Wholesaling my step by step plan with lots of questions.

Wholesaling
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Wholesaling my step by step plan with lots of questions.

Kirk R.
Peoria, IL · Member since 2013 · 967 posts · 383 votes

Trying to be succinct.

1. Hand deliver blind offer letters to unkept houses.
Blind offer verbiage:
***
I was driving around the other day and happen to pass by your house on 5th St. Looks like it could use some work. If you are interested in selling, I will pay you $80,000 cash. If that works for you, please let me know and we can open up escrow right away. If not, please let me know what will.

Thanks,
Aaron
(123) 456-7890
****
????Anyone willing to share a blind offer letter they have gotten good results with? Or any letter they've had success with?
????Should I just target all the houses vs. unkept since it's hand delivered?Or any other ideas????
????What kind of response might I get and how many deals? Maybe go back and leave another letter later?
????Use a Google phone #?

2. Seller contacts me. Not sure exact phone script.
????Any one have a good script?

3. I go look at the house and comp it out. Offer 70% of ARV - a guestimate for repairs. Then, deduct out my wholesale fee. Have my listing agent rough comp it out also.

4. When seller says yes. Send out an option agreement and a memorandum of option & then record the memo with the county.
?????Where would I get an option agreement and memorandum of option?

5. Do it myself preliminary title search on the property.

6. Check with my local Realtor board about listing in the MLS for a property I am not on the title. List it if I can or Craigslist it otherwise.
????anyone dealt with local Realtor boards have any suggestions?

7. Find a buyer for the property. Buyer signs an assignment agreement.
????Any suggestions for finding a buyer especially if I can't list it in the MLS?
?????Where would I get an assignment agreement?

8. Have the title company prepare the closing documents.
?????Do I need a lawyer to prepare the closing documents?

Greatly Appreciate:
Risks?
input?
thoughts?
suggestions?
Improvements?
Lessons Learned?

Best Regards,
Kirk

Aggregated from a post by @Aaron Mazzrillo. Thanks Aaron:
http://www.biggerpockets.com/forums/109/topics/90875
& a post by @Matt Whiteside's. Thanks Matt:
http://www.biggerpockets.com/forums/93/topics/91617

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Tim G.
Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
13y

Your job is to find motivation, don't spend much time drawing up offers if you aren't dealing with a motivated seller.

I would recommend listening to Sean Terry's flip to freedom podcast on iTunes. Its a great starting point for wholesaling.

Cheers,

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  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    Your job is to find motivation, don't spend much time drawing up offers if you aren't dealing with a motivated seller.

    I would recommend listening to Sean Terry's flip to freedom podcast on iTunes. Its a great starting point for wholesaling.

    Cheers,

    1Reply
  • Sabrina C.
    Member since 2013 · 52 posts · 3 votes
    13y

    I agree with Tim. I am a student from the Flip to Freedom Academy and they advise is to write enough offer in the beginning so we are comfortable with the contract and etc. But, as time goes by you will not have time to waist with writing many contracts, you will start filtering your leads based on motivation.

    Hope that helps.

    0Reply
  • Kirk R.
    OP
    Peoria, IL · Member since 2013 · 967 posts · 383 votes
    13y

    ne1 have a link to download the Podcast? Never downloaded a Podcast b4.

    0Reply
  • Daniel Hornsby
    Real Estate Agent · Madison Heights, MI · Member since 2012 · 58 posts · 3 votes
    13y

    Kirk R. You have A LOT of questions. Most of those questions can be answered after a little digging through the forum posts here on BP.

    But, here's my 2 cents...

    I think your letter is good but I wonder


    Will your offer be the same for every home?
    My understanding of "Driving for $$" is to target homes that are vacant/abandoned or in disrepair to hopefully grab a tired homeowner with a motivation to sell. I don't leave a letter personally, just my "seller" business card affixed to the home.
    I do. Other people may use other services but I find Google Voice has and does what I need it to do.
    I would recommend comping it out BEFORE you go to the home. That way you are prepared to give educated offers on the home. At this point you definitely don't want to give any "blind offers".
    You can find them all over the place, even here on BP in the "Fileplace". An attorney can also whip something up for you which is usually the recommended route because different states have different laws and such. If you do find some you want to use, protect yourself by having an attorney look them over.
    6. Check with my local Realtor board about listing in the MLS for a property I am not on the title. List it if I can or Craigslist it otherwise.
    ????anyone dealt with local Realtor boards have any suggestions?

