young real estate investor

[Michael Falchi]

Im a sixteen year old investor and i want to get into wholesaling. Of course i know not to rush into it without knowledge so i researched alot in the past four weeks. Ive been driving around my neighborhood and a found a house for sale. I thought about and planned what i was going to say then called two days later. I called around 11 which i know was late but still did it. I said Hello i saw your for sale sign in my neighborhood, am i catching you at a bad time? she said no any time is a good time. i then replied with i saw your property for sale and im a young real estate investor and im looking to do my first wholesale deal. and she was silent for a few seconds which is what messed me up and them scrambled my thoughts.. she then told me she understands what im doing and told me to go on i then told her i just want to find my first wholesale deal so i can get the knowledge and experience and that id be fine if there was a small or no wholesaling fee at the end of the deal... but then she asked if i was approved. I was confused and thought she meant my real estate licence or something prohibiting me from wholesaling but then she said for a mortgage. and i just went along with it because i thought she had no idea what i was talking about. she told me she was going to give me a call tomorrow. i also think it was because i only have on bar of connection in my room. Any thoughts or advice? everything helps!

[Randall Alan]

Your buyer likely has no idea what you mean by wholesaling.  It’s a pretty narrow topic that I would not expect an average seller to understand. 

You really need to lead with the benefits FOR HER... not you.

See if this sounds better:

“Hi... I saw you have your house for sale.  I work with a group of investors that actively buy houses (typically closing in less than 30 days).  May I ask you what you are asking for your house?  If If we could come to an agreement on price and I could guarantee to sell your house in 30 days, would that interest you? 

Do you have time to show me the house tomorrow?”

So you see the difference... every seller wants one thing... to sell their house and go do it  quick.  “Wholesaling” is not a word that should even come out of your mouth in all likelihood.  By all means a you can explain how you would sell her house ... which yes, is known as wholesaling in our industry... but don’t call it that to her.  Just explain how your PROGRAM works... that you build in a small commission... and that you will contract to buy her house and then market it to your group of buyers... and also that if you fail to sell it she gets to keep the good faith money.  As for your commission you make it a positive for her by saying that your buyer pays your commission and that she is guaranteed her full asking price that we agree to once we have reviewed the condition of your home.   In addition, there are no real estate commission fees that she has to pay with your deal... just the typical closing costs (doc stamps, etc.)

Of course during the walk through you need to make note of  any deficiencies, and negotiate a price that accounts for those fir your buyers.   also, you have to put together a deal that is compelling for your buyers.  I, as an investor want a deal with meat on the bone... not a retail deal... so hopefully you know that end of wholesaling as well. 

You have a distinct disadvantage in that you are really young... almost to the point I would advise to check on what the legal age is to be able to sign a real estate contract in your state?!   Your ”go-gettedness” is to be commended!  But your age is going to work against you in the near future, because many adults are going to be leery  of “some kid” that says they have some amazing program that they have never heard of to sell their home.  

To add to your credibility I think some marketing materials will help you... business cards, a couple of 1 page sell sheets where one shows the difference between you buying her home versus selling through a realtor; and the other a diagram of how your program works... you contract, sell to your investor, goes to a regular title agency of her choosing, deal is cash and closes in 30 days with no financing contingencies, etc.  also the hot button great things for her... Guaranteed selling price... closes quick, good faith money guaranteed your deal, etc, etc.  hope it helps! 

Wish you the best! 

Randy