All Forum Posts by: Paul Sorgi

You have spoken to your prospect Adam and BEFORE you leave your house to go see his you want to make sure you have a deal.

Based on your scenario will assume ARV of 345k. To wholesale this you are going to have to leave some meat on the bones and I will also assume you do not have any cash buyers with specific price points. Here I would start by using the the 70% rule. ARV * 70%-repairs-AssignmentFee=MAO until you develop a solid list of cash buyers and know their specifics.

During the Conversation with Adam you discovered he is underwater, going through a divorce (going to need his spouses signature), and NO Equity. If you are looking to wholesale you will need to short sale the property. You will need the assistance of a Short Sale Negotiator or Real Estate Agent who handles short sales. You would get the property under contract your states P&S should work and you will use your Attorney who can advise you legally. Of course you are putting this under contract for the price we established above.

For you to even head over to Adams's house you will want to know if a) a Short Sale is an option if so b) is your wife on board? You will want her phone # as well.

The other issue to consider is does Adam even qualify for a Short Sale and this is where having a good short sale expert on your team is crucial.

@Account Closed you didn't throw a simple transaction out there but it is something you will run across. Besides wholesaling you could Lease option or take over subject to and place a tenant/buyer in the property.

Let's assume everything works out perfect. You get it under contract (you can get a contract from your attorney, Real estate agent if using them for the SS) You do want to make sure the contract is assignable or you take title in an entity and you can then sell your position in the entity. (your Attorney can help with the details)

Once it is approved by the bank and you have a signed P&S you can legally begin to market the property. Once you find your buyer sign an assignment of contract agreement (your attorney can get you one) and collect your money. I advise this happening at the closing with the help of your attorney.

All the people I mentioned above are needed and this is the mistake most newbies make they don't start building their team. If you go to your local REIA meeting I am sure you could find an attorney or at least find someone to recommend one. The key to successful Real Estate investing is to Network, Network, Network.

Tons of advice here and I am sure it has already been said but I am going to repeat it. Real Estate investing is a Team Sport and the most important thing I believe you can do is Network then do more Networking!

If you learn how to recognize a good deal then you can work on building a partnerships but you will only find the information and people you need through Networking.

@Account Closed great questions. Lets examine the first part is there a criteria for a seller? Your marketing should push/pull your sellers to you by getting them to take action by calling or filling out a form on the internet. They will be calling based on their motivation which could be one or more of the following: financial problems, inherited, tired landlord, tired home owner, moving, downsizing, upsizing, etc. You are searching for those that WANT to sell and sell with out the hassles of showings, agent commissions, fixing things etc.

To answer the next part of the question I would have to say we are always focused on their motivation which in other words is their "problem" that needs to be solved. We are the problem solver and can make it go away by buying the home with as little hassle and as quickly as possible if that is what they want.

I would also like to add that not every one that calls is as motivated as we want them to be. I take them through a scripted conversation in order to collect the data necessary to determine their level of motivation. Then if it warrants I book an appointment to come out and see the house and will usually make a verbal offer based on my diligence to that point.

I already have performed my comps, I already have a price range that the seller was willing to accept or even the least amount of cash they want, and now at my visit I have a good idea of my rehab costs. I have what I need to make an offer.

Need to sell vs Want to sell they both work. It is a numbers game and you have to fill the pipe line and filter the leads to find the good deals.

I get many of my prospective properties from my real estate agent. I also do my own marketing which includes networking, Signs (bandit, car), Direct Mail (absentee owners), craigslist, driving for dollars, etc.

I strongly agree with @James Peoples . If you have the list then send it out the worst thing that will happen is you will get a few phone calls from PO home owners the best thing that will happen is someone will call and say buy my house NOW! Send those letters today.

@Account Closed

The buyer or the seller? Good question and my answer is both. Your day to day activities should always include networking and marketing for deals and adding new buyers to your list. You can find cash buyers from networking at REIA meetings and Landlord Associations. You can find sellers while driving around, telling people you buy houses, bandit signs, Direct Mail, door knocking, radio advertising, etc.

As you build your list of buyers focus on cultivating your relationship with them. Most wholesalers sell 80% of their deals to a handful of people so you don't need a very large list to get started.

Lets get started!

l

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Welcome @Chris Vaughan wish you and your wife an awesome successful venture with your first deal!

CHAOS!

@Stephen Camardo