100 Percent Financed. Getting started in Wholesaling. Sample ebook

Transcription

1 100 Percent Financed Getting started in Wholesaling Sample ebook Making quick profits in real estate without using your own cash or Grey Rose Consulting, LLC. All Rights Reserved Page 1 of 11

2 Table of Contents 1. What is wholesaling?...page 3 2. Motivated sellers.page 6 3. Buyers...page Final Words...page 30 Disclaimer The information provided in this ebook is for informational purposes only. The partiers responsible for writing this ebook are not real estate brokers, mortgage brokers, attorneys, accountants, or tax professionals. Any legal or financial advice given is the opinion of the authors based on experience and may be considered unconventional for some. The information in this ebook is not promising to be error-free and it is not intended to be a foolproof method or formula to acquiring real property. You should always seek the advice of a professional before acting on something that the authors have published or recommended. Any amount of earnings disclosed in this ebook should not be considered average. Please be understanding that there are some links contained in this ebook that the authors may benefit from financially. The materials in this ebook may include information, products, or services by third parties. Third Party Materials comprise of the products and opinions expressed by their owners. As such, the authors do not assume responsibility or liability for any Third Party material or opinions. The publication of such Third Party Materials does not constitute my guarantee of any information, instruction, opinion, products or services contained within the Third Party Material. The use of recommended Third Party Material does not guarantee any success and or earnings related to you or your business. Publication of such Third Party Material is simply a recommendation and an expression of an opinion of that material. Page 2 of 11

3 Chapter 1: What is wholesaling? According to Wikipedia, a wholesaler is an investor who signs a contract to purchase a property from a seller and then entering into an agreement with a third party to resell the same property at a higher price for a profit. All rights to the original purchase contract are assigned to the new buyer and the new buyer pays an "assignment fee" to the wholesaler in order to gain all rights to purchase the property at the original purchase price. The original purchase contract usually has an "inspection period" which allows the wholesaler to back out of the contract and not close on it if they do not find a buyer to assign their contract to. Many wholesalers have no intention of actually purchasing the property and simply use wholesaling as a tool to locate properties for other investors or rehabbers. Wholesalers that are able to identify good investment opportunities for other investors can make a good living by locating these properties and then assigning the rights to them to these buyers. The name of the game is marketing and networking. Your only costs involved in this transaction are marketing. Therefore, a wholesaler has minimal risk since he or she is not putting money down as a down payment. Some people are of the opinion that wholesaling is fraudulent misrepresentation since the wholesaler does not actually intend to close on the property themselves. However, wholesaling is perfectly legal in the United States and every real estate contract allows the buyer an inspection period and any amount of deposit that buyer and seller agree to. Wholesaling is done in many industries outside of real estate. When done successfully, the seller is often unaware that the wholesaler is not really purchasing the property. For the purposes of this ebook, we will show you how to locate single family houses that needs repaired before reselling it for a quick profit. You will learn how to find motivated sellers, buyers, and everything else you need to know in between. Just to give you an idea of how quickly you can start making money, take a look below: *Typically, the wholesale process takes days to close on your first deal. *Typically, a wholesaler works about five to ten hours per week. *Typically, wholesalers are earning $2,000 - $20,000 per deal. You can expect to make $5000 per deal on average. This makes wholesaling the highest paid (dollar per hour) job in real estate. For those of you who have a day job, wholesaling can take some time. There are two valuable resources in this world: time and money. If you don t have the money to flip or buy cash-flowing rental properties, then you Page 3 of 11

