Starting Out Wholesaling

[Josh VanAusdale]

Hello,

I’m just starting out in the wholesaling space in the Columbus, Ohio area. I’m currently reading, learning, and researching. I had a couple questions that came up and I was hoping for some insight if anyone had some time.

My questions are as follows:

Once I get my mailers together, before I send out should I buy a separate PO Box to have the responses sent there?

Should I get a second phone line for responses?

What are the next steps if I get someone calling me to sell?

What forms do I need to have them sign and where do I get them?

How do I know that I’m guaranteed a flipper will buy?

I currently have a mentor I’m working with but they won’t be able to buy everything. They will be able to put me in touch with other buyers, however.

Do I give the cash buyer a heads up on the deal before paperwork is signed so I know that I’m covered?

Also historically, what has been the best experience for any of you in regards to finding leads/deals? For starters, I was planning on utilizing sites like ListSource.com and using direct mail per what had been mentioned on the ultimate beginner’s guide on this site. I wanted to see if that would be good first steps and then go from there.

Any additional tips/tricks for a newbie would be certainly appreciated. My goal is to get a check list together of things that I need to complete to get closer to my short term goal of starting to market. This way I can execute step by step and get some progress going as I continue to work my full time job for the time being.

Thanks for any information!

Josh

[Paul Amegatcher]

Originally posted by @Josh VanAusdale:

Hello,

I’m just starting out in the wholesaling space in the Columbus, Ohio area. I’m currently reading, learning, and researching. I had a couple questions that came up and I was hoping for some insight if anyone had some time.

My questions are as follows:

Once I get my mailers together, before I send out should I buy a separate PO Box to have the responses sent there?

Should I get a second phone line for responses?

What are the next steps if I get someone calling me to sell?

What forms do I need to have them sign and where do I get them?

How do I know that I’m guaranteed a flipper will buy?

I currently have a mentor I’m working with but they won’t be able to buy everything. They will be able to put me in touch with other buyers, however.

Do I give the cash buyer a heads up on the deal before paperwork is signed so I know that I’m covered?

Also historically, what has been the best experience for any of you in regards to finding leads/deals? For starters, I was planning on utilizing sites like ListSource.com and using direct mail per what had been mentioned on the ultimate beginner’s guide on this site. I wanted to see if that would be good first steps and then go from there.

Any additional tips/tricks for a newbie would be certainly appreciated. My goal is to get a check list together of things that I need to complete to get closer to my short term goal of starting to market. This way I can execute step by step and get some progress going as I continue to work my full time job for the time being.

Thanks for any information!

Josh

 Josh,

See below for some of the answers to your questions:

My questions are as follows:

Once I get my mailers together, before I send out should I buy a separate PO Box to have the responses sent there?

Some wholesales get a mailbox for the returned mail others use their personal address.  It is really up to your comfort level and privacy.

Should I get a second phone line for responses?

You can get a second line or a google voice line to handle all the incoming calls.  It is a good idea to screen all your calls.  All my mailers go to my google voice number and voicemail.  I then review each voicemail before I call back.  This allows me to be prepared to talk to the seller.  My voicemail also has a simple message : leave your name, number and the property you are calling about and we will return your call shortly.

What are the next steps if I get someone calling me to sell?

There are several phone scripts for dealing with sellers(search Biggerpockets).  Here are some basic things to do.  As I stated before screen all your incoming mailer calls so you can listen and research each property prior to talking to the seller.  Some sellers are unaware that you mailed several hundred letters and expect you to know who they are.  I would ask some basic questions about the condition of the house, their motivation for selling, and what price they want for the property.  If they ask you for your offer give them an answer that you only make an offer after you have inspected the property. 

What forms do I need to have them sign and where do I get them?

You need a real estate purchase contract that is assignable.  You need to have a lawyer review your contracts to make sure they are legal to use in your state.  You also need an assignment contract.

How do I know that I’m guaranteed a flipper will buy?

Focus on areas that people are buying and selling a lot of homes. Stay out of the war zones and also stay away from high end homes. For flips you want the areas to be worth 100K to 250K ARV. For rentals you want the area to be worth between 30K to 100K ARV.

Do I give the cash buyer a heads up on the deal before paperwork is signed so I know that I’m covered?

No. Only market the contract once you have it.  If the deal never materializes you would have wasted your buyers time.

Also historically, what has been the best experience for any of you in regards to finding leads/deals? For starters, I was planning on utilizing sites like ListSource.com and using direct mail per what had been mentioned on the ultimate beginner’s guide on this site. I wanted to see if that would be good first steps and then go from there.

The best way to get some cheap leads is to hit up the county auditor or treasurer for a tax delinquent property list.  You can find these online for free or you can call the auditor for the list.   I also use driving for dollars in the working class/rental neighborhoods. Another way to find leads is to setup zillow alerts for different areas so that when someone lists a property either for sale by owner or through a realtor you get an alert.  You can also scavenge on craigslist for leads in the real estate for sale section.  

Good luck 

Paul Amegatcher