How to get started

[Smith Robin]

Hello,

This is my first time reaching out to this community for answers. I am a Realtor who is looking to wholesale. I would like to know how to get started. I have gotten as far as signing up to realtytrac.com and I am getting some really helpful ideas but I'd like to hear from anyone here as to how you may have gotten started. Please advise. 

Thanks!

[Ryan Spinola]

@Smith Robin Hello, im going to give u some info but u need to do alot more research and such. Theres a couple of things u need to know. 

First the Process:

1) Market for a Motivated Seller

2) Talking to a Motivated Seller and Evaluating the Property (Running Comps)

3) Going on the Appointment and getting the Contract (Negotiating)

4) Find a Cash Buyer and signing a Contract (Assignment Contract) with them

5) Taking both Contracts to Title Company or Attorney and do an Assignment or Double Closing (Double Escrow)

6) Close and get Paid

----------------------------------------------------

Obviously, if i were to give u details about them, it would take me a long time so i can only give u a brief details. Since i see your a licensed real estate agent, what i would do first is go on the MLS and whatever areas ur looking to wholesale in, i would see where the cash transactions are in the last 3 month. Whatever areas have alot of transactions in 1 spot, i would focus my marketing there and farm it. What i mean about farm is all your marketing goes, basicly if anyone is looking to sell their house, all they see is ur marketing materials.

So thats first, do some Market Research.

Second, you need to Market for a Motivated Seller. Remember Wholesaling is about Marketing and Sales. Its a numbers game, you have to keep going and dig for gold. 

You need to set up a voicemail system or take live calls. Your brand new so send all the calls to voicemail unless u think u can handle live calls. You need either google voicemail, or a paid program. I use callrail because i like to track all my numbers. I create numbers for each of my marketing campaigns. That way u can see what works and what doesnt.

Theres 3 main ways u can market.

Direct Mail (You send a mail piece to a person's house from a list), Bandit Signs (Put them by major intersections; stick to weekends so u dont get in trouble) and Google Adwords (When someone types in like "We buy houses" and they enter their information, call them back and find out their situtation.)

3rd, When people call in, find out motivation and set an appointment. After appointment is set, running the comps and sign a purchase contracts. 2 things about NJ, When dealing with Attorneys, they like the standard NJ purchase contract so i would use that. Only thing u need to close out is "Qualified inspectors" in part (d), (e), (g) and 39. no assignment. Qualified inspectors gives u an outclause, because if u cant find a buyer in such time, u can say ur uncle bob said property is bad and u want out.  For no assignment, thats how u get paid, assigning the contract to a cash buyer. In NJ, most do assignments since NJ requires all parts of a double close to have their own funding. I also use a 2 page contract which i prefer but again, in NJ because of the 3 day attorney review, if im not dealing with an attorney, then i use the 2 pages.

4th, Find a cash buyer. Go to REI clubs, network with people etc and find tell the buyer u have this property under contract and want this amount for it. Sign an assignment contract with them.

5th, Take both contracts to an Attorney or a Title Company to close. Chris Goodson is an Attorney in northern NJ and he does assignments and double closing.

6th, Close and get paid.

Again, this is only a brief thing, u need to find a mentor and learn. I suggest Sean Terry, he has a free ebook and a podcast. I learned from him and only going by what i did. I hope this helped, have a good day.