My step by step list -- Am I close?

Question

Steps of the wholesaling process

1.      Find property
     a.      Send direct mail once a month to list of absentee owners
     b.      Drive for dollars – seemingly vacant homes
     c.      Bandit signs – We Buy Houses

2.      Put property through tests
     a.      Visit property
     b.      Find ARV value through a realtor with comps
     c.      Estimate renovation costs
     d.      See what kind of spread can be made

3.      Negotiate terms with seller
     a.      Price
     b.      Time for sale
     c.      Earnest money
     d.      Lock box for access
     e.      (Need to talk with seller to build some rapport.  Find out what their pain is.)

4.      Market house
     a.      Take to buyer list (offer to specific buyer for certain amount of time)
     b.      Craigslist
     c.      Hand written yard signs
     d.      Biggerpockets.com
     e.      REIA Meeting
     f.       Facebook
     g.      Talk to realtors
     h.      Talk to bankers

5.      Find Buyer
     a.      Assign the contract (or flex option agreement)
     b.      Send to title company
     c.      Require earnest money ($1,000 - $2,000)

6.      Close
     a.      Get paid!
     b.      Send everyone cookies and thank you notes.

This is the step by step process I've brainstormed thus far in my wholesaling education.  Can you tell me if I'm close?  Do I need to add anything?  Do I look like a genius or a big dummy?

Of course there are pre-steps like finding buyers and knowing the documents I will use, but this just the process itself.

Thank you all so much!

Wayne Woodson · Answer

@Ethan Peyton I will do that.

Wayne Woodson · Answer

Here is how I do it...

1. Find Potential Buyers
a. Find out what buyer is looking for
b. Number of bedrooms
c. Number of bathrooms
d. Number of sqft
e. Area of town
f. Price range

2. Find Property
a. Send direct mail
b. Drive for dollars - seemingly vacant homes
c. Bandit signs - We Buy Houses

3. Negotiate Terms With Seller Over The Phone
4. Find ARV value through a realtor with comps
a. Price
b. Time for sale
c. Earnest money
d. Lock box for access
e. (Need to talk with seller to build some rapport. Find out what their pain is.)

5. Visit Property
a. Estimate renovation costs
b. See what kind of spread can be made
c. Get Property Under Contract

6. Market house
a. Take to buyer list (offer to specific buyer for certain amount of time)
b. Craigslist
c. Hand written yard signs
d. Biggerpockets.com
e. REIA Meeting
f. Facebook
g. Talk to realtors
h. Talk to bankers

7. Find Buyer
a. Assign the contract (or flex option agreement)
b. Send to title company
c. Require earnest money ($1,000 - $2,000)

8. Close
a. Get paid!
b. Send everyone cookies and thank you notes.

@Ethan Peyton If you don't mind I would like to do a blog about this on my site as I think it will help alot of people.

Carlos Ayuso · Answer

Good one this is a great thread already!

John Milliken · Answer

nice list. love the cookies at the end for everyone.

Ethan Peyton · Answer

Wayne  Woodson
Went and checked out your blog today. Looks good!
You should throw my website in there!!!
Haha..just messing with ya. ;)

Ethan Peyton · Answer

Wayne  Woodson
Have at it man.  That list is worth exactly what you gave for it. :)

Just tell Dave Ramsey I said "Hello" when you see him on the street.

Reginald Vickers · Answer

Braden  C. Thank you so much for that response. It is exciting to see the different ways this can work. it makes total sense.

Braden C. · Answer

Reginald Vickers I actually have a much different opinion about this, and I'll give an example and explain why.

I recently dropped 1,000 letters to an area about two hours from me. I had absolutely zero buyers on a list for this town. Of those 1,000 letters, I did four deals (I would have expected one deal, four deals from 1,000 letters is very rare). I wholesaled three of them and closed on one that I sold on the MLS. All three that I sold took very little effort to find a buyer, I never left my office to do it.

Over the years I've wholesaled houses, condos, duplexes, triplexes, vacant lots, mobile homes, an apartment building, and recently a single hotel room. Had I just been looking at what a certain buyer wants, I would have missed out on a lot of deals. I follow deals, great deals. If I can get a great deal on any type of property, I can find a buyer very quickly.

Knowing how to spot a great deal is what's tough. It would be easy to ask a buyer what they're looking for and then go find it. However, his exit strategy might not be the same as someone else. You could find a deal that is great for a landlord but not great for a fix and flipper. If you pass up on that deal because you don't think your fix and flip person will take it, you've lost out on selling it to the landlord.

Reginald Vickers · Answer

Ethan Peyton I'm  a newbie so anything I am saying is from what I have read. I think the greatest advice I have found so far has come from this blog: http://www.biggerpockets.com/renewsblog/2013/01/26/wholesale-advice-fix-flipper/ Before you find the property, build the buyer list and know what they are going to buy.

Ethan Peyton · Answer

Braden  C.
You are a rockstar!
Thank you so much for this info.  Sounds like I will be going over this thing with a fine toothed comb later. :D

My step by step list -- Am I close?

Most Popular Reply