Real Deal REInvestor Network

Are you a dabbler dreamer or a powerful entrepreneur  who wants to master wholesaling real estate properties?

 When you commit to changing your circumstances, you must be like a flower bursting through the concrete sidewalk of circumstances, surging upward through solid obstacles like time limitations and job necessities because you absolutely MUST get to the warming sunlight on the other side of what's holding you back.

To use another analogy, in my experience those who succeed despite significant obstacles do so because they MUST experience life on the other side of their obstacles in the same way that they MUST breathe.

What about that real estate wholesaling business you wanted to create and grow? You know, the one you’ve read every ebook available online in pursuit of starting but still haven’t done so much as put together a spreadsheet of contacts who have money, buy properties, or may know someone who does both, much less pick up the phone and call those folks to find out what kind of properties they’ll buy so you can line them up.

Are you even building your buyer's list? If you’re not building this important component of your book of business, in my opinion you’re just not committed to the reality of doing business, but only the idea of it. I’m no longer currently involved in real estate wholesaling, as I found other areas of the business to be less time intensive, more exciting, scalable, and ultimately with better opportunities for larger profits. But as someone who started his career wholesaling houses to make a buck, I despair when I hear from people all the time that they want to start a wholesaling properties business but haven’t yet done a deal. Uh…pick up the phone man!

Put that list together, find them from your own contacts, social networking, websites, bandit signs, ads that say “we buy houses” on the side of the road and in your local newspaper and Pennysaver. Database their contact information until you have a couple hundreds and then start making calls to find out who is a serious buyer, for what, in what areas, and with what kind of buying power. It doesn’t have to be much more complicated than that. Armed with the information from a few serious buyers—typically as a wholesaler your buyers will be landlords who plan to rent the house or rehabbers who plan to fix it up and resell it—you’re ready to go make money in the middle when you find and tie up those deals.

Make sure when you make your buyer investor calls that you are asking them their criteria, what they're looking for and where? How they are prepared to buy and when? As them for referrals too. You’ll be surprised how many will tell you about their “buddy John” or “boss Sandra” who buys properties too, and get their contact information to add to your database. This is how you set yourself up to be matchmaker for wholesaling.

Are you lining up inventory sources indirectly, through other wholesalers, developers, or what? If so, you can scale that business better than if you have to also in addition to finding buyers find sellers too. If you are doing both, and directly finding motivated sellers with deals, you can do both but remember you can find motivated sellers all day long—what gets you paid are they guys and gals who can write a check for one of those deals and are happy to write one with a few extra digits on it so you can make a small profit too. Focus on finding them, and you’ll be way more than half-way there to success as a real estate wholesaler. This is how you make money from those buyer relationships, by matching what you can find with what they are willing to buy.

If not, that cash infusion you want and need is not likely to come from real estate efforts. Because those are the activities that create profits in a wholesale real estate business.

It’s true that having a good list of cash buyers
ready to buy your wholesale deals is very critical
to real estate business.

Currently I have a list, but I would like to find out
from each of you your ways for finding buyers.
Where and how did you find yours?

I will start first by telling how I am finding a lot of mine.

I go to Craigslist to the commercial buildings for lease
or sale. I email the person who did the listing and say
something like this:

I was going through the ads and saw yours and wanted to
say hello and ask you if by any chance you may be an investor?
The reason is because I am constantly finding great wholesale
deals on single-family residences and occasionally commercial
property's. I am building my buyers list so I can wholesale these
deals to my buyers. I would like to add you to my list of VIP
buyers. IF you are interested, could you send me the details of
what you are interested in purchasing? If I don't have it, I will
do my best to find it for you.

We are in the process of adding a new tool to our business--mortgage assignments. A great way to do deals in a win-win result for unsellable sellers to unbuyable buyers.
We have been learning various aspects of this strategy from Phill Grove and his team.
Truly a very exciting opportunity.
Love to hear your experience in this area or any comments you might have.

Wholesaling involves 3 people.  You, a motivated seller, and a motivated buyer.  Last time i went over how to get motivated sellers contacting you...

