Here’s something many wholesalers experience at one point or another—they find a great deal and lose control of it somewhere along the way. If it’s any consolation, even the best in the wholesaling space has experienced something like this at one point.
In fact, Virtual Investing Mastery’s coach, Lauren Hardy is no stranger to this. Fortunately, her years of experience has taught her how to avoid similar scenarios from happening. And that’s what you’ll learn how to do as well in this episode!
If you want to equip yourself with the right strategies so you stay on top of each of your deals, this episode is for you!
- Why marketing to as many buyers as possible is recommended
- When the ideal time to stop marketing deals should be
- What EMDs are
- Why EMDs should be considered mandatory
- What the mandatory amount is for her
- What your assignment fee should be like
- Why you should choose the escrow company
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All right, let’s get into it. I got inspired because I had a student who had a deal that she was losing control over. Let’s call her Sandra. Sandra had a deal. It was awesome. She got a contract on a property that was 50% of its value. It was a smoking deal. When she was ready to start advertising it to other investors, she found an investor fairly quickly, but it wasn’t until the investor signed the assignment agreement that things spun out of control. It inspired me to create a video about the controls that I put in place, so that way she won’t have to deal with these sorts of things again. If you are proactive about these rules, these controls, your deals were run a lot smoother. So take it from me and take these five tips when you were putting together off-market deals, and when you’re specifically selling to other investors.
Number one, I want you to make sure that you take control over this. I want you to market this property that you have under contract to as many buyers as possible. You are going to create a bidding war. Do not be a cash buyer’s employee.
You also don’t want to stop marketing this property until you have a signed assignment agreement and an earnest money deposit from your end buyer. When you get those, you can stop marketing it. But until then, you need to keep marketing this property because you don’t know if that end buyer is going to perform until they place an EMD, and even then, anything could happen. So you want to make sure that you have your bases covered. EMDs are mandatory and they are non-refundable. A mandatory amount for me is $500, but they can also be more if the property is worth more. Do not let any end buyer negotiate this out of you. EMDs are mandatory.
Number three, your end buyer has 24 hours to sign the assignment agreement. Your assignment agreement has to be dated, and it needs to have that exact statement. You do not want an end buyer to hold onto your assignment agreement and take their time, eating up time in your escrow for them to sign it. So when you deliver it, it has a date, it has that statement that they need to sign within 24 hours or the agreement is null and void.
Number four, you choose the escrow company. You should already have a preferred escrow company that you work with. If you are having trouble finding one, you need to ask around, ask other wholesalers in the area, maybe go on the Wholesaling Inc. Facebook page, see if there’s anybody that has a recommendation there. You really need to make sure that you keep your transaction in your favorite escrow company. Sometimes I will waiver on this if the escrow company is very knowledgeable about contract assignments, they’ve handled them before. But for the most part, anytime something goes wrong in escrow it’s because we didn’t use my escrow company. So I really try to urge you guys to keep the escrow within the escrow company that you are comfortable working with.
And number five, I know I already said this a couple of times, but I’m going to say it again, do not lose control. You are in control of this transaction. Do not let anybody push you around, especially an end buyer. It might be tempting to take their advice, or do what they say, but listen, you’re the one who has the contract and you are not desperate. You have the deal. So do not lose control and stick to these rules.
All right, guys, I hope you found that helpful. I know it was short. If you guys want to receive more tips on wholesaling homes, specifically virtual wholesaling, which is my specialty, check out my coaching program at www.virtualinvestingmastery.com.