How I Wholesale Houses Not Under Contract (This May Surprise You) - Awesome REI

How I Wholesale Houses Not Under Contract (This May Surprise You)

9 comments

JP Moses
Hey, JP here…

My honest answer to a pretty common wholesaling question recently seems to be throwing some people off-kilter. I guess it sounds somewhat controversial to some?

I dunno, you tell me. Here’s the question, which came from Kenneth:

“Help! I came across a property I think is a good deal and put the deal to a couple investors. One replied for the address. I don’t have it under contract. Will the investor be able to cut me out? The asking price includes my profit. Any help would be appreciated. This would by first deal.”

Another juicy (larger) question came up in our answer to Kenneth—which led to my honest answer that some are finding surprising:

Can you try to wholesale a property even before you have a contract on it?

My answer: Yes…kind of

Ahhhh, the art of ambiguity—that uncomfortable place where things can mean one thing or something totally different. When it comes to your business, ambiguity can often be downright scary, and other times it’s the space where you can make magic happen—make something profitable out of nothing.

And that, my friends, is when ambiguity is a beautiful thing.

I’ve been successfully wholesaling properties for years now, some of which were effectively “pre-wholesaled” before I even had a contract in place. It’s all in a tried and true technique I call the “ambiguous soft pass.”

Listen to our back-and-forth on this below and see what you think:

So… there ya go.

Now you know exactly how I go about wholesaling deals to cash buyers, sometimes before I even have a solid contract in place.

What do you think?

Am I on to something (for years and years of successful deals now)?  Does this tactic sound awesome or iffy to you?

Johnpaul Moses

JP Moses is a roughly-hewn man-child who jumped into REI back in Y2K and full time in '02. After many twisty turns over the years, from landlording to short sales to rehabs to Realtoring to lease options to REOs to notes to owner financing, blah, blah, blah… he finally stuck his flag deep into wholesaling. Today JP's Memphis-area operation's wholesaled somewhere north of 400+ transactions and actively turns 3-7 houses a month. He also really digs helping others and pours a ton of his heart and soul into helping his fellow real estate investors from his own REI and business-building experiences.

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9 comments
ROSALYN NEAL

Thanks,good infor concerning getting properties under contract.

Reply
KHaines

So you got in to wholesaling. . . I do have a question: I’ve had three props where we’ve had lease-options w/sellers who were desperate to sell their properties. Had we known what to do re: wholesaling, we could’ve helped the sellers and our selves in the process as well as connecting with buyers. . .could’ve had three deals under my belt. . .

. . .connecting willing buyers with desperate sellers, we’ve literally had desperate sellers. And you’re saying that we can wholesale before we even sign a contract???

We’ve actually had three houses literally in our possession w/lease options, and as a newbie, because I’ve found some more properties, and your talking about wholesaling a deal before it’s under contract sounds. . .like you said. . .iffy.

I’d have to go with my gut feeling; but these are some deal steals and I’d be interested in knowing what to do in approaching the sellers now. Can you provide some suggestions? I guess I’ve sort of gotten cold feet, so-to-speak.

Reply
    Johnpaul Moses

    Hey, thanks for chiming in…but I’m a little fuzzy on what your exact question is here. Could you restate it and clarify your question please? Thanks 🙂

    Reply
Alma Arches

You guys! I thank you all for the knowledge passed down to me. My very first wholesale deal I made $11,500.00. I’m ecstatic!!!

Reply
    Johnpaul Moses

    @Alma—sweet! I remember when I started wholesaling back in 2002, but didn’t have my first five figure month like that until 2005! Congrats, you! Now just rinse & repeat, right?

    Reply
Fred Richey jr

I think it would work OK. Just make sure you get it under contract quick.

Reply
    Johnpaul Moses

    Agreed, Fred. It’s just a loose, non-specific “soft pass”, not a formal offer. Totally.

    Reply
Nicholas C. Petruccione

Very informative! Good info!

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