Wholesaling Guide

Real Estate Wholesaling Guide Using DealWorthIt

Step 1: Understanding Wholesaling

Wholesaling involves finding deeply discounted properties, securing them under contract, and assigning the contract to an investor buyer for a fee. Your goal is to act as the middleman between motivated sellers and cash buyers.

Step 2: Setting Up Your Business

Before starting, ensure you have:

• A Business Entity (LLC) (Recommended for legal protection)
• An EIN (Employer Identification Number) for tax purposes
• A Business Bank Account to receive assignment fees
• A Title Company or Real Estate Attorney familiar with assignments

Step 3: Finding Motivated Sellers Using DealWorthIt

DealWorthIt allows you to find both on-market and off-market deals.

Methods to Find Deals:

1. Off-Market Properties (use DealWorthIt):
   • Use DealWorthIt’s Skip Tracing to get seller contact details
   • Filter properties by pre-foreclosures, absentee owners, and tax liens
   • Contact owners directly via cold calling, SMS, or direct mail
2. On-Market Properties (use DealWorthIt):
   • Use MLS Comps & Sales History to find discounted deals
   • Reach out to real estate agents and make offers
3. Driving for Dollars:
   • Use DealWorthIt to research property details and track leads
4. Networking & Direct Marketing:
   • Attend real estate meetups and social media groups
   • Use Facebook Ads, Google PPC, or Craigslist

Step 4: Analyzing the Deal with DealWorthIt

Once you find a lead, use DealWorthIt to determine if it’s a good deal.

Key Analysis Tools in DealWorthIt:

✅ Owner Information & Property History: Check mortgage details and liens
✅ Comparable Sales (Comps): Find similar recently sold properties
✅ Market Rent & Demographics: Determine rental potential
✅ Repair Cost Estimator: Estimate renovation costs
✅ Profit Calculation: Use ARV (After Repair Value) and MAO (Maximum Allowable Offer) formula:

MAO = (ARV × 70%) – Repair Costs – Wholesale Fee

Example Calculation:

• ARV: $200,000
• Repairs: $30,000
• Wholesale Fee: $10,000
• MAO: ($200,000 × 70%) – $30,000 – $10,000 = $100,000

Offer no more than $100,000 to the seller to ensure profit.

Step 5: Getting the Property Under Contract

Once a seller agrees to your offer, lock up the deal with a Purchase and Sale Agreement (PSA) – This template together with others available for download on DealWorthIt.

✅ Use DealWorthIt to Generate a PSA Template
✅ Include an Assignment Clause allowing you to assign the contract
✅ Submit an Earnest Money Deposit (EMD) to a title company ($10-$100 recommended)

Step 6: Finding a Cash Buyer Using DealWorthIt

Now, assign your contract to a real estate investor.

Ways to Find Buyers:

• Cash Buyer Database in DealWorthIt (Find investors who recently purchased similar properties)
• Real Estate Networking Events & REIA Meetings
• Facebook Groups & Craigslist
• Email Blast to Buyer Lists

✅ Use DealWorthIt’s Buyer CRM to track buyer interactions

Once a buyer agrees, sign an Assignment of Contract Agreement with them.

Step 7: Closing the Deal and Getting Paid

1. Submit all documents to the Title Company or Attorney
2. The end buyer will wire funds
3. The title company will handle legal transfers
4. You receive your assignment fee at closing

✅ Use DealWorthIt to Track Closing Status
✅ Ensure Payment via Wire Transfer or Check

Step 8: Scaling Your Wholesaling Business

• Automate Lead Generation with DealWorthIt
• Outsource Cold Calling & SMS Marketing
• Build Long-Term Relationships with Buyers & Sellers
• Reinvest Profits to Market for More Deals

Final Thoughts

Wholesaling is a numbers game—more offers = more deals closed. By leveraging DealWorthIt’s powerful data, CRM, and automation tools, you can streamline the entire process, from finding deals to getting paid.🚀 Start your first deal today using DealWorthIt and build your real estate empire! 🚀