All Forum Posts by: Stephen Morales

That's awesome Brendan! Congrats! I'm sure it will turn into a contract!

There's definitely a ramp up period of a month or so and it also depends on how big your lists are that you're giving them. If they're using a triple line dialer they should be knocking out 800 dials+ per day, a few dozen actual conversations and average 2-4 leads per day. You'll get some goose eggs here and there but it should average out. 

As long as you have a good follow up system in place you will have a nice pipeline by month 3. 

We do both net listings (in FL) and novation agreements. They are both very similar but they are not the same.

The true use of a novation agreement is to improve a property for the Seller without taking ownership. A great example of this is when we work with land owners and offer to develop the property further to resell paper lots or sometimes we go vertical with either a new home or a small multifamily building. In the easiest sense of doing a novation, you would just be doing a moderate rehab to get the property to ARV to sell.

We like offering an additional split to the Seller when we get higher returns than expected. Let's say a property is worth $250k and the seller is happy with $150k. It needs $30k in rehab and we pay all closing cost. We end up selling for $260k or $10k more than what we thought the property was worth. Any of those additional funds above our target mark would be split 50/50 with the Seller or sometimes we offer a more favorable share to the Seller to get the deal done. 

You can pretty much learn everything you need to know about wholesaling for free online. If you really need hands on training, I would work with another wholesaler that needs help with acquisitions or dispo and get paid a percentage of the assignments.

I understand some people prefer a course and that's fine, but a lot of these people doing courses are charging 5k-40k to people who can't afford it and pressure them to max out their credit cards. Which is obviously, very unethical. 

Hey @Helen Duncan,

Chiming in again, I would advise going to your local REIA events and networking there. You can also join Facebook groups that have buyers looking to purchase in your target market. Although that does take quite a bit of time to sift through those that are serious buyers, daisy chainers, or worse...fakes and scammers.

You can also go to a list building site and pull a list of cash buyers. For your area maybe you do a portfolio min value of $2-3M, own 3-4+ properties and buyer's that have made a purchase in the last 6 months to show that they are active. You can skip trace and build a list like this using a property data site. Introduce yourself, acknowledge their recent acquisition and ask them if they are looking to add any additional assets to their portfolio this year.

Cheers!

Hey KC,

If you need help finding tax delinquent land owners you can pull up a Tax Liens list on Property data sites. There are even some free ones if you look around enough :).

Hope this help!

Hi @Hector Escobar,

Where are you located? When we do novations deals we normally just do net listings unless we actually plan on making improvements to the property before putting it on the market. Net listings are 100% legal here in FL and it's a much simpler process than working a novation out. 

I would highly recommend doing that in your situation if you can. At the very least, I would make sure your brokerage is acting as a transaction broker in any of your novation deals. 

Welcome to BiggerPockets!

I've been licensed and doing wholesaling for about 10 years now, and one of the best tips I can give you is to stay EXTREMELY focused on one market when you're starting out. It takes time to learn how a market moves, understand pricing trends, and build relationships with local investors, other dealmakers, vendors and title companies in the area.

One of the biggest challenges for new wholesalers is "shiney object syndrome". It's why probably 80% (or more) of inspiring wholesalers either quit in 2-3 months or they're stuck doing 2-3 deals a year.

Jumping from one market to the next or one "winning strategy" to the next can slow your progress, drain your time, and burn capital before you ever gain any traction. Stick to one area, stick to the one strategy that is best suited for you, master them both and expand once you have a solid foundation.

Feel free to reach out if you ever need quick tips or want to discuss any strategies. I also provide my contacts with a free wholesaling workflow, sample contracts, a generic script and a list of helpful apps.

Good luck on your journey! The road ahead won’t be easy, but once you master it, the rewards will keep coming.

@Shema Cochrane, 

Great post! 

You absolutely want to make sure that whatever you're being consistent with is productive. Even though some days feel like a grind, as long as you put in enough action points everyday, the universe will answer you in kind. Deals will come your way!

Hey @Brenden Stadelman,

I have had the pleasure of speaking with Bob Lachance the CEO of REVA Global a few times and he runs a really tight ship. He has been in business for over a decade while other agencies have come and gone. In fact one agency we used to use literally had 500 agents in a headquarters in Philippines and disappeared almost overnight. 

The tenure of his company speaks volumes. For Real Estate prospecting and calls all of his VAs are trained for at least 30 days with calls and actually understanding the real estate sales process. When I got my RE license I only got two weeks of classes lol. 

I would definitely give them a try, obviously start out slow and if one VA isn't doing well you can always swap them out for another one. You should get recordings and samples of the VAs that you can choose from as well to help you with your decision.

There are a few out there but they vary in accuracy for sure. If you look around you can probably find some really good products that may provide what you need.