I purchased a real estate wholesaling program, But I need a little help.?

Question

I purchased a wholesaling program about a month ago, but I still having trouble understanding the process.
I negotiate a price with the home owner in foreclosure and then the next step is to turn around and sell it to a rehabber for 60 or 65% of market value.
I understand it so far, here is an example. I find a property for $100,00. the owner owes the bank $50,000. The property need some work $15,000 I get my fee $10,000 the owner gets $10,000. back payments $15,000. =$50,000.
When I go to the title Company how do I write up the contract because my understanding I get my check and the owner gets his check at closing, but what happens to the repair cost. The rehabber already gets a property valued below market, does he also get additional $15,000? It looks like the rehabber will be buying the property for $50,000?
Thanks for the help

Answer 1

First, well done on starting to study the field of RE investing.

Second, I believe you have the math wrong.

A short sale implies that the lender is agreeing to take less than what might be owned. If there is no short sale then you have to pay off the existing financing at some point in the process. Hence you will need to factor in the existing mortgage when you run the numbers.

I do suggest you take a look at the website below. There is a lot of free info plus an active group of investors who participate in the forum discussions. Note that some are new like yourself while others are rather experienced. There are a number of of the experienced investors who regularly offer advice and support to those just getting started.

Look for the how-to articles and the success notes submitted by investors.

Answer 2

Experience, a entire guidelines, deep wallet! There is not any laptop application a good way to absolutely check out a estate and get you bids at the models that want protection, and there are traditionally luxurious surprises. If you need to pay anybody to do the paintings, it is going to be extra. The most effective factor I pay for is that which I without doubt can't do myself - roofing, plumbing, electric, and many others. I would most often do drywall and set up ground, however it is a lot more mighty to rent anybody. Other than that, I am my possess hard work drive, and will lovely good determine the cheap to renovate. Ask an skilled buddy for aid earlier than you decide to a estate!

Answer 3

please re-read your question and then re-word it so that i can help you. the dollar values do not make sense. the time frames when each party does whatever he does do not make sense either. the time frame when each party gets some money, and what amount of money, must be made clearer. your downpayment should be stated. you make a contract with the seller before the foreclosure, or else if it is foreclosed, it will be the bank, not the owner, that is selling the real estate.

i shall be looking for your restructured question. thank you.