Here is a quick guide for wholesalers on how to chose a contract.
The seller’s situation and motivation will point you to the appropriate strategy and your fee.
Before writing an offer, consider your buyers list. Ask yourself:
– How quickly can they close?
– Will it fit into what the homeowner needs?
– Can you think of 3 or 4 people, minimum, where this deal fits their criteria? (Is there a minimum of $30-40k of profit for your rehab-buyer?)
Chose the contract based on your Exit Strategy. Your exit strategy is affected by how much your fee will be. Here are some general rules of thumb:
– If your fee is between $5-10,000 –> use Assignment of Contract
– If your fee is greater than $10,000 –> Do a Simultaneous Close
* If the deal is too complex, out of your normal area or price range, consider calling another wholesaler. Your fee will be significantly less—around $500-1,000.by