I have Cash Buyers, but No sellers

[Merari Alfaro]

Hello,

I'm 100% new to everything here. I'm currently doing my research, and taking in as much info as I can on wholesaling. I have a friend who knows plenty of cash buyers, and also is a cash buyer herself.

I have no idea how to start finding sellers, or how to talk to them, or how to negotiate. She said she does flips under 200K, cash, and to try to find properties that have 60-80% ARV . I'm not sure what that means, but at the risk of not coming off as ignorant I didn't ask her to elaborate.

I don't know what she meant, and I don't know how to start or where to start?

[Jhamel Jones]

@Merari Alfaro im new to wholesaling myself. But i can try to help a little. ARV is After Rehab Value. Meaning the value of a property after it has been purchased, rehabbed and placed back on the market in good condition.

Im also having difficulties with the negotiating and overall conversing with potential sellers.

[Jhamel Jones]

The most efficient way to find properties is to choose a market(area of interest for your buyers) and drive around. Look for properties that seem neglected write the addresses down and reach out to the owners.

[Will Pritchett]

@Merari Alfaro ultimately you are looking for someone with a reason to sell below market rates. Usually a problem with the property physically or a problem with the seller that requires a quick sale. I would read as much as you can about wholesaling. Don’t expect a yes right away. Just be persistent and learn all that you can. I think you should listen to the BP podcasts by wholesalers and get familiar with the terminology. It will help with those conversations with sellers.

Best of luck!

[Nick Rutkowski]

Originally posted by @Merari Alfaro:

Hello,

I'm 100% new to everything here. I'm currently doing my research, and taking in as much info as I can on wholesaling. I have a friend who knows plenty of cash buyers, and also is a cash buyer herself.

I have no idea how to start finding sellers, or how to talk to them, or how to negotiate. She said she does flips under 200K, cash, and to try to find properties that have 60-80% ARV . I'm not sure what that means, but at the risk of not coming off as ignorant I didn't ask her to elaborate.

I don't know what she meant, and I don't know how to start or where to start?

ARV = After repair value. So your friend is asking you to find properties that are worth 60-80% more after they are repaired. You're basically looking for a run down house. So what are you doing, bird dogging for her? Make sure what you're doing isn't illegal.

[Brian Pulaski]

Welcome to REI. I have the same problem, no houses. That to me is the hardest part of this business, finding the deals.

[Don Konipol]

@Merari Alfaro. It’s a little hard for newbies to understand, but think of it like this. A particular aApple phone is being sold for 900.00. You line up hundreds of people willing to buy that phone for $550.00. However, you have no phones to sell and no idea how to find a source willing to sell the phones for $525.00. Your buyers list is worthless.

Same thing in wholesaling. Without finding, identifying, controlling a property that meets the criteria of the buyers ( a substantial discount from market value), your buyers list is worthless.

The few people who have tuned wholesaling into a business have educated themselves extensively in both real estate principles in general, and their particular market niche in specifics. Further, they have developed rather sophisticated systems for marketing allowing them to generate leads of potential sellers fitting a particular profile. Many spend significant ($10,000 per month +) money on marketing. Of course there are exceptions, but to just go driving by, or scan MLS, or get a list of homes being foreclosed on, and think you're going to be able to establish a sustainable business is just a dream sold by people selling mentoring services.

Probably 99% of would be wholesalers give up after 6 months. Reasons are lack of knowledge, lack of expertise and experience, under capitalized, too much competition, don’t like the work required, lack of time, frustration, inability to stand large amount of frustration, legal requirements not being met, disappointing results. At the very least consider what you would need to do to be successful: deal with homeowners during the most stressful time of their lives; during financial crisis, unemployment and divorce, and the fact that most will be confrontational and consider you a predator. Ask yourself if this is something you really want to do. There are a lot easier ways to make a living. And by the way you won’t be a real estate investor, you’ll be running a business within the real estate industry. Basically doing the same thing as a real estate broker.

