Question for Wholsalers....???

Question

I've done 2 single family flips so far, Not afraid to tell you that I failed and lost money on both due to myself mismanaging the deals. I chalk it up to hands-on education. Education ain't free no matter how you slice it. So I learned a ton And I'm very confident to crush my next one as soon as I recover my cash and credit. So for now, I need to get quicker safer cash. Need to Wholesale.

Basically Looking for a step-by-step guide to what actually works or worked for YOU.

So I've been gathering addresses from my area of distressed property. My questions go out to anyone who's wholesaled a deal before. Figured I'd just ask all my questions and see what I get..Hope it's not too much.

1.) What's the best software, lists, and lead generators out there if I go the route of spending some money on actually finding these deals?

2.) Which strategy for finding the name/address/phone number of the owner do you find most effective?

3.) When you get the owner on the phone, how do you not sound brand new or too anxious? Do you have a script you use?

4.) What contract do you use to lock up the deal? Do all contracts apply to all areas? I'm in Rhode Island and Massachusetts.

5.) How much do you give the owner as a down payment? How many days do you put in the contract to close to give yourself time to find the end buyer?

6.) Do you be upfront and express You are going to find an end buyer and plan to make a little money out of the deal? Do you act like the end buyer?

7.) When it's time to close and disperse proceeds, do you use the buyers' attorney? Are there 2 attorneys involved? Do I need to have my own for my end of the deal?

Thanks so much for reading.

Any input at all would be greatly appreciated.

Steven D'Ambra

Real Deal LLC

Anthony Thompson · Answer

@Steven DAmbra here are some quick answers that I hope help you out:1.) What's the best software, lists, and lead generators out there if I go the route of spending some money on actually finding these deals?People speak well of Deal Machine, so I'd check that out.InfoUSA and Melissa Data are data brokers that people speak well of too.I forget the yellow letter site(s) that people on BP recommend, but you should be able to find it/them easily enough.2.) Which strategy for finding the name/address/phone number of the owner do you find most effective?I go to ripropinfo.com and from there go to the assessor website for the city/town.3.) When you get the owner on the phone, how do you not sound brand new or too anxious? Do you have a script you use?When I first started out I had a script, but I found it too constricting. I ended up just going with a bulleted list of points to cover. And at this point that's pretty much in my head.4.) What contract do you use to lock up the deal? Do all contracts apply to all areas? I'm in Rhode Island and Massachusetts.If you're an agent or working with one you can easily use the "standard" agent P&S for your area.If you're not, I'd recommend asking your attorney for one to make sure it covers all the necessary bases.Yes, it should work throughout the state.5.) How much do you give the owner as a down payment? How many days do you put in the contract to close to give yourself time to find the end buyer?"As little as possible" is the standard answer. But in practice, $500 if you can get away with it, $1000 is also common these days.For how soon to close, I think a "fast" closing would be 30 days out and wouldn't make it less that if you haven't already started the title work.A lot of these "motivated seller" properties have title issues so you want to allow enough time for a good title search to uncover anything like that.6.) Do you be upfront and express You are going to find an end buyer and plan to make a little money out of the deal? Do you act like the end buyer? This is a personal call. I typically tell them that I will be at the closing but I may bring in different lenders or partners, and it's likely we'll close under a different name than I'm putting down that day.I do act like the end buyer, because if I can't find someone to buy it, I will be the end buyer. So I'm prepared to do that if necessary.If you're not getting it under contract for a price you would personally feel good about closing at, even if your plan "A" is to wholesale, it might not be a good wholesale deal after all.7.) When it's time to close and disperse proceeds, do you use the buyers' attorney? Are there 2 attorneys involved? Do I need to have my own for my end of the deal?Usually the end buyer will insist on using her/his attorney, and you don't normally involve yours. If the seller has an attorney then that would be 2 attorneys - one for the seller and one for the end buyer.

Steven DAmbra · Answer

This was very helpful Anthony, I'm going to implement these strategies asap. thank you