Wake Up Every Morning & Review New Deals in 30 Days - Pick Best Ones.

People who fail in REI get up in the morning and go out and look for deals.

People who succeed, wake up and review the deals that came in overnight and pick the very very best ones.

We buy property and immediately wholesale it just about every day.

Here is the right way:

1) Locate Master Planned Communities. Find most or all of the master planned communities in your area. The county usually has a list on their website. Why master planned? The homes were built around the same time and have consistent comparison values. Seasoned REIs mail all properties, but start with MPCs.

2) Get Assessor Data. Access the county assessor's database and pull all the county records for those communities. Make sure you pull every part of the record, especially the land and improvement assessed values. The more the records, the better. The more detailed the records are, the better.

3 ) Scrub the data (remove the unwanted records). Remove all the homes that have mortgages. Remove all the homes that have high assessed values.

4) Send the owner an offer to buy the house. Mail a written offer to the owner offering a specific dollar amount and a timeframe in which the offer is valid. We net $10K per house wholesale. Our buyers are fix and flippers. They net $40K+ after repairs and closing costs so do the math backwards. Like this:

ARV = 180,000

Closing costs = $10,000

Flipper Profit: 40,000

Flipper Fix = $15,000

Your Profit = 10,000

Your offer price = $105,000

5) Done correctly you should purchase a house for every 2,000+/- offers you make. There are a lot more details involved to get this response rate.

All in all, finding undervalued real estate and wholesaling it is much less complicated than most careers you can choose and much more time efficient and profitable.

Why do so many new people fail at this?

They cut corners to save money and time.

Here is a partial list of ways I see new REIs fail at locating undervalued property (the wrong way):

Driving for dollars,

using bandit signs,

pursuing the MLS,

sending post cards or colored letters,

using inexpensive mailing lists instead of accessing the assessor’s database,

sending a “letter of interest” instead of an offer to purchase,

concentrating on the real estate itself instead of the transaction and its math,

not learning Excel,

using a bulk mail printer that is not real estate specific,

relying on a real estate agents to close the deal instead of learning the details of how a deal is closed,

using the wrong or a new escrow agent,

financing the purchase,

sending an offer to “or current resident,” sending letters to “pre-foreclosures” or “back tax property” only and missing most of the potential sellers

using a personal mobile phone for inbound seller correspondence,

not having a website for a seller to reference before they call you back with your picture on the front page,

sending offers from a company name instead of your first and last name,

paying too much for property,

emotion,

not returning calls from sellers,

working with non-reputable or new fix and flip person,

using hard money lenders or lenders of any kind,

not paying cash for the property,

not closing on time,

sending out 200 offers as a “test” (sample is too small) and expecting to buy and asset for half price,

sending a single mailer out of any size and expecting to buy an asset without a system,

choosing the wrong area to send offers,

not getting as much education from a credible source before reviewing assets,

expecting not to make any mistakes,

not accepting failure as a learning tool,

taking calls from upset sellers who received an offer for their asset for half of its value personally,

expecting every detail to be perfect before mailing,

trying to hit home run deals instead of singles,

and this list can go on and on.

Sending out direct mail offers takes education, professional tools (data & bulk mail printing) planning, execution, a commitment, and a place to get support where your questions get answered by pros as you move throughout your career (like BiggerPockets).

You have to Get There First.

If a property is “listed,” an agent got there first. If anyone who is not the property owner contacts you about the asset, you didn’t get there first.

People who fail in REI get up in the morning and go out and look for deals.

People who succeed, wake up and review the deals that came in overnight and pick the very very best ones.