Tips on Getting Started in Wholesaling

[Godwin Ashley Dilibe Offiah]

Being new to the Real Estate Industry, what are some helpful tips in Wholesaling?

More specifically, where are the best places to acquire listings such as (probates, foreclosures and pre-foreclosures)?

[Lori Greene]

Hi Godwin,

The best way to find probates, foreclosures and pre-foreclosures is with your own advertising. If you use a site with a list, you have to compete with all those other investors trying to contact those property owners. But if you but out an I Buy Houses ad and someone in dire need of your help calls you, then you are likely the only one their asking for help. Plus, THEY CALL YOU. That's a huge plus in itself.

Here's a link to a BiggerPockets article in the Innovative Strategies section all about what kind of ad to put out to attract a lot of motivated sellers like these and how to get them to accept an offer: https://www.biggerpockets.com/forums/61/topics/635...

Once you've got some deals under contract, you have to wholesale them quickly. It's easy. There is no shortage of investors, cash buyers and flippers looking for good deals.

Why would they pay you for wholesale deals when they can get their own? Because, in this business, time is money! And you've just saved them a lot of time by finding, analyzing, offering and closing these deals.

1st, create a PDF that is basically an ad for the property. Think like a Cash Buyer in your presentation. What kind of deal and presentation would make you want to buy it if you were going to fix and flip it?

Show them the detailed numbers with a breakdown of the After Repair Value minus all of the projected costs (including your wholesaling fee) and the final profit. Your wholesaling fee should typically be less than 20% of the total profit so that the Cash Buyer can have at least 80% of the profit. Cash Buyer's love deals like this!

List what repairs or upgrades are needed. Show them photos of the property inside and out.

Wow them with all of the homework you've handed over to them on a silver platter. THIS AD IS WHAT WILL SELL THE DEAL FOR YOU.

Here is an example of the elements of a great Wholesale Deal Presentation:

Example Title to Wow Cash Buyers:

"Deeply Discounted Fixer-Upper - INVESTORS DREAM!!!"

Property Address

Example Cost & Profit Breakdown:

$131,500 After Repair Value

(65,320) Purchase Price

(24,780) Repairs & Upgrading

(5,240) Closing Costs

(4,500) Financing Interest

(1,200) Taxes & Insurance

(5,900) Wholesaling Fee

____________________________

= $24,560 Cash Buyer's PROFIT

Actual Sold Comparables

Estimated Repair Details

Call to Action:

We have a huge Cash Buyer’s list. This one will go fast. Don’t delay!!!

Your Contact Info

Next, blast your presentation EVERYWHERE! Hopefully, you've already started building a Cash Buyer list. Investor networking sites like Bigger Pockets and Connected Investors are perfect places to find Cash Buyers.

Email your presentation to your Cash Buyer's list. Also copy and paste all of the info from your presentation into online ads and posts on investor networking sites, Facebook Investor Groups, Linked-In Investor Groups, CraigsList, local online classifieds, etc.

Then take your PDF in paper form to local Investor Club Meetings and any real estate auctions you can find. This is where Cash Buyers hang out and they are hungry for deals!

FYI, there are other ways to wholesale a contract besides just assigning the contract. You can do double closes (even without using your own money) or you can use disposable LLC's (where you sell your LLC who owns the contract instead of selling the contract). If you have questions about these strategies, let me know.