Now that we know how to get motivated sellers begging you to buy their house...we need to know how to sell these deals for a profit.   (Be sure that you have a property under contract BEFORE you go shopping it around to your buyers or advertising it online or offline)

Here are a few great ways to get buyers for your deals (hint:  in todays market it's a great idea to speak with potential buyers first, find out their buying criteria and then go find them a house):

• Get a list of absentee owners from http://www.listsource.com or http://www.realquest.com or your local property valuation assessor.  Mail them a yellow 4 x 6 post card using http://www.click2mail.com . Have it say something like, "I want to buy your house at "property address".  I noticed you didn't live their, If you're interested in selling for cash i can pay all your closing costs and close in 2 weeks.  Call me at xxx-xxx-xxx."

• Bandit Signs - You can use the same 18x24 corrugated plastic signs that you used to get sellers, to get buyers.  Get them at http://www.signwarehouse.com . I like the yellow ones with black writing, but white with blue writing works good too.  It should say "Cheap House Handyman Special $19k.  and your phone number. "  or "Fixer Upper Must Sell! Cheap!  and your phone number."  If they call and ask for more info on the house for $19k, tell them that one is already sold and get their information and buying criteria so that when you do have a property under contract you can let them know, or tell them about a property you do have for sale.  

• Local REIA clubs:  Find your local real estate investing club and network with the investors there.  Have some business cards printed up at http://www.vistaprint.com and hand them out.  Everyone in that room should know that you wholesale cheap, good deals to rehabbers and landlords.  You can even get up in front of them and pitch any properties you have under contract.  Print up some flyers to hand out detailing the property.

• Free Online Ads:  Of course the interet is a great place to find buyers for your deals.  Here's a short list of places to advertise properties for sale or to place an ad looking for more buyers:  http://www.craigslist.org , http://www.backpage.com , http://www.flippinghomes.com , http://www.rehablist.com , http://www.steveshotlist.com , http://www.facebook.com (you do have a facebook account don't you?  No?!  STOP EVERYTHING AND MAKE ONE NOW!!!)

• For Rent Signs:  Call the For Rent signs in your area.  Ask the owner if they are looking to buy more property and get their buying criteria.  

• Your Realtor:  Ask your realtor if they have any investor clients that are looking for wholesale deals. 

• Your own website/squeeze page.  Bring in buyer leads by having a website or squeeze page that directs people to give you their information.  get one at http://www.realfreedomwebsites.com or http://www.realeflow.com

These are just a few ways to get buyers screaming at you to sell them your deals.  Remember, mark them up anywhere from $2k to $20k + depending on the deal, but ALWAYS leave room for the other investor to make money...that way you continue to build a solid relationship with your buyers and they will keep coming back to you for more deals.

Once you find a buyer for your deal, simply Assign the original contract with you and your seller over to they buyer.  You can do this by using a....drum roll please......."Assignment of Contract" contract.

When i closed my first wholesale deal i said, "This is so Easy!  What have i been so scared of?"  Get out there and make a difference and you'll feel good about making the world a prettier place.

Take Action..Be Free.

-Adam Walker
Millionaire in Training
www.MMMChallenge.com
www.TheKingofTheCity.com
www.RealDealLouisville.com

It seems that I hear a lot of people these days who can get contracts on properties because sellers are desperate these days.  However, they have problems finding good buyers with money to purchase the properties.  Here are a few tips to find good buyers for your wholesale properties.

1.  Go to your local housing authority and get a list of the section 8 landlords.  Call the list.  Yeah, I know -- calling people out of the blue is hard.  But, you know what?  If you are going to be a success in this creative niche of the real estate investing business where you aren't using a lot of your own cash to buy and hold properties, you're going to have to do some things that take you out of your box.  Sometimes, you're going to have to cold call people.  You're trading your previous comfort level for success.  Get over it.  Get on the phone and make the calls.  Not only will you find some great cash buyers who want more rental properties, you'll find some landlords who HATE what they're doing and who will be willing to sell you their properties.  GREAT situation -- finding buyers and sellers from the same list!

2.  Get yourself to your local what is important to them and offer to help them with whatever it is.  Follow up!  I have met so many people at REIA meetings and hardly anyone actually bothers to Real Estate Investor association meetings and network.  Talk to the president of the group.  They will know who the players are and if you come across well, they will be thrilled to introduce you.  Be friendly.  Find out follow up.  That's great news for you.  If you actually follow up, you won't just be one of the herd, you'll be unique and you'll be building yourself a good reputation.

