All Forum Posts by: Joe Gonzalez

Whats going on @Mark Gabryel, if the deal is well below market value then you should still be able to find a buyer. I've had deals that were on the MLS and needed work but they were asking for market value, once I locked it up (let's say at 60%) I was able to secure a buyer regardless of it being listed.

Whats going on guys,

I'm a full time wholesaler from Houston, and can offer some tips.

Contract - You can use the official contract promulgated by your state or you can use a generic one (BiggerPockets has plenty). The key will be the special provisions and clauses that offer you protections, make sure to be familiar with these clauses and make sure they are always included.

When you have a homeowner that is ready to sell and you have concluded that it is a deal, then you agree on an earnest money amount and both sign the agreement. After this is done you then you take (or email) the agreement to your title company and you provide them with the earnest money (This makes the contract binding, if you do not deliver earnest money then you don't have valid contract).

The title company will then begin their title search to find any liens or issues with the sale of the property.

Hope this helps. 

What's going on La'Terrius,

It all depends on the wording of your contract, most contracts will state what the consequence of a default is. All it takes is for a savvy seller to claim an inexperienced wholesaler is in default and you can find yourself in trouble.

My best advice is:

1. Always have a due diligence period 
2. Make sure you know your numbers extremely well

Never ride out a contract for 30 days just to tell a homeowner you can't close, that is looking for legal trouble. If you don't find a buyer let the homeowner know you don't plan to move forward before the end of that due diligence period.

Best of luck

Whats going on Jared, 

As you mentioned the issue that you guys will encounter is old data - (Houses that no longer look distressed, sold, rebuilt, etc) 

In my opinion driving for dollars in person is the best way to get to know your market better & see homes with distress in real time. So should you stop doing it virtually? Nope, do both. 

With that being said your conversion rate will depend on a lot more than just calls. Things to consider:

• Time of day you're calling
• Sales Skills
• Follow Up
• Real Estate Knowledge (knowing different solutions to different problems) 

Make sure to work on the things mentioned above and you will have success, also go through the pain of cold calling now so you can delegate the task in the future.

Best of luck 

Whats going on David,

I'm not sure what market you're in but a .05-1% response rate is what most can expect from a mailing batch, If you start with this metric in mind you can adjust your marketing spend. Keep in mind that lead conversion is a lot more than just sending marketing, it is:

Sales Skills, Following Up, Problem Solving, Etc.

If you are getting a lot of investors then yes add them to your buyers list even if you do not have any deals yet. The goal is to get some value from the marketing dollars you invested. You can also look into diversifying the lists you are using.

Best of luck.

Whats going on Tyonna,

Joint Venturing (JV) in wholesaling is when 2 parties work together on a certain deal.

The most common structure is you have a wholesaler that markets, finds a seller then enters into a contract - then you have another party who comes in with a buyer for that contract.

8 out 10 times I find the buyer myself but I have often JV'd with other investors. My rule is simple - I only JV with experienced investors since they have the right network, I also never do a 50/50 split since I'm carrying the marketing expense. If marketing cost me 5k and we split a 10k assignment fee then you can see that I only break even. 

Best of luck.

I'm closing deals from both sources. 

If I was a newbie I'd recommend starting with propstream since the membership includes a lot more than just data.

Whats going on Randall,

So the first question that comes to mind is - why did the original buyer back out? Could it be that they realized the price was too high? Make sure to double check your numbers to ensure it is a deal for the end buyer.

If you determined it is a deal then blast out the deal (craiglist, Facebook groups, biggerpockets, buyers list, etc.)

At this point if you are still having trouble finding a buyer it is either too high in price or in an undesirable area. 

If you decide to proceed with a hard money lender then the good news is that they will double check your numbers in order to lend - my rule of thumb is to never close on something I couldn't assign, I only close on deals that I didn't have enough time to try and assign. 

Best of luck. 

Whats going on Chris,

I am currently doing 8-10 deals in the Houston area and this is what I can say from experience.

You have differentiate between what is a good amount of marketing in your eyes vs. a good amount of marketing in the eyes on the market.

At this point in time if you're not receiving the leads you desire then this is the market speaking, you will have to reverse engineer how many leads you're receiving vs how much you're spending. This will allow you to up the marketing to hit your desired goals. 

Whats going on guys,

Let me chime in and give you my .02 cents.

Will you find off market deal on the MLS? Absolutely not, why? because the MLS is the definition of ON market deals. In order to land the best off market deals you will have to use the exact same methods that a wholesaler uses  (if you are a flipper/buy and hold investor you simply just close on the asset instead of assigning it) 

Nothing and I mean NOTHING will ever beat calling a homeowner directly. Keep in mind this is the cheapest form on entry since all other marketing methods are pricey. 

Action steps: Buy a list (wholesalingdata.com comes with addresses and phone numbers, Listsource is great too but you will have to skip trace it) Make sure the property has enough equity or else you will be wasting money/time.

Make calls and find motivated sellers - keep in mind this is a lot of work and you may delegate this, however I would still recommend you do this to learn the ropes before hiring someone. 

Best of luck.