I recently got a great question from one of my blog reader’s – Dennis that I’ve decided to use as a training tool.

Dennis has attended several real estate investing seminars and even listened to quite a few webinars but all have completely failed to address his question head on.

His question is “What are the Mechanics of wholesaling a property?”

Dennis has been very confused about the actual mechanics of wholesaling.

As simple as it may sound, if you don’t have a clear understanding about the process-

you’ll be too afraid to make that move and you’ll never make any money at it!

Some new investors have a great deal of anxiety about the contracts/agreements that are required to wholesale a property.

Fear not, these can be easily obtained online and they are completely applicable.

If you find yourself in need of an Assignment of Contract or an Agreement to Sell- you are welcome to download 22 of my free forms here, save them and customize

them for your own use.

DON’T FORGET

When you sign the property up aka get it under contract, aka take it down, aka lock the property up (you get the idea) –

you absolutely MUST add the phrase “and or assigns” after your name on the purchase agreement to be able to

actually have the right to pass this deal on to a new buyer.

I didn’t ever want to risk the possibility of forgetting or leaving this essential phrase out so I added it to my purchase agreement to be ever-present.

I find that it raises fewer questions with the Seller as well, since it’s

already typed into the original agreement. Click Here for any of these

FREE forms and more- that might come in handy as you move toward

that next real estate deal.

• Acknowledgment of Right of Assignment
• Agreement to Amend Real Estate Purchase Contract
• Agreement to Sell Real Estate
• Assignment of Contract
• Authorization to Release Information
• Escrow Instructions
• Cancellation and Mutual Release of Real Estate Purchase Contract

So, Dennis- I’ve created this simple diagram on the Mechanics of Wholesaling to really answer your question about the step by step process to assigning a contract.

>>>Click here<<<<  for the Diagram. I hope it helps  and Thanks for that excellent question!

BTW…

If you have any questions that you need answered
in regards to real estate investing feel free
to leave a comment below.

Who knows!

Maybe your question will be the next one
that I answer

Become a matchmaker and collect a generous bounty ($25,000, $50,000 or more).

Want to know exactly how to…
* find the lenders,
* find the investors,
* make the deal,
* collect a fat bounty

<<Check it out here>>

Spend 90 minutes – not months or even hours – and you’ll know how.
AND have all the tools and proven scripts you need.

If you’re new to the idea of investing in REO property, as is likely to be the case if you’re reading this article, you may still be wondering exactly what these properties you’ve heard so much about are and how exactly they’re a good value for the property investor. You might also want to know if this is a type of property investment which is suitable for novice investors. If these are the questions on your mind, then this article is for you. We’ll cover what a REO property is, how to invest in these properties in bulk and hopefully by the time we’ve finished, you’ll have a good idea of whether these investments are right for you.

So without any further delay, let’s get to the first question.

What Is REO Property?

In case you’re not familiar with the term, REO stands for Real Estate Owned. This is property which has reverted into the hands of a lender; this is almost invariably a bank, credit union or other financial institution following an unsuccessful attempt to sell the property at a foreclosure auction. The banks or lenders then attempt to sell these properties as quickly as possible, since as far as their ledgers are concerned, foreclosed property is a liability, not an asset. Of course, banks aren’t in the real estate business in the first place, so it’s in their best interests to rid themselves of this property.

OK, So What’s Bulk REO Property?

Larger financial institutions especially are often left with a large number of REO properties on their hands, especially now in the wake of the credit crunch and the waves of foreclosures which preceded it. Banks are eager to pass on these properties to buyers, often selling them for greatly discounted prices. Where the idea of bulk property comes into the picture is when real estate brokers and investors will make offers to these institutions to purchase several properties at once for an even lower price.

Why Is Bulk REO Property A Good Investment?

Since the banks need to get rid of these bad investments to get them off of their books and since the housing market is still somewhat soft, there are some excellent values to be had for the forward looking investor or investors who are interested in making a rental income off of these bulk REO properties. Of course, given the very low prices at which these properties can be purchased in bulk, investors can still make a tidy sum by selling these homes even as-is; many REO properties tend to be in need of a little fixing up, but at their price they’re still most often a great bargain.