[Merari Alfaro]

@Don Konipol this was a fantastic way of putting it! Thank you!

[Merari Alfaro]

@Nick Rutkowski Thanks for responding. I'm not working for her, I just asked if she knew any buyers since she works real estate.

I have a potential motivated seller from out of state. I would need a walk through of how that would be possible. I intend on purchasing the Flipster software, that way I can figure our the exact numbers. But if she does accept my contract, do I have to DocuSign and email it to the seller? Does it have to be done through a title clerk?

[Jerryll Noorden]

Originally posted by @Merari Alfaro:

Hello,

I'm 100% new to everything here. I'm currently doing my research, and taking in as much info as I can on wholesaling. I have a friend who knows plenty of cash buyers, and also is a cash buyer herself.

I have no idea how to start finding sellers, or how to talk to them, or how to negotiate. She said she does flips under 200K, cash, and to try to find properties that have 60-80% ARV . I'm not sure what that means, but at the risk of not coming off as ignorant I didn't ask her to elaborate.

I don't know what she meant, and I don't know how to start or where to start?

 This is because buyers are easy to find. (So are selelrs... if you know what you are doing).

If you want to find selelrs you need to be able to be in front of them when they are in need to sell "urgently".

So now the question becomes.. How can I be right there in front of the seller exactly whan they need to sell fast... right?

Well there are 2 ways you can accomplish this. 

1) The mortal way... blindly blast mailers out periodically/continuously so that homeowners will get mailers thrown in their face when they do not want to sell, and when they eventually want to sell they still get mailers sent out. See the idea here is that as long as you keep sending (expensive) mailers out over and over and over again, you hope that eventually that person wants to sell, and they will get a mailer. What these mortals do not consider is that not many people will appreciate being sent crappy mailers over and over and over again. But said mortals won't care how many people they inconvenience, as long as they can get A deal out of it all.

Obviously you can clearly see this is a ridiculous system and mortals call this "Direct Mail Marketing". Mostly for people that don't know any better. Can't blame them. They are just mortals!

2) Now you have the immortal way of doing things. You do this right and the universe will make you immortal, and magically your name will change to a godlike x-man super ninja title. Mine is MSOOTKAUG (My Supreme Overlord Of The Known And Unknown Galaxy).

What you do here is create a website, make it credible, rank it #1 using Immortal SEO and VOILA, you are always there EXACTLY when they need to find someone to buy their house in cash. How? Because when someone needs to help with something urgently what will they do? Call their mom? Call the news papers? Call their favorite radio stations to ask for help? No, they ask Mother Google!

And so your website is at the top position on Google/Yahoo/bing/gogoduck just when they need you.

The result?

Now you will ask: "Ohh but you handsome monkey like Immortal being mercy on my soul, did you pay anythign for these leads? Did you do anything to get these amaaaazing leads?"

To which MSOOTKAUG will answer. Yes my dear Yooman, I shall have mercy and will answer your mortal question. No I did not pay for any of these leads.

Now you have a choice. Join me and become immortal... your name shall change to something spectacular or keep struggling along side the mortals. Will you choose the blue pill or the red pill?

If you TRULY want to be successful...

Look at SEO, Facebook ads, or PPC to get leads.

All hail MSOOTKAUG!

[Joseph Cacciapaglia]

I'm curious how you selected wholesaling as your way of entering the real estate business. As you're finding out, it's a tough way to make a living from real estate. I know there are a lot of courses and internet gurus that are pitching it as an easy way to make money, but I think that all of the experienced wholesalers on here will attest to the fact that it is a grind (unless of course they have something to sell you). It's difficult, because you not only have to understand how to value properties and find sellers, but also how to estimate repairs. 

I believe that most of the people entering the wholesale market today would make a lot more money if they just became a real estate agent. It's a very easy process in most states, and then there are tons of brokers that are willing to train you for free. Yes there are fees involved with licensing and MLS access, but the wholesaling business isn't cheap either. If you have the hustle and marketing budget that you need to be successful as a wholesaler, then you should be able to kill it as an agent. Then once you have made some money, and understand the pricing side of real estate, you can start to learn about the rehab estimating side, and decide if you want to wholesale at that point.

