Podcast
Questions and Answers
List one method mentioned in the content for finding cheap homes from motivated sellers: ________.
List one method mentioned in the content for finding cheap homes from motivated sellers: ________.
Driving for Dollars
What is one benefit mentioned in the content that you provide to sellers in negotiations?
What is one benefit mentioned in the content that you provide to sellers in negotiations?
According to the content, 70% of deals will come from following up. Is this statement true or false?
According to the content, 70% of deals will come from following up. Is this statement true or false?
True
How many calls per contact are recommended for best results in the content?
How many calls per contact are recommended for best results in the content?
Signup and view all the answers
Match the following benefits provided to sellers in negotiations with their descriptions:
Match the following benefits provided to sellers in negotiations with their descriptions:
Signup and view all the answers
What is wholesaling in real estate?
What is wholesaling in real estate?
Signup and view all the answers
What does ARV stand for in real estate?
What does ARV stand for in real estate?
Signup and view all the answers
Which of the following are real estate lingo terms? (Select all that apply)
Which of the following are real estate lingo terms? (Select all that apply)
Signup and view all the answers
Repair cost matters to our cash buyer. We make offers based on this Estimated Repair ____________ sheet.
Repair cost matters to our cash buyer. We make offers based on this Estimated Repair ____________ sheet.
Signup and view all the answers
Match the neighborhood class types with their descriptions:
Match the neighborhood class types with their descriptions:
Signup and view all the answers
Study Notes
Module 1 - Introduction
- Wholesale real estate is buying and selling real estate contracts, acting as an intermediary between sellers and buyers, usually investors.
- Wholesalers contact owners of distressed properties and convince them to open a wholesale contract.
- Goal setting:
- Find distressed property/distressed owner
- Make an offer on Property
- Sign a Purchase Agreement with the owner
- Find a Cash Buyer to pay more than what you have under contract for
- Close on the Property
- Collect Your Check
- Repeat two hours a day, 5 times a week
Real Estate Lingo
- ARV: After Repair Value (how much a property is worth after it's completely renovated)
- Comps: Comparable Sales (what are the comparable sales in the area)
- Free & Clear: No debts, mortgage, or liens (A property that is paid off)
- Turnkey: Property that requires no rehab and is move-in ready
- Property Specialist: Someone to take pics of the property (makes you sound more professional)
- Vacant: A property that has no one living in it
- Occupied: A property that has someone living in it
- Absentee Owner: Homeowner that does not live in the property they own
- Pre-Foreclosures: Process has begun for property to be repossessed
- Financial Partners: Our cash buyers
- HUD 1/Closing Statement: Official document all properties receive when the sale of a property takes place
Sites We Will Be Using
- Podio: Free forever
- List Source: Will be used during the course
- houseflipping9to5.com: Free 7-day trial
- https://www.textmagic.com/: Will have to pay for, will be used during module
Property Types
- Rowhomes
- SFH (Single Family Home)
- Condos
- Townhomes
Neighborhood Class Types
- A Class Neighborhood: Downtown area, high-paying jobs, average salary $100k+
- B Class Neighborhood: Suburban areas, average salary $70-100k
- C Class Neighborhood: Can be in the city or suburbs, average salary $40-70k
- D Class Neighborhood: Low Income
Business Set Up
- Create an LLC (incfile.com)
- Business Email
- Logo
- Expensify (mobile app, business tax write-offs)
- Google Apps - Docs, Sheets, Drive
- CRM - Customer Relationship Management (Recommended: Podio.com)
- Sign docs electronically (Hello sign, DocHub)
- Separate phone number for business calls (Google Voice, GoDaddy, Sideline, CallRail)
Module 2 - Real Estate Calculations
Finding Comparable Sales
- DO NOT COMPARE OVER HIGHWAYS
- Find properties in the same neighborhood (preferable 3-6 blocks NOT ZIP CODES)
- Same # of beds, baths, square footage, style of home
- Year it was built
- Aim for 3 comparable houses sold in the last 6 months
- Always click both (MLS and public record)
Determining the After Repair Value (ARV)
- Homeowner neighborhoods: Take the average of 3 comparable properties, choose comps close to the property
- Rental neighborhoods: As-is comparable sales - no ARV, look for the lowest a cash buyer paid for
Estimating Repair Cost