3.  Get a list from one of 3 places:  Your title company, your MLS or RealQuest.  Ask for a list that includes the following:

• People who have purchased in your area in the past 6-9 months.
• Non-occupant owners
• Loan balance = $0
• Purchase price = whatever price range you want to sell it at
• Get all the details that the list provider can give you

Realquest will be the most expensive of these options, but they include information that covers 97% of the properties in the U.S.  If you can't get the information through your title company or  your Realtor's MLS, they are a good option.  And, isn't it true that it's worth paying a few dollars to get a list of solid cash buyers who are purchasing right now in  your area?
Now, go buy a house!

Christy Mellott
Millionaire in Training, www.MMMChallenge.com
www.realdealcolorado.com 

Wholesaling houses is the easiest and quickest way to make quick cash and start your real estate investing career.  If you've been on the moon the past 5 years while this strategy has gained popularity, wholesaling involves finding a motivated seller, negotiating a rock bottom price with them, signing a contract, and then (before closing on the property) assigning that contract to another investor (a rehabber or landlord) for a fee, typically anywhere from $2k to $20k or more depending on how good the deal is.  You don't need any money to do this (aside from marketing).  I had $1.50 in my bank account the day i signed my first contract.

Keys to wholesaling houses:

1) You need a steady stream of motivated sellers contacting you.

2) You need to build a buyers list of Cash or Well Qualified investors who want to buy your deals.

3) Get Paid.

It's pretty simple, but there are definitely steps you need to take, people you need to network and connect with, certain contracts to use and things to avoid. 

Getting Motivated Sellers to Contact You:

Here are some ways to get your phone ringing...

• bandit signs (18" x 24" yellow or white corrugated plastic) - hand write them - have them say "I'll Buy Your House Right Now! CASH! and your phone number or 800 number - put them up on fridays in high traffic areas of your city at a stop sign or light - you can opt to use stakes or staple them high on telephone poles - some suggest you pick them back up on sunday, others suggest to let them ride....your call.  www.signwarehouse.com

• absentee owner post cards - send these out to absentee owners who might be looking to sell (maybe they have bad tenants or need some quick cash - you never know).  you can get any type of list your looking for at www.listsource.com or www.realquest.com.  - the postcard should say something like 'Hey, i noticed you don't live at "property address".  I'm contacting you to see if you'd be interested in selling.  I have cash and can close in 2 weeks.  give me call"

• probate mailers (my personal favorite) - an estate enters probate when someone has died and an executor is appointed to disperse any assets held in the estate or mandated by the will.   You can go to the probate office at your county courthouse and ask to see current probate cases (before you waste your gas, check to see if your county's probate records are available online).   In these cases you'll be looking for this pertinent information:  decedent, property address of decedent, executor/administrator/personal rep and their address, attorney (if there is one) and their address.  Send a respectful letter to the executor expressing your condolences and letting them know you can take the decedents property (which they probably don't want anyway) off their hands and get them cash for it in order to settle the estate.  You may also want to send a letter to the attorney who has been assigned to the case.  Let them know who you are, what you do and how you can benefit their clients, because you want to GIVE first, then receive.  If you'd like more information on probate investing go to www.probatesbypreston.com

• Expired MLS listings - You can obtain Expired MLS listings from your realtor.  Don't have one?  Just start calling local brokers until you find one that is 'investor friendly' and narrow down a top dog you'd like to be friends with....it's even better if they handle a lot of REO's too.  Maintain a partnership with them, referring business back and forth (that way you both grow, learn and make money)  and soon it will become second nature to ask them for expired listings.

• Local Newspapers  and Craigslist - don't forget about that old dinosaur, your local newspaper...yes people still put their houses in there....look for the FSBO's or Investment properties.  www.Craigslist.org is also a great way to find seller leads.  Just reply to the for sale by owner postings in the real estate section.

These are just a few quality ways to get leads coming in like a flood.  REMEMBER, consistency is the key...so whatever you decide to do....STICK TO IT.  Don't just send out 30 letters or postcards and wait....Keep doing it over and over again, only then will you get good results.

Next  Time I will discuss getting motivated buyers to contact you...

Be Free.

-Adam Walker
Millionaire in Training
www.MMMChallenge.com
www.TheKingofTheCity.com
www.RealDealLouisville.com

When wholesaling there are a few elements that an investor must have in order to close a deal.
Here are five of the most important points needed.

The Right Property.

