All Forum Posts by: Yoann Dorat

@Justin Sawyer you won't find any deals on the MLS, you need to find distressed homeowners through a good mix of inbound/outbound marketing.

If you don't provide any value (aka off market discounted deals) your end buyer won't need your help, they can find the MLS deals by themselves.

@Justin Sawyer the cheap method: blast it out on Facebook REI groups and on Craigslist.

The sophisticated method: pull a lit of cash buyers in your area from PropStream or listsource, skiptrace it and coldcall

@Arsen Atanasovski most lenders won't touch the city except if your ARV exceed $100k.

Look into the suburbs you will have way more options.

@Chad Gray I think a double closing is the only way to truly hide your assignment fee. But if your concern is just hiding it from the seller... you just have to split the closing package between buyer side and seller side, the only one who knows your assignment is the end buyer, it's not disclosed on the seller side HUD.

@Scott Wolf I’m in Boca as well, let’s connect

@Thomas Kelly I would offer 130k, sell it for 150k, the end buyer gonna spend 20k between rehab & closing cost, all in for 170k, which is roughly 70% ARV

You can play with those numbers a little bit but I wouldn’t go much higher than that because you’re in Illinois and you can’t wholesale there, you gonna have a to double close which increase your cost.

Also from what I’ve heard it’s not a very landlord friendly state so I would expect any investors to want a minimum of 30% equity.

@Sean H. I run a large wholesale operation in the Midwest and I also buy from other wholesalers from time to time.

I'm on the buyer list of probably +300 wholesalers in our markets and I have a VA filtering them out (too time consuming), 95% are junk we filter out in 2 minutes, on the residual 5% we squeeze 1 to 2 deals per months.

The stats were better pre-covid but nowadays everybody ask over retail, it’ll eventually get better once the market cool down.

@Logan Eckstein congrats on doing the first steps, don’t worry it will get easier overtime.

Keep in mind when people are cursing at you that most of the time, you’re not the problem. Something else happening in their life at the same time is. So you have to build yourself a shield, keep dialing, build rapport and perfect your craft along the way.

A piece of advice on Marketing: RVM can get you in trouble, they change the laws in 2019 and you can get a hefty penalty doing that + the rate of conversion is very low.

Cold calling is the most cost effective way and if you have the budget you can get a text blast software (even though they will shut that down in a few months, it’s still working for now) and down the road invest in some inbound marketing like PPC, the conversation is usually smoother when the seller reach out to you instead of you bugging them. But don’t do that until you’re confident in your ability to close as it’s expensive!

Bottom line: keep dialing ;)

@Matthew Orton $55 seems overpriced, I’m pretty sure the agent is not spending 1h on the phone for each complaint… You can probably renegotiate with your PM or at least get it capped per month. Looks like they’re making a hefty markup.

I would also charge back the $55 to the tenant, and if the problem persists evict them.

@Anthony Watkins your last phrase says a lot... you're 4 weeks into it it's way too soon to expect results! Wholesaling (and sales & marketing in general) is all about consistency, everything works from postcards to text, cold calling, PPC, etc as long as you're consistent, usually, I recommend trying any marketing channel for 6 months before you decide if it's worth it or not. Some people wait 1yr before they get their first deal under contract. 

2nd issue, you're talking about reaching out 200 times in 4 weeks, each of my cold caller dials on average 970 numbers and get connected to 72 people per day, you have to keep dialing if you want to see results. 

But you're right on point... Wholesaling has been falsely advertised as something you can do with little to no money... marketing costs a lot of money and you better watch where you spend those dollars. 

I agree a very small percentage of sellers are going to fit the "distressed" box and be happy with a 50ct/$ cash offer, this is why you should have several other strategies to offer (listing it as an agent, buy&hold, fix and flip, seller finance, sub to...) 

And yes people get upset sometimes with outbound marketing, doesn't matter your industry it's the price to pay... if you cant handle that, try inbound marketing like PPC they are usually softer. 

Good luck,