    I am not an expert by any means. But I don't think you can list a property on the MLS for which you are not on title. Your best bet is to list it on Craiglist and other similar classified websites and other means of advertising to your buyers. Keep in mind you will probably have to pay a Realtor commission if you choose to work with one.
    ????Any suggestions for finding a buyer especially if I can't list it in the MLS?
    ?????Where would I get an assignment agreement?

    REIA meetings, Courthouse steps, BP, public records, etc.
    Again, any contractual needs should be fulfilled by an attorney but there are a couple on the BP FilePlace (under resources tab)
    Depends on your state.

    Hope this helps!

    PS. I second what Tim G. posted!

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y

    If the property is unkempt, there might be nobody that will even come to the house, so the letter won't be seen by anybody in that case.

    0Reply
  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    download iTunes. You can get them from there. Not sure how to get them otherwise maybe someone else can guide you.

    The thing about vacant beat to crap houses is that the owners usually aren't motivated. Its a needle in a haystack to get one.

    Besides one house, every deal I have wholesaled you would have never sent them a letter based on its appearance when driving by it.

    It can happen, but its not the fastest way to get a deal IMO. Took me a year and half to get one that way.

    0Reply
  • Kirk R.
    OP
    Peoria, IL · Member since 2013 · 967 posts · 383 votes
    13y

    Hi thanks all for the input.

    So my next step should be to listen to 112 of Sean Terry's Podcasts? How long is each of them? One I looked at is about 36 minutes.

    0Reply
  • Kirk R.
    OP
    Peoria, IL · Member since 2013 · 967 posts · 383 votes
    13y

    I'm pretty old school. Maybe some day I will get a face book page. I think I've the Podcast deal figured out. Not sure my head will handle 60 hours or so of Podcasts but if it's my next best step. Maybe I will drive from IL to Cali and back & listen to them on the way. I could write off the miles right? LOL

    Tim G. Hi Tim - I did download Itunes. Thank you for the advice. Yeah I don't want to spend 1.5 years looking for a deal. I will probably listen to all the Podcasts. Just seems like the more I know the harder it is for me to actually take any action. Analysis Paralysis.

    0Reply
  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    Ironically and I'm sure some here won't like me saying it but I had to leave this forum to stop that problem and those podcasts are what got me my first deals.

    I'm not saying you need to do that but for me this place was like drinking from a firehose, too much info... on everything.

    I like the targeted approach, only talking wholesaling nothing else. Yes I would suggest listening to as many of those podcasts as humanly possible, you will see once you start they have value and are HIGHLY motivating.

    Cheers,

    0Reply
  • Kirk R.
    OP
    Peoria, IL · Member since 2013 · 967 posts · 383 votes
    13y

    Tim G. - Lots of black space out there for me in the REI world. I've done two rehabs was Realtor & bought a new construction model home. Although Analysis Paralysis is my worst enemy.

    From your posts I've read I like the way you are direct with your responses.

    I will listen to all the Podcasts. Downloading them all now. Although adding more information to the brain....

    Thanks & Cheers - Kirk

    0Reply
  • Kirk R.
    OP
    Peoria, IL · Member since 2013 · 967 posts · 383 votes
    13y

    Sabrina Carapia - thanks for Seconding Tim's responses.

    Daniel Hornsby - Thanks for thirding :) Tim's responses. I appreciate you taking the time to answer lots (alot) of my questions. I didn't realize there was a Fileplace. Thanks for that Info.

    0Reply
  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    13y

    Nothing wrong with spending a little more time on education. It'll make up for itself in the saved time on mistakes. And I've made LOTS of those.

    I don't use options. Well, I do, but not when wholesaling. I also typically don't use contracts when wholesaling. I tell the seller what I can pay. If they say yes, I let them know escrow will be in touch. I then contact escrow, tell her the terms, and let her know who my buyer will be. She sends out escrow docs to the seller with my buyer's name on it.

    I've only been questioned twice on over 100 transactions why the buyer's name isn't mine. I tell the seller that it is my money partner and since he's putting all the money up, I let him take title. The conversation has never gone beyond that.

    I know this will probably only make it worse for you, but I haven't looked at probably the last 50 houses I've purchased either. Don't get caught up in the engineering side of a deal.
    Make your offer.
    Get an acceptance.
    Tell escrow the terms and your buyer's name.
    Let them figure it all out and mail you a check when the dust settles.
    Cash your check and keep looking for more deals.

    It REALLY is that easy.

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