All Forum Posts by: Jeff McDermott

great points Dayo!

 The last one is a big one. Everyone thinks it's a scam but if you reword it to consignment or contract facilitator it sounds better.

Thanks for the help! 

What specific features would you all want?

We want to make sure that we build something that 80% of our test group would use so throw out some features and details.

We can pretty much build anything so get creative!

 will do!  As of now it's a 50-50 on the feedback and we wont start building unless we get to 80% positive. I'll keep you in the loop though!

 Well said! Exactly how I end my sessions, build a team and automate!

 True! I should have added more detail.  The agent knows its over priced but took it at a higher price just to get the listing.  Thats what I meant

When looking for sellers, why do wholesales look at the market value or even try to find deals at all?

What I did was connect with every listing agent in my area and they would bring me information directly to me.

They would list a home at $200K and tell me that they would take 180K and I already have buyers lined up to pay $190K so they think they are getting a deal.

I would give incentives to my agents for every $5K over my minimum I would pay them 10% so $500 every $5k.

The process works for me.  I learned early on that the big secret to wholesaling is access to information and relationships.  The rest falls into place.

Yeah, that's a good one!

What I did was I would get sponsors, lenders, agents etc. and have them pay for the advertising.  They get their name out to my list and problem solved!

Also, another big move I made early on, connecting with every buyers agent in my area and ask them what their buyers are looking for.  I didn't ask for access to the list, names, numbers etc. I was now providing the agent with a service, which in return I got a portion of their commission if I procured a deal plus I would get my cut from the wholesale which wasn't very much $2-3K but each deal would GROSS $5-6K and most of time with no money out of pocket for any overhead.

1. deals are easy to come by, even the ones on the market have some meat on the bone, it's all how you structure the deal.

2. money is the easy part, utilizing transactional funding for a few days and paying a few points, done.

3. Buyers list, here is how I build my list (who by the way are not only investors but ordinary people looking for a home) REALTORS! email, call, meet etc. every realtor in your area, they all have buyers looking for ****, your job now is to then to have your agent/your representative find you the house to fit the buyers needs.  

4. I am cool with $3k per deal, I negotiate with my agent upfront, I want to buy at 100K tops and the buyer list wants what I have and is willing to pay 105K and it costs me $2k to facilitate the transaction, who gives a ****!  It's easy money and I can do 4-5 of these every week.

The trick to wholesales is access to data.  Finding and engaging the right sources for this data and then executing your plan.  Oh, what works for me, don't be motivated by money!  Yeah the whole purpose is to make money but if you dont enjoy the process and you cant scale it into a business then you just created a JOB for yourself (nothing wrong with that at all) but if you can master a process and then duplicate it nationwide small chunks at a time then you have a business that pays you without doing any work!

Just my 2 cents

I am giving a speech to a group of investors/new wholesales and I wanted to get some case studies from outside sources.

I never found that finding deals or finding money was the hard part it was having to stress about if the end buyer was going to close or not.

What are your thoughts on this topic, what is the hardest part of wholesaling for you?