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If you are a Real Estate Wholesaler there is no excuse for not making money in Today's Real Estate market. There are so many opportunities that can get you making money in the next 30 days.
*Those underlined in blue are links on that particular resource!!
Make some Money in 30 Days
Wholesale ugly/vacant houses to landlords, rehabbers, contractors Flip subject-tos to owner-occupant buyers and landlords Flip lease options to tenant-buyers and landlords Flip pretty houses to owner-occupant buyers Flip leases to tenants Auction houses for investors Bird-dogging Putting out signs Putting out flyers Skip-trace sellers Sell your seller leads to agents and loan officers Sell your buyer leads to other investors, agents, and loan officers Sell your tenant leads to landlords agents Sell you buyer/tenant leads to credit repair companies Charge FSBOs and investors a fee to market their houses Refer rehabbers to hard money lenders Create a Property Hot Sheet and sell advertising to vendors Negotiate liens and judgments to clear title issues Charge to run comps Charge to estimate repairs Charge to manage repairs Charge to notarize documents Sell lists such as vacant houses, city code violations, tenant evictions, fire damage reports, out of town owners, probate notices, pre-foreclosure notices Negotiate forbearance or workout plans Sell bankruptcy kits Postpone foreclosures Sell Short Sale leads Hold wholesale meetings Start your own investment group (Yahoo group or discussion group) Teach others what you know
There is a way to lock in your Short Sales and REO flips with absolutely no money out of your pocket. By using your buyer's money for your escrow deposit you are securing his interest and using zero of your own money to secure the deal.
In order for this to work you must have active buyers on your list not just "Tire Kickers." What's a "Tire Kicker" you ask? Did you ever go to a car lot and the guy next to you is walking around kicking all the tires acting like he knows what he is looking at? He really knows nothing about cars but wants to make the car sales man think he does so he kicks the tires as if he is checking for something. The same goes for your buyer's list. You have your serious buyers who get in and start the car up, look under the hood and them make an offer and then you have the guy who calls you as if he is interested but never actually buys a property. However you still want to keep your "Tire Kickers" informed when you have a deal because they are more than likely wholesalers who know buyers. So if you send them a property they will most likely present the property to their buyer with the hope of getting a referral fee. So you want to keep the tire kickers around!
When you put in your offer on a property put $1,000 in the escrow section of the contract. It would usually state "due upon signing the contract".
As soon as you get an offer accepted on a property immediately begin calling your buyers letting them know about the property. I have my agent take my partners through the property before I sign the contracts with the bank. (this is why it is a good idea to have an agent on your team).
If one of your buyers is interested have them sign a purchase agreement with you and give you an escrow deposit of $1,000. Now this purchase agreement is between you and the buyer, not you and the bank. This agreement will have the total purchase price that the buyer is buying the property for from you not the price you are offering the bank.
You will then give the bank the $1,000 that you received from the buyer and sign the contracts.
The key to this process is your buyers list. I am a firm believer in calling my buyers as opposed to just sending an email or posting in classifieds. Calling your buyers builds your relationship with them.
Now this process will be difficult if you do not have an active buyers list. In this case I recommend giving an escrow of $500.00 ONLY if you think the property is a GREAT deal and you can move it in the time that you have until the closing date. The deposit is non refundable so make sure that you have run your numbers and calculated your costs and profit on the property before you commit to signing the contract. A good wholesale deal is at least %30 below the ARV (Average retail value) of the property after you have deducted repair costs, your fee and holding costs.
I recommend that you continue to build your buyers list daily. Here are some articles that I wrote that will help you build your buyers list.
Are you taking advantage of the Short Sale and Foreclosure flip opportunities that today's market is offering? There are thousands of properties just waiting to be flipped by wholesalers earning them big profits in the process.
Sadly many wholesalers are not jumping in because they are not sure how to flip these deals. This is a wholesalers market my friend and if you are not making tons of money in this market than you are missing the biggest opportunity in the history of wholesaling. If you are still stuck in the old school methods of finding deals by bird dogging neighborhoods instead of putting in hundreds of offers a month on short sales you are truly missing out.
Though Birdogging still proves a very effective way to find deals there is a currently a new wave of opportunity sitting at the feet of every wholesaler. With 7 million new foreclosure getting ready to hit the market like a Tsunami I strongly suggest that every wholesaler learn and perfect a Short Sale System that will allow them to share the wealth with the thousands of other wholesalers that have already dove in.
In an effort to help you to begin to make huge profits from this new wave of wholesaling I would like to share with you the very system that I have implemented into my own Short Sale Wholesaling Campaign. This program has allowed me to put my wholesaling on autopilot. It simplified the process of finding the Short Sale and REO deals, making the offers and finding the buyers. I also suggest that you check out the Short Sale Riches blog link located at the bottom of the page to discover the best free information on short sales avaiable anywhere.
If you want to succeed in Wholesaling you have got to make some noise, rattle some cages and let the world know who you are. A Wholesaler that simply sits in his little neck of the woods holding his contracts in his hands excited as hell about the deals that he has locked up will never sell a single one if he don't network. Networking with investors and other wholesalers in your area is what is going to get your deals sold and money in your pocket. If you are not networking you are not wholesaling. It's that simple. Unless you are selling your deals and making money you are not actively wholesaling.
The first network that you want to tap into is the one right in your back yard. Find Investor Groups in your area and go to a meeting. Introduce yourself, give out business cards and even hand out info on your deals. Visit reiclub.com to locate an Investor group near you.
