, negotiating, marketing and facilitating the deal to closing. The fee is usually in the range of $5,000 and can vary depending on the deal and is always included in the price on the website. It is NOT in addition to the price.
Answer: We love working with Agents and do many deals with them. If you have a buyer interested in a property you will simply add whatever commission you need to make to the purchase price listed on the website and thats the price to your buyer. We don't pay commissions from the purchase price as these deals are already highly discounted. All commission paid are in addition to the purchase price listed. For more info go to: Realtor Relations
Answer: Another Frequently Asked Questions about Wholesale Properties is regarding the deposit. As with any wholesale deal, the deposit money is non-refundable unless we cannot provide clear title. We get deep discounts on properties because we move fast and when we say we're in, we're in. We need the same from our buyers to keep the deals coming!
Answer: This may be one of the most Frequently Asked Questions about Wholesale Properties. Unlike other wholesalers, we do not do double closings as a standard practice. We simply assign our contracts. There are no hidden fees in our deals and you will see our fee right on the Settlement Statement. Your purchase price on the website already includes o ur fee, it is not additional.
There is nothing worse than to run your numbers and then get surprised on the closing documents with some off-putting fee, that's not our style. As with every wholesale deal, Buyers are responsible for all closing costs that are typically split between buyers and sellers. Typical closing costs, for your calculations, are usually in the range of .5% of the sales price. These include recording fees, owners title policy and escrow fee to title.
Answer: Great question! You hear a lot of talk about cash purchases. Cash can mean a lot of different things though. Yes, it can mean straight up cash, but often it encompasses home equity lines of credit (HELOC), private lenders, hard money lenders etc. Most of our deals have a relatively short window to close. Speed is what allows us to get great deals because we close fast. In those scenarios "cash" or any of the methods listed above are required because a traditional loan just takes too much time.
Also, since there are no appraisals involved in buying a wholesale deal, traditional financing typical won't work. Cash is king in this business, but we have done traditional loan purchases in the right scenario. If you're an agent with a traditional buyer please contact us and we can discuss your options regarding bridge loans to get your client into a property.
Answer: The inspection period lasts as long as your showing time, which is typically 30-minutes. This is why signing up for a showing is so important because we only do 4 showings and each one is reserved for you only. We ask that you only sign up if you have serious interest though, these are not meant for tire kicker type of buyers, no offense. On some occasions we do allow some more time for inspection depending on the condition and circumstances of the property. We'll always do what we can to make a deal work. Unlike a traditional MLS deal, we get our deals because we can close fast and there is very little inspection. With risk comes reward and thats why we can deliver properties significantly below market value.
Answer: Yes, absolutely. The price on the website already includes our wholesale fee. Your deposit is not in addition to that price, it's built in.
Answer: We do! We often buy our own deals as we rehab homes too. The fact is we can't buy them all. We've sold wholesale deals that make buyers well over 100k+ knowing they would make that. Why? We didn't have the capacity to do it. As wholesalers theres a fine line of getting enough and being greedy. We've been in your shoes and still are as we buy from wholesalers ourselves. The reality is you can't do every deal and we pass them on to our buyers. There's plenty to go around when you have good marketing and great relationships.
Answer: The same way everyone else does we're just really good at targeting off market wholesale deals for our buyers. Direct mail, online ads, bandit signs, driving for dollars, agent referrals etc. There's no secret to it, its hard work and we pound the pavement.
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