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How to wholesale your first piece of real estate with under $500.
[A thread]
Step 1: Finding a motivated seller. This is someone who is MOTIVATED to sell their property for cash, under market value. Motivations could be divorce, tired landlords, etc.
[A thread]
Step 1: Finding a motivated seller. This is someone who is MOTIVATED to sell their property for cash, under market value. Motivations could be divorce, tired landlords, etc.
There are many ways to market to potential sellers but let’s keep it simple.
Cold calling + Text blasting.
You can find lists (names + addresses) on sites sich we list source, Fiverr, etc and what you’ll have to do is called skip tracing.
What is skip tracing?
Cold calling + Text blasting.
You can find lists (names + addresses) on sites sich we list source, Fiverr, etc and what you’ll have to do is called skip tracing.
What is skip tracing?
Skip tracing is researching data to identify people through their address or full name to obtain a phone number. It’s never 100% accurate, but this is the best way to find the potential sellers for each property.
Companies do this for you for a fee. ($100-$200)
Companies do this for you for a fee. ($100-$200)
Now you’ve bought and skipped a list of potential sellers. Time to market.
Cold calling would obviously mean calling each number with a certain script to inquire if the seller would be interested in selling their property.
(I hire someone to do this for me)
Cold calling would obviously mean calling each number with a certain script to inquire if the seller would be interested in selling their property.
(I hire someone to do this for me)
Text blasting is as simple as placing the skip traced list into a software such as TextMagic and sending out a bulk message, again inquiring if they are interested in selling their property.
This is a great way to wildfire and tap lots of leads at once.
It’s a numbers game.
This is a great way to wildfire and tap lots of leads at once.
It’s a numbers game.
Now you’ve found someone who wants (more like needs) to sell their property. Assuming it’s analyzed correctly (won’t go into that on this thread.) You’be connected with a seller who will take 65% of market value for a cash offer on this property.
Let’s say $70k
Let’s say $70k
“But I don’t have $70k?!”
No problem. When you send the seller an offer, your contract will state you will buy OR ASSIGN this property by (xx/xx/xxxx) Try to put this day 14+ days out.
This gives you time to ASSIGN the contract to a buyer who will purchase it.
No problem. When you send the seller an offer, your contract will state you will buy OR ASSIGN this property by (xx/xx/xxxx) Try to put this day 14+ days out.
This gives you time to ASSIGN the contract to a buyer who will purchase it.
Keep in mind we are “under contract” with the seller for $70k. How much do you want to make? Let’s say $10k.
We market the property for $80k.
Even though it sounds scary, finding buyers is the easiest part. If it’s really a DEAL, a simple post in an popular FB chat should do.
We market the property for $80k.
Even though it sounds scary, finding buyers is the easiest part. If it’s really a DEAL, a simple post in an popular FB chat should do.
Your mindset shouldn’t be “I have to find someone to give me $80k
It should be “I’m allowing someone to buy this investment for $80k, which will make them 10s of thousands in profit.”
Go to FB and type in CASH BUYERS + YOUR CITY. Hopefully there are some groups in your area.
It should be “I’m allowing someone to buy this investment for $80k, which will make them 10s of thousands in profit.”
Go to FB and type in CASH BUYERS + YOUR CITY. Hopefully there are some groups in your area.
Someone offers you $78k for the property, and wants to close next week.
So to accept this offer, you would need the buyer to send you this on paper with a valid proof of funds.
Quick closings, cash offers, and low DD periods are signs of a solid offer.
So to accept this offer, you would need the buyer to send you this on paper with a valid proof of funds.
Quick closings, cash offers, and low DD periods are signs of a solid offer.
It’s time to close.
You’ve found a seller willing to sell their house for $70k within 30 days and a buyer willing to purchase it in 7.
Submit all of these documents to a closing attorney near you(simple google search) and once the attorney has researched title, you set closing
You’ve found a seller willing to sell their house for $70k within 30 days and a buyer willing to purchase it in 7.
Submit all of these documents to a closing attorney near you(simple google search) and once the attorney has researched title, you set closing
Your buyer and seller must be closing on the same day.
Ask your attorney about a “double closing.” This is where you use the $78k from your BUYER, to purchase the home from the SELLER, and immediately sell the house to the BUYER. It’s simultaneous.
You walk away with $8,000
Ask your attorney about a “double closing.” This is where you use the $78k from your BUYER, to purchase the home from the SELLER, and immediately sell the house to the BUYER. It’s simultaneous.
You walk away with $8,000