One of the key elements to consider when it comes to wholesaling is the property to be "purchased" by the real estate investor. Always remember that you make money when you buy the property, not when you sell it. So consider wisely the offer you are about to make and/or the contract you are about to sign. Run your numbers, do your due diligence, know your market, do your homework.

Motivated Sellers.

Once you find the best properties for flipping, you can start negotiating with the homeowners or whoever is selling the house. During the conversation you(the investor) must find out the seller's level of motivation by asking the right questions.

The Contract.

The contract or purchasing agreement(P&S) is the most important document for wholesaling houses. The P&S agreement gives the investor the authority and right to sell or lease the property(depending on what was  agreed upon with the sellers). It will indicate that the homeowner agrees to sell his or her property to you within a period of time. Whether you buy or don't buy that property within that timeframe, the owner will keep the money you paid to place the property under contract.

The Assignment Clause.

This is the most significant detail in the P&S agreement. This clause allows you (the investor) to sell your interests (the contract) to a cash investor in return for a fee. In other words, the assignment clause is the money making part of the contract for those who wholesale homes for a living.


A Buyer's List.

Having your buyers linned up and ready to go is essential for investors who are wholesaling houses and will help you close your deals faster. Have their contact information and buying preferences filled, and every time you have a property under contract simply spread the word and let your buyers know about the great deal you have; then just wait for the calls.

A great fear that beginer investors have is whether or not they are going to be able to sell the properties they have under contract.  When you are wholesaling properties for quick cash, having the best deal in the world means nothing unless you have a qualified buyer that can close quickly.
In fact, having a strong buyer’s list will allow you to even wholesale some “not so great” deals. Buyers work off different profit margins and you won’t know what the market will bear unless you have a system to get the buyers to call you and provide what you have to them.

When marketing for buyers a Wholesaler should think about getting access to different types of buyers. High-end property buyers, low-end property buyers, multi family buyers, rehabers, other investors/wholesalers, landlords...
You should have someone lined up for every type of property. It is not very good to have a list of buyers whose criteria is high end rehabs and  you are not able to find these properties. What are you going to do with all other types of properties that you locate?

Here are some few ways you can use to build your buyers list.

- CLASSIFIED ADS.

Run an ad in the paper that says something like:

Handyman special
Great deal for rehabbers!
555-555-5555

or

Investor special
Below market
Won't last!
555-555-5555


Your phone will start ringing. When investors begin calling, get their contact information. Their name, number, fax, and email. Also ask about their criteria. Do you have a preferred area?Can you close with cash immediately?Can I call you in the future with good deals? What is your price range? What level of rehabs are you interested in? (ie: cosmetic changes like updating baths, kitchens, or changing carpet, or major jobs such a foundation).
If you don't have any properties under contract, when your conversation is finished, tell them that you do not have anything available for them at the moment, but will call them when you find something that fit their needs.

- "FOR SALE" ADS

Call “for sale” ads; particularly ads that say “newly renovated”. In most cases this will be an investor who has just purchased a home and fixed it up. Call the ad and ask the seller if he or she is an investor. If so ask the same questions and add them to your list. The fact that he or she has a home that is newly renovated, lets you know that you have a real buyer .

- SECTION “8” RENTER’S

Go down to your Section 8 office seeking the list of properties for rent. On this list you will find the owners name and phone number. Call them and find out if they are buying any more properties for their portfolios and ask them if you can call them when you get a great deal?. Section 8 Landlords are great source of buyers.

-"FOR RENT" ADS.

Same as Section 8 landlords. Call the number they listed and introduce yourself as an investor/wholesaler, ask them if they are buying and get their contact information and criteria.

- REAL ESTATE INVESTOR ASSOCIATIONS

Attend your local REIA meetings. There you will find all types of investors in your local area. Introduce yourself, give your business cards and get them from as many people as you can. Talk a litlle about your business, what you do, what you are looking for. Ask about their business, how you can be of any help for them. Build relationships. These people could be sources of referrals to your business.



Building a buyers list is crucial to your success.
There are buyers everywhere, in every market. You just need to dig them up, and with a little effort you can have The Ultimate Wholesale Buyers List.
When you get to know the players in your area, then you can see the trends and the areas they invest in. If you investigate further you can find out what they pay for homes and what they sell them for.
Remember, the faster you find a buyer, the faster you get paid.