4 better have the time to wholesale these deals to those who can. Wholesaling can be done on a part-time basis as long as you have a sound marketing scheme working for you. Keep in mind that wholesaling is a job and is not considered passive income; it s quick income. If you don t wholesale, you don t eat. So, if your goal is to quit your 9 to 5 in the near future, you should use the proceeds of each wholesale deal towards the down payments on rental properties and/or to improve your credit situation (pay down debt or hire a credit repair company), so you can qualify for mortgages and business credit. In other words, use your quick income to finance your passive income. So, if you don t wholesale a single house all year, you still have rent checks arriving in your mailbox every month. If you are interested in learning how to buy and hold real estate for passive income, go to our ebook page on and buy the Buy and Hold 101 ebook. We will show you how to obtain cash-flowing rental properties with using little to none of your own money. The authors of this ebook are active real estate investors in the Atlanta, Jersey City, Chicago, and Pittsburgh markets. Collectively, we have been wholesaling real estate successfully for 3 years now and have wholesaled over 30 properties so far. Most wholesalers start from scratch: no money, bad credit, and no prior knowledge of real estate investing. Most of the deals we have done within the last year have been with clients we coached! Therefore, it s important for you to network and work with other wholesalers. Who knows, you may find the motivated seller and they may find a rehabber who wants the deal; a match made in heaven! If you are interested in receiving coaching, us at 100percentfinanced@gmail.com. Starting out, all you need is a pure desire to learn mixed with a focused determination to make it happen. We believe you are reading this because you have that same desire and determination to make it happen. We are here to give you a realistic road map to get to your first few deals. Mindset Before we show you the skill set, we have to go over the mindset, for the mindset always trumps the skill set. Your mind is the real key to breaking through and reaching your true potential as a real estate wholesaler. Most people give up on their dreams and personal goals prematurely because they can't see past their current financial situation. Some people let others crush their dreams. Others can't stay dedicated long enough to make it happen as a result of other obligations. We understand. The reality is most successful people fail at some point when pursuing their endeavors. Actually, most successful people go through many hardships and Page 4 of 11

5 failures in their businesses and personal life on their path to success. However, they don t let that stop them. The key to their eventual or continued success is their ability to do 2 things: 1) Learn from their mistakes 2) Keep trying until they become successful Do you have what it takes to push through the pain of uncertainty and the time it takes to get over your own learning curve? If so, we are here to help. After reading this ebook, feel free to us with a question or two you may have. This life will have ups and downs and it may not be easy at times. Do your best to remain humble, coachable, and dedicated. You are on your way to closing some deals and putting extra cash in your pockets. So, let s get into the meat of the matter and show you how to locate these quick profit deals. Page 5 of 11

6 Chapter 2: Motivated Sellers There are a few effective strategies for finding motivated sellers. First, let s define what a motivated seller is. A motivated seller is a property owner who is willing to sell their property for a VERY low price. Often times, they need to sell quickly due to the following reasons: *Divorce or separation *Bankruptcy or foreclosure *Death in the family and cannot afford to live there or simply don t want to live there *Job change in which they had to relocate to another area and cannot afford two housing payments *Change in employment status, such as being laid off, downsized, fired, etc. *Inheriting an unwanted property and don t want to be real estate investors *The owner is a tired landlord who wants of the real estate investing business A wholesaler can market to these individuals and help alleviate them of their pains of owning an unwanted property. This is where you come in to help solve some of their problems and make a quick profit as a result. Driving for Dollars and using Direct Mail to find vacant properties The first way to finding motivated sellers is to start driving for dollars. Driving for dollars is a great way to find pockets of real estate that are not listed to the public yet. Therefore, you may find a sweet deal around the corner from where you live that s not listed with a Realtor or on the internet. This means less competition for you, for the average real estate investor does all of their investing online! Go out and find at least 5-10 vacant properties in areas where people want to live. Bring a pen and a notepad with you. Do not drive in war zones but in working class neighborhoods. Keep an eye out for For Rent signs, overflowing mail, tall grass in the front yard, boarded windows, disconnected gas meters, fire damage houses, and For Sale by Owner signs, etc. Drive in areas you are considering investing and take separate routes when driving home from work to scope out vacant properties. A good day to drive for dollars is on a trash day. Obviously, a vacant house will not have their trash out consistently. Again, some of these properties can be boarded up, have a lot of mail in the mailbox, falling apart, or in good shape. Your job now is to find as many vacant properties as you can and then look up the owner in the county tax assessor s website of where the property is located. The website will let you know who owns it (person, investment company, bank, etc). The Page 6 of 11

