All Forum Posts by: Account Closed

You know, I'm not sure. For me its probably the deals since I don't flip Reo propertied or MLS listings. Honestly in my market there are plenty of both. I guess anything is easier to find if you know where to look.

Randall Gillette. This is a good question. In a previous post, you referenced trying to go national with leads buyers, seller, etc. This very dilema is why I would reinforce my previous statement steering you away from that. You have to know your market like the back of your hand. Here's what has worked for me.......

While every buyer has certain likes and dislikes, what you'll find is that in each market there is a reletively standard "quality deal". this changes from market to market and your job is to find out what that quality deal is in your area. I speak with most of my buyers and find out specific likes and dislikes, But the main thing you'll want to know is what their exit strategy is. Are they planning to fix and flip the house, or hold it long term. Most fix and flip guys in my area want to make about a 30% profit once they sell. This means they will need to buy, fix, and hold the property spending no more than 70% of what its worth. As for landlords, they want minimal repairs and prices vary based on zip codes.

You can market for buyers on craigslist for fun but most of the folks on craigslist (at least in my area) are just other wholesalers with no marketing budget trying to find a deal. I add them to my buyers list but i don't count on them. The best way to find real buyers in your market is to ask a realtor to pull all the cash sales in the area within the last 90 days. Find out who bought the property, where and for how much. Look them up, contact them and have a conversation. You'll see patterns about buying locations and prices.

You should go to your local reia meeting and ask what investors are buying and for how much. Those folks will be happy to help you.

By the way, you'll never feel like you have enough buyers so don't let that stop you from finding sellers.

I do the same, I normally just make phone calls and send text messeges. (Im actually doing it right now) But this thread is intended for the brand new investor, who has never done a deal, nor has created relationships with pocket buyers yet.

Some have difficulty determining price on offers and its just an additional safety net.

In addition, in my experience it becomes a great negotiation strategy, because its your funding source's fault that you have to drop the price another 10K not yours. I know everyone might not agree with this but it works for me. It's allowed me to renegotiate lower prices without losing trust from my seller, eliminates sellers calling me every 2 days asking when will we close, eliminates the seller from ever asking me for earnest money upfront, and occasionally allows me to cancel contracts without argurment.

True its rare, but I brought it up due to the person that asked a question. Though most don't care HOW you buy, all of them care IF you buy, and if you give the seller the impression that your going to personally close on the deal for sure. In the event that you don't get a buyer, or the process is delayed you potentially could open up a can of unneccesarry worms.

Sure you could say that if its a deal, then someone will buy it, and thats true to an extent, but in today's market buyers have so many choices from which to buy properties a good deal can go overlooked. Especially if your new (like the person I was answering the question for) and have a limited buyer's list.

Cara Smith sorry for the delay here are your answers

1. NO
2. Not really, mabey gas, mabey an earnest money deposit(no more than $100 I rarely even use that much.)
3. Not if you have the proper out clauses in your contract, and you don't make the seller feel that the house is already sold as a done deal. I normally tell them that I use private funds to buy and that I have to get the appoval of my funding partners In order to complete the purchase. My clause is "subject to partners appoval". I let them know that we need to have a purchase agreement in place to let them (my cash buyers) know that we've agreed on price and that we are serious about the deal. If you don't get a buyer, your partners don't approve and the contract is null and void.

4. No, You want vancant beat up houses in the middle of everything. Find out where buyers are purchasing and find your houses there.

Cara Smith Thanks for posting. No disrespect to any of the above comments but Cara the more time you waste trying to figure out S corps LLC's etc the longer its going to take you to get started doing what matters. Marketing to Sellers, and marketing to Buyers. Jon Holdman was totally right in his last paragraph. This is not something you need to worry about until after you get your feet wet. Your contracts and your knowledge of how to put deals together will protect you legally.
And you need not worry about how to manage dividends, Taxes, and employee wages until you actually have made some money. The main thing you have to battle in any new endeavor is fear. The more technical roadblocks you set up for yourself, the less likely you are to get started. Too many new folks waste time on setting up websites, buying courses, learning 4-5 strategies, building a power team, ordering materials, attending webinars etc..... These people dont make it. TRUST ME, I was almost one of them. People tell you to do all this stuff to fatten up thier couses so they can charge more money. Wholesaling is about marketing. Go get a list of high equity absentee owners in a zip code where Cash buyers are purchasing, and start a marketing campaign!

99% is a little steep Scott, but I do agree most people in business don't ever succeed because of 2 things.

1. Most people are not conditioned mentally to run a business. It takes organization, tough skin consistency, willingness to sacrifice, and alot of other characteristics most people don't have. Most people send out a few letters, put out a few signs, run into a few no's get cussed out and then quit. The truth is after you get things rolling it becomes alot easier.

Lack of Education
2. While many sellers are underwater smart wholesalers, learn marketing strategies that completly bypass them. I actulally don't talk to them that often. There are plenty of houses with equity, they were all bought before 2000 *hint.

The people we work with are trying to sell the house themselves, and they have no clue how to find a Cash Buyer. In fact most of the time the issue with the house is not about equity or foreclosure. Its about repairs. The best deals come from people who have a house that will cost them too much to repair and sell to a retail buyer. If your dealing with equity adjust your marketing.

Douglas Rath, check with your local real estate investors association to see what the custom is in your state. As far as your email, I'd be interested to see what you put in it lol. You may be targeting the wrong people. I'd make sure that your targeting properties for sale in a lower price range ( #'s depend on your market). Look for motivation in whatever they post about the property. As far as the angry responses, Sometimes it happens don't be discouraged.

Randall Gillette welcome to wholesaling. This business is simple but its not easy, no matter what they tell you right before you spend $97. Im not supporting or bashing the product you mentioned (I bought it myself) and I think its a great supplement to your marketing program. But make no mistake, its not a substitute for direct mail marketing, referrals, networking and getting to know your market. Honestly I;d reccomend learning to wholesale in your backyard before trying to go national. One reason is, that in order to do a remote deal you have to instruct buyers, sellers, title companies, agents, property visits, etc blindly. It can be done but its much easier with experience. While the internet can be a great tool, wholesaling is not an online business. Just my thoughts......

Kyle J. not officially. I never found anyone that would officially "mentor" me. I just learned from different people who had expertise in different areas. I still do. The best way to learn is to partner with someone and create value for thier business while watching what they do. Very few people will turn down help, very few people are creative enough or willing to do this. It works