- Based on as-is conditions, look for similar properties in solid condition
- Estimated repair cost based on property size and type of repair:
- Light: $10k - $30k
- Average: $25k - $55k
- Heavy: $50k - $100k
Module 3 - Finding Deals
Finding Hot Spots to Find Deals
- Google address to see the property and area
- Houseflipping9to5.com (propstream)
- Redfin (free)
- Zillow.com (free)
- Realtor.com (free)
- Trulia.com (free)
List Source: Steps to Finding Hot Zip Codes
- Create your own list
- City/state
- Property type (Townhome, SFR)
- Equity % (99/100%)
- Last market sale date (Last 12 months)
- Options tab (Absentee Owned)
- Trustee-owned Properties (Exclude)
- Corporate-owned Properties (No Preference)
- Address Completeness Requirements (Both Mailing and Property address complete)
Module 4 - Motivated Sellers
Types of Motivated Sellers to Target
- Code Violations
- Evictions
- Vacant
- Expired Listings
- Bankruptcy
- Distressed Homeowners
- Pre Foreclosures
- Foreclosures
- Inheritances
- Divorce
- Tax Delinquents
- FSBO
- Aged Homes
- Aged Owners
- Aged Homes with Aged Owners
- Water Liens
- Water Delinquents
- Hospital Liens
- Tax Liens
- Irs Liens
- HOA Liens
- Pre Inheritances
- Personal Representative Leads
- Attorney Information
- High Equity
- Negative Equity
- Free and Clear
- Reverse Mortgage
- New Homeowners Leads
- Reo / Bank-owned Leads
- Absentee
- Municipal Liens
- Multifamily Leads
- Cash Buyers
- Permit Violations List
- Bored Investor Leads
Module 5 - Talking to Sellers / Negotiating
Four Pillars to Cold Calling
- Motivation
- Timeline
- Condition of property
- Seller’s Price
The Benefits You Provide
- We buy All Cash
- We Buy in As-is Condition
- We Pay All Closing Costs
- There are no realtor fees or commission fees
- We can close as little as 14 days
Module 6 - Cash Buyers
Types of Cash Buyers
- Buyers who use cash
- Buyers who use private money or hard money (financing)
Finding Cash Buyers to Buy Your Properties
- Affordablehousing.com
- Houseflipping9to5.com
- Facebook marketplace: Real Estate Groups
- Realtors
- Live Auctions
- Bandit Signs
- REIAs (Real Estate Investors Association)
- Partner up with other more experienced Wholesalers (jv)
- Opencorporates (For LLCs)
- Cashbuyersplus.com### Negotiating with Cash Buyers
- When dealing with a cash buyer who needs more time to close, request more earnest money than usual.
Understanding Cash Buyers
- Important questions to ask cash buyers include:
- What types of properties are they looking to buy?
- What location are they interested in?
- What is their target price range?
- Are they using cash or private money for the purchase?
Contracts in Real Estate
- A Contract of Sale is between the seller and the buyer (you).
- An Assignment Agreement is between you and the end buyer (cash buyer), assigning your rights to the contract.
- Having a contract with the seller gives you equitable interest in the property, meaning the seller cannot sell to anyone else.
- When speaking with sellers, use "Agreement" instead of "Contract".
Building a Dream Team
- A Virtual Assistant (VA) can be hired to cold call and qualify leads for you.
- Websites like Upwork and intergriapartners.com/mit-smith can be used to find and hire cheap labor for your business.
- Job postings should include details such as:
- Job title: Real Estate Cold Caller (Lead Generation)
- Skills required: cold calling, lead generation, scheduling, data entry, sales, and outbound sales
- Industry: real estate
- Duration: 3-6 months
- Skill level: Intermediate
- Hourly range: $3-$7 per hour
- Job description: making 200 calls per day, 5 days a week, with a provided script
Training Virtual Assistants
- Role-playing with VAs helps meet expectations and improves performance.
- Screencast-o-matic can be used to record tasks, allowing VAs to study and learn.
- Bi-weekly or monthly meetings help build rapport and a culture of teamwork.
- Providing bonuses when deals are closed motivates VAs.
- Paying VAs on time is essential.
Daily Communication with VAs
- WhatsApp and Slack can be used for daily communication with VAs.
Challenges with Virtual Assistants
- Time differences can be a challenge, especially if VAs are located in the Philippines (12-hour difference).
- Adverse weather conditions can impact VAs' internet connectivity.
- Cultural differences and American conversational norms can cause misunderstandings.
- English-speaking skills can be a challenge for some VAs.
- Training and role-playing with VAs can help overcome these challenges.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Learn the fundamentals of real estate wholesaling, including goal setting, industry lingo, and property types. Understand how to set up your business and navigate the real estate market.