After you have established relationships with your local Investors you need to branch out into the rest of the world. The first thing I suggest is to join online networking groups. These groups will allow you to connect with people who share the same interest or even people from your immediate area.
Now it is time to join the Investor Forums. These forums with both get you networking with Investors and build your knowledge of Wholesaling. Most of these groups have articles and online education available.
There are hundreds more but these are the ones that I wanted to share. I would suggest that you create a profile and add your contact number in each forum. I have found many buyers in these forums and have found them to be a very valuable asset to my success as a Wholesaler and an Investor.
The Fall Season is about to hit the East Coast. Fall Festivals are about to take place in many of the major Counties and Cities. This is an awesome opportunity to Harvest the house deals left over from the Spring and Summer market. Even though the market will slow down as the Fall and Winter months hit there will still be an abundance of motivated sellers ready for Harvest.
Here is a proven technique that is sure to help you reap the harvest!
Fall Festivals present an opportunity to reach hundreds and sometimes thousands of people by renting a table and presenting your services. Do your research and find out where and when the Fall Festivals are going to be held in Each County. Get the contact number to the person organizing the festivals and reserve a spot.
Have a banner made up at your local Office Supply Store that simply says "WE BUY HOUSES". This will be hung on the front of your table as an advertisement.
Have 2 forms made up with questions. One for those looking to purchase a home and another for those who have a home to sell. Keep it simple! You can get more info when you contact them later. The basic form would include name, address, phone, address of property if they are sellers, asking price etc...
Have business cards made up with your contact info to give out as people walk by your table.
Have fun and Be creative! You can try this marketing technique at Flea Markets too. This presents a great opportunity for you to present your services and let the community know that you exist. You will be surprised at the effectiveness of this type of marketing.
When you get home go through the forms and research the properties. Get ARV, Taxes etc... Now call each one and get more information on their current situation. This beats cold calling because you have already made contact with the sellers or buyers when they filled out the form.
Written by Carol Stinson. All rights reserved.
View an example of a script for cold calls. This will help you further evaluate the property when you make contact with the sellers that filled out your form. Sample Phone Script.
The MLS is where 75% of home owners list their property if they want to sell it. The first instinct of a home owner is to call a Real Estate Agent to sell their property. The portal that that agent uses to get the property out into the buying world is the MLS.
The MLS is a gold mine for the Real Estate Wholesaler. The only thing that is stopping many wholesalers from accessing this outpouring of deals is lack of education on how to move a property listed on the MLS over to an end buyer and get paid.
The first thing that you need to do is find a Real Estate Agent. They are the key that unlocks the MLS. Without them you cannot access the MLS let alone make offers or deals. Let's say they are the "Gatekeepers" of the MLS and you need to get through the Gatekeeper to get into the promised land!
You must find and agent with an open mind willing to work with you in this process. Let them know that by working with you they will not only make a commission but you will be helping them sell allot more deals if they work with you. Many of the MLS properties that I make offers on are listings that have been on the MLS for 90 days or more. These listings would expire soon so I am essentially helping the Agent by introducing the property to my buyers list and helping the seller with a property that is not selling.
The difference between a wholesaler and a real estate agent is that we spend most of our time building a buyers list. Wholesalers (if their doing it right) build their buyers list with active buyers, investors etc... before they even begin locking up deals. The buyers list is the foundation that wholesaling is built on and every good wholesaler spends 90% of their time building that list.
In such a down market you should be able to find plenty of real estate agents willing to help you through this process. After all they currently have more properties than they have buyers so they would actually benefit by being able to introduce MLS properties to your buyers list.
Negotiations are the focus point of any wholesale deal. This is the part that makes the new found property a deal. This is also the part where many new wholesalers get cold feet. Negotiating the price and terms of the new found property with the seller is where the the whole deal gets packaged up and ready for the next level... the sale.
When you are about to negotiate the price and terms of the property with the seller remember...
1. Always stay in control of the deal. you have already run the numbers to get the MAO (Maximum Allowable Offer) and therefore you know what price you are willing to pay for the property. Explain why you are offering such a low price for the property to the seller. (repairs needed, current market conditions, ARV etc...) Stick to the price that you know will move the deal from you to an end buyer. Remember if you are not embarrassed by your offer than you offered to much.
2. Do not get emotional when meeting with the seller! As a Wholesaler you will come in contact with many sellers that are in desperate situations, are dealing with a job loss or health issue or even some that are very intimidating and come off very arogant about what they are expecting to get out of the deal. Leave your emotions at home when dealing with sellers. If you get to involved in the Drama you might agree to pay more than your MAO and this will leave you holding a wholesale deal that you cannot move to an end buyer.
3. He who bids first loses! Never be the first to name a price for a property. Always get the seller to name the first figure. You might say "If I offer you all cash and close in 30 days what is the least you will take". They may ask you to name the price you will pay but always figure out a way to turn it back around to the seller. Why? Because you might give a price that is actually higher than what the seller had in mind. Now who just lost?
4. Always be upfront about your intentions! If you plan on wholesaling the property let the seller know that you are going to present the contract to your "Network Buyers". Let them know that you may not be the one they are going to settlement with. I believe in being honest. I have seen to many wholesalers get to the settlement table only to walk away with no cash because the seller walked out feeling deceived. Remember everything gets exposed at settlement.
5. A Deal Should Be a win, win, win! Let the seller know that you are there to help them not cheat them out of their home. Answer any of the questions that they may have. If you don't know the answer than tell them you will find it for them. This goes for the buyer as well. Wholesaling a property should be a win, win, win for the seller, the wholesaler and the buyer. Your reputation as a Wholesaler depends on it.
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