Don't get me wrong, I know there are a lot of wholesaler bashers on BP, but I'm not one of them. I'm not saying not to do it. It's just not as easy as many would have you believe. I think there is a lot more to learn to be a successful wholesaler, than most other roles in this industry. Of course, you hear the occasional tale of a noob getting lucky, but for every one of those, there are probably hundreds that blew their budget on direct mail or internet marketing, only to close up shop shortly thereafter.

If you do decide to stick with the wholesaling plan, I recommend direct mail. Despite all the different internet marketing options out there, I still find direct mail to be the easiest way to contact those out of town sellers that just want to be rid of their properties. I have the most success with letters that have a real stamp and hand addressed envelope. I think most post cards go straight in the trash, but a hand written envelope is usually at least opened.

[Jay Hinrichs]

Originally posted by @Don Konipol:

@Merari Alfaro. It’s a little hard for newbies to understand, but think of it like this. A particular aApple phone is being sold for 900.00. You line up hundreds of people willing to buy that phone for $550.00. However, you have no phones to sell and no idea how to find a source willing to sell the phones for $525.00. Your buyers list is worthless.

Same thing in wholesaling. Without finding, identifying, controlling a property that meets the criteria of the buyers ( a substantial discount from market value), your buyers list is worthless.

The few people who have tuned wholesaling into a business have educated themselves extensively in both real estate principles in general, and their particular market niche in specifics. Further, they have developed rather sophisticated systems for marketing allowing them to generate leads of potential sellers fitting a particular profile. Many spend significant ($10,000 per month +) money on marketing. Of course there are exceptions, but to just go driving by, or scan MLS, or get a list of homes being foreclosed on, and think you're going to be able to establish a sustainable business is just a dream sold by people selling mentoring services.

Probably 99% of would be wholesalers give up after 6 months. Reasons are lack of knowledge, lack of expertise and experience, under capitalized, too much competition, don’t like the work required, lack of time, frustration, inability to stand large amount of frustration, legal requirements not being met, disappointing results. At the very least consider what you would need to do to be successful: deal with homeowners during the most stressful time of their lives; during financial crisis, unemployment and divorce, and the fact that most will be confrontational and consider you a predator. Ask yourself if this is something you really want to do. There are a lot easier ways to make a living. And by the way you won’t be a real estate investor, you’ll be running a business within the real estate industry. Basically doing the same thing as a real estate broker.

good post as usual Don I firmly believe if many of the folks that come on this site put the same time energy and Marketing Money into building their real estate brokerage brand they would have a career for life.  Not that selling real estate as a broker is a walk in the park but done right and you get established it can be a lifelong career and well paying with a lot of flexibility on your time.. especially now a days where its rare that agents work out of the office.. 

[Jerryll Noorden]

All, do we really have to make every single question about how much better those with licenses are to those that just want to wholesale?

Don't you honestly think this is getting old?

The woman asked a question about cash buyers and motivated leads.

How about you stick to that and if you don't know how to get motivated sellers just watch and learn the pro's explain it?

Yes?

Cool!

Awesome!

Cary on!

ALL THE WHOLESALERS OUT THERE THAT WANT TO DO WHOLESALING PAY ATTENTION.

Do not mind these scardy pants.

I started with NOTHING!! I tried wholesaling and here is where I am now:

I made over $300K this year so far.

Does this mean that you will get this too?

No absolutely not.

BUT don't tolerate these folks scare you into NOT doing what they were not brave enough to do.

When ever you see someone rain on someone's parade just tell them  off! Don't sit there and turn the other cheek. Friggin STEP UP!

Now all you that want to wholesale.. Go for it my dudes and dudettes.

Do it right be smart and Go get it!

It is absolutely not easy.

But it is NONE of their business if they ask you why you decided wholesaling and not something else.

Gurl Power!