7 mailing address and subject property address may not match at times. These are the best properties to wholesale as well as the ones in which the property owner lives out of state! Look for a separate mailing address on the tax assessor s website or county clerk of recorder website so you can send a letter or postcard (referred to as direct mail) to express interest in buying the property. If there is no separate mailing address, send a letter to the vacant property, for that mailbox may have a forwarding address to another address that the property owner set up. How often should you send direct mail to a property you want to wholesale? It s entirely up to you and your marketing budget. One wholesaler spends $600 per month on marketing in a two month period and closed on two wholesale deals for $9,500. You don t have to spend this much. Direct mail tends to be more expensive than bandit signs (we will discuss bandit signs later). Touching base with all leads at least once a month is good. With all efforts, make sure you are persistent. As soon as you find out who owns the vacant home, you can take it one step further by getting a phone book and look up the property owner s phone number. You can also search for the phone number on anywho.com, whitepages.com, or 411.com. If an investment company owns the vacant property, send a letter over to the mailing address. We will discuss the direct mail and scripts you need to have when you get in contact with a property owner later in the ebook. As you drive for dollars, give the mailman your business card if you found a vacant house and let him know you ll pay him a referral fee as soon as the house is sold. That way, you are expanding your reach to have others find deals for you. Using the County Tax Assessor website to find motivated sellers Go to the county tax assessor website and pick a target area to research and click on each property to see if the property owner s address is different from the subject property listed to find prospects. Property owners with a different mailing address than the subject property tend to be more motivated to sell (motivated sellers). For example, if the vacant subject property is Main St. Atlanta, GA and the owner address is Main St. Atlanta, GA, this may not be a prospect. But if the subject property is Main St. Atlanta, GA and the property owner s address is 1110 Sellers Way, Orlando, FL, we may have a prospect. When we have a prospect or good lead, a letter will be mailed to the property owner expressing interest in purchasing the property. A sample letter for motivated sellers is below. Feel free to use it and edit it to your specifications. Click on the link Sample Direct Mail. Page 7 of 11

8 Looking through tax records can be time consuming. However, there are tons of list sites that you can use to get access to out-of-state owners, who happen to be great leads. One website is For a onetime fee or monthly rate you can pull lists of out-of-state owners and properties that have a certain amount of equity and send a letter/postcard to the owner. With direct mail, you don t have to mail out each postcard or letter yourself. There are companies online that will do this legwork for you, such as Click2mail.com is a great time saver. All you have to do is upload the out of state owner list you compiled from listsource.com to an excel spreadsheet and submit to The Click2mail.com service will print the letter, place it in a stamped envelope, and send the mail pieces for you. Keep in mind that the old way of mailing out letters has its benefits. The letter can be typed, but if you address the envelope with blue ink and make it look personal, you may receive a higher response from sellers. Also, signing your name in blue ink on the typed letter can increase your response rate. You can hire an employee and pay this person $1 for every sealed envelope that gets drafted, signed, placed in envelope, and mailed out. The $1 includes labor and materials. Using the Internet to Attract Motivated Sellers and Buyers Before you attract motivated sellers and buyers online, you need to set up accounts which are critical to your wholesale business. These accounts aid are set up for the purposes of advertising and facilitating communications between you and buyers and you and sellers. The great thing about most of these accounts is that they are free and easy to set up. The first free account you need is a Gmail account. You will begin marketing campaigns for both buyers and sellers. In order to receive communications from your prospects you will need to establish new s and phone numbers. You will need AT LEAST two new real estate related Gmail accounts that are easy to remember: 1) Create a Seller Gmail account 2) Create a buyer Gmail account. An example would be 12345jerseyhomebuyers.com for your seller account. Page 8 of 11