Are Bulk REOs Something Which Newcomers To Property Investment Should Involve Themselves With?

The answer I usually give to this question (which I’m asked quite a bit) is no – unless these investors are looking to make money. Bulk REOs represent an incredible investment opportunity and there are quite a few novice real estate investors who are already making a substantial amount of money from these investments; and others who are holding on to these properties, waiting for market conditions to improve before selling for even larger profits. Whether you’re an old hand at real estate or you’ve never purchased an investment property before, bulk REOs are something which you should at least consider investing in.

So How Do I Find These Bulk REO Properties For Sale?

That’s often the most challenging question, especially for people who aren’t experienced in the real estate market. There are several ways to go about it, most involving a lot of research. The important thing to remember about real estate investment, whether we’re talking about newly built commercial property or bulk REOs is this – it’s a numbers game. If there was one thing I want people to take away from this article it’s that.

You need to make lots of offers and deal with lots of different banks and other lenders, brokers or asset management personnel and do some investigating to identify properties which interest you. Especially if you’re new to property investments, you may be better off dealing with a reputable broker who has contacts with lender asset managers and is experienced in handling bulk REO purchases.

Just do a little research ahead of time to make sure you’re doing business with someone who’s going to make sure that you’re treated fairly in this transaction – other than that, I hope I’ve answered some of your questions about bulk REO investments and I wish you the best of luck and profitable investing!

Bulk REO Secrets

BIRD DOGS & TEAM BUILDING

Let’s Start with the Definition of a Bird-Dog:

A “Bird-Dog” is a person that identifies a good Real Estate opportunity based upon the criteria set forth from the investors that he hunts for. A Bird-dogger can work for more than one investor at at time as long as they clear guidelines within the criteria for each individual that they work for/with.

By the same token,  Bird-dogs can fulfill  a range of various tasks, directly proportioned to the agreed upon salary, fee/commission.

Now, this is a great way to get invloved without risk or money and the Bird-dog stands to make a profit strictly based on having a great eye, interacting and following the investors criteria.

The Bird-dog puts the property under contract with the sole intent of assigning that contract for a fee to a rehabber to repair and resell.

In today’s real estate market there is a huge opportunity for those new bird-dog investors.

I do recommend that you have at least these 2 fundamentals in your toolbox to be successful at this real estate venture.

I find that a Flip Camera is unmistakenly neccessary to digitally document the properties that you find and to accompany verbal notations about that property for the investors that you work with. The Flip Video Cam allows you to work smartet not harder and when you couple it with this baby- Skype…you save a ton of time and gas!

You can download the Flip Video CamShots to your computer, make a free Skype appt with your investor(s) and show them everything that you have in real time.

You would also have sent any other required data ahead. Gone are the days when a Bird-dogger has to meet the investor in person. Use these new and dynamic tools to make it easier than it;s ever been

A few things you must know to be successful at real estate bird dogging:

1. How to Find Investors
2. Locate Sellers
3. Present the Information

Here’s a Sample Bird-dog Biz Plan that you use to customize and build upon.

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You will be paid   $ ._______For each house that is accompanied with a Property Information Sheet along with a photo of the house.

I pay for the bird dog services in batches of 10.

You may contact me for payment once you have completed a minimum of 10 houses.

• Make Copies of the Property Information Sheet

• Find Distressed and/or Vacant Houses in the target and area and complete a sheet for each.

• Attach a Photo for each subject property.

• Property Address Indicate whether property is vacant or not.

• Indicate whether house is listed with a real estate agent and if so, list their name and phone number.

• Indicate whether house needs paint, carpet, new plumbing, new roof, new foundation, windows, electrical or replacing of wood.

• Notice anything else?

• Note anything that might be pertinent.Batch the leads and submit them to me after the completion of 10.

• Get Paid.

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Remember, the goal is to build a  great power  team to do the business so that

you don‘t have to do everything.

Simply follow the roles of the jobs at first until you have documented them.

Then you can pass them onto somebody else.