9 Now that you have a Gmail account, you can set up a Google Voice account that links to it. Google Voice provides you with a free phone number (VOIP) for your lines. Go to (the link shows you how to set it up step by step) and create a voice line for your buyer account as well as your seller account. Use the address you created for the corresponding phone lines. Each phone line you create can be forwarded to your cell phone or your office phone. Once you set up your lines, go to the settings tab in your Google Voice account and change your settings to suit your needs. You may want to set up the following settings below: *Call screening OFF (when people call it sounds like a regular phone line) *Caller ID incoming *Click - Display my Google Voice number (Shows your Google Voice number when someone calls you. With this setting clicked you will know the call is about your business.) *Caller ID Outgoing *Click - Display my Google number (Shows your google number when you make outgoing calls - people will see your Google Voice number and not your personal phone number) *Do Not Disturb *For Missed Calls Click - Place missed calls in the inbox (Sends the missed call to your so you can call them back even if they do not leave a message) *Click - Send missed calls to my (your - (This will send the calls to the you designate) *For Call Options, Click - Enable Recording (4), Switch (*) and Conferencing options on inbound calls Global Spam Filtering (This will allow you to record important calls if you are out and about) *Click - Send calls and text messages from numbers identified as spam by Google directly to the Spam folder (this will block out unwanted SPAM telemarketers and texts) Now, it s time to set up your classified websites, so you can generate leads. It s important to let people know that you buy and sell houses online, so you can get your Google Voice phone numbers ringing. Keep in mind Page 9 of 11

10 that if your phone isn t ringing, then money is not being made. Craigslist is a great account to have in your toolbelt. You can create your Craigslist accounts at A) For your SELLERS - Linked to your SELLER phone line and you created above B) For your BUYERS - Linked to your BUYER phone line and you created above It is also advisable to create a Backpages account. Got to follow the instructions below. 1) For your SELLERS - Linked to your SELLER phone line and you created above 2) For your BUYERS - Linked to your BUYER phone line and you created above Another account to set up is Postlets: This site will post the deals (properties) you have available all over the internet on many websites (too many to name here). Once you have all of these accounts going you will need to start attracting buyers and sellers to your phone line. You can view samples of our seller and buyer ads by clicking Buyers and Sellers Sample Ads. These ads need to be posted each day, so they will always be on the first page of each classified website. Make sure you update the ad every three days. You can update it by changing the title. The more creative your headline the more chances you will receive a response from someone looking to sell. The "I buy houses" headline is okay but it is very generic. Over 90 percent of wholesalers use this headline. Why would your potential seller choose you over the other 90 percent? If you were a potential seller and saw the headline, Tired Landlord and need cash now?" you may be inclined to click on the ad, right? Try to use the seller s motivation (divorce, foreclosure, bankruptcy, etc) in the headline. Now, let s look at some other ways to attract motivated sellers. Using Bandit Signs to Attract Motivated Sellers [THIS IS A SAMPLE EBOOK; HOWEVER, TO READ THE REST OF THIS EBOOK, CLICK ON THE LINK BELOW TO PURCHASE IT AT A NOMINAL COST. WHAT S $10 COMPARED TO AN EDUCATION THAT CAN POTENTIALLY PUT $5000 IN YOUR POCKET OFF OF ONE DEAL?] 100 Percent Financed_Wholesaling 101 complete ebook Page 10 of 11

11 Final Words Be persistent. Devote about ten hours a week to your wholesale business, network and keep learning. Don t just take our advice, but take the advice of other wholesalers in your local market who are doing it successfully. People who have the abundance mentality would love to share what they know with you. All you have to do is ask! Keep in mind that wholesaling is a numbers game, so you may have to send out a hundred direct mail pieces to generate a few calls. Out of the few, one or two may be qualified leads. You only have to close on one. Aim to wholesale one deal a month and use the proceeds to improve your credit and save up for down payments. Then, you ll be ready to flip for massive profits or buy in hold for passive profits. If you have any questions feel free to contact us at 100percentfinanced@gmail.com. If you are looking for coaching, us and we will craft a coaching program to suite your needs. To Your Success, Juan P. Page 11 of 11