Virtual Flips QUICK Start Guide The Ultimate Virtual Real Estate wholesaling 7 step action plan By Christopher Seder
Copyright 2014 VirtualFlips.com, and Christopherseder.com, All rights reserved. No part of this book may be reproduced, transmitted by any means, electronic, mechanical, photocopy, and recording or otherwise without written permission from the author. You cannot give this book away for free You cannot give it away as a bonus You do not have the rights to resell this book Any unauthorized reproduction of these materials in whole or part will result in legal action against you or your company.. Legal Disclaimer: All the information presented herein is based upon the author s research and experience. The author is not responsible for errors or omissions. Laws and legal practices vary from state to state, and from municipality to municipality. Furthermore, laws can, and often do change over time. The author does not vouch for the legality of his opinions, nor is there any intent to supply legal advice. The author strongly encourages the reader to consult with an attorney prior to entering any real estate transaction and contract and before taking any action on the material written or presented by the author. For more information on Virtual Wholesaling go to VirtualFlips.com
Introduction The Fact that you re here, right now- you ve made a life changing decision to learn how to escape the rate race and start living the life you have always dreamed of. This blue print/quick start guide is designed to open your eyes up to the world of Virtual real estate wholesaling and show you a road map for creating financial freedom and creating your own Four Hour real estate flipping business. If you are reading this now you have probably come to realize that relying on a BOSS is not the answer. Working 9 to 5 as a slave is not going to get you where you want to go in life. You were destined for more and put on this earth for a reason. Real estate investing has been proven to be the easiest and fastest way for the average American to achieve financial freedom. Check out what some of our countries greatest men have said. Ninety percent of all millionaires become so through owning real estate. - Andrew Carnegie The major fortunes in America have been made in land. - John D. Rockefeller The small landholders are the most precious part of a state. - Thomas Jefferson Right now you have a decision to make. You can either do nothing with this blue print or leave it to take up space on your computer. Or you can print it out, and start implementing the steps and start creating financial freedom. SO how are you going to make real estate investing work? With the help of this blue print, and with ACTION!, ACTION!, and more ACTION! This blue print will not work unless you decide to make it happen, get off your butt and decide today you are going to take control of your life. This Blue Print is meant to help you get familiar with our real estate investing system, and give you a few easy to follow steps which are designed to help you get started. Let s get started To your success, Christopher $eder
Step 1: Market Research In order to become a successful real estate investor you need to know your real estate market like the back of your hand. You will also want to know every market that you decide to invest in like the back of your hand. In order to be successful we have a 2 step market research process. The first step is to find 10 potential real estate markets you want to invest in and then analyze them and narrow it down to 1 to 2 to get you started. Once you have experience you can start adding in more and more real estate marketing to virtual flip in. Step 1: Pick 10 markets to analyze. I like to look at markets that have a population over 500k (preferably over 1million), have lots of inventory (potential motivated Sellers), and have an abundance of cash buyers or absentee buyers. For example if you look at Cleveland OH, it has a population over 500k, Listed on Realtor.com there are over 6,000 single family house listings, and then I search either Cash Sales or Absentee Owner sales (listsource.com). For cash sales from Freedomsoft there is over 800 transactions. Which is a good indicator that its potentially a good market. Lots of inventory and lots of buyers. Step 2: In depth Market research Once you pick a city the next goal is to find out which area of your city is the best place to wholesale houses. What we are looking for is an area where there is a high number of recent cash sales and also an area where there is high inventory. The reason we look for areas with high sales and high inventory is because these have been proven to be areas where we can easily find cheap houses and also because there are a lot of sales in these areas we can sell our houses FREAKY FAST for huge profit. We not only find the best cities to flip in but we also dive deep into those cities and find the best areas. In order to become a successful real estate investor you need to know how to do market research correctly. We have discovered a way where anyone can do 10 years of market research in less than 2 hours. We have also found out that 98% of real estate investors go about doing market research the wrong way.
What we focus on is finding the absolute best areas to start flipping houses in. I currently use a software called pin pointer pro to help me analyse real estate markets but you can easily do it with a simple excel spread sheet and a little bit of time. The way we do market research you will never have to worry about prices again because you will know everything about your market down the specific neighborhoods. If you would like to learn more about our market research please check out the full version of this course at VirtualFlips.com
Step 2: Compiling your Virtual Wholesaling Team Ok so now that you have picked a NEW killer real estate market filled with investor buyers and inventory its time to quickly put together a killer real estate team. In order to make your business run successfully you will need a few different components. First you will need a local reliable wholesaler to work with. Because you will be doing this virtually and not leaving the comfort of your nice new sofa, you will need reliable people on the ground in your own city or the virtual market you will be working. I personally like to work with and partner with an experienced wholesaler who is already doing 1 to 2 or more deals a month and have been in business for at least 2 years. The reason I like these people is because they already know the business, they have deals of their own, they have staying power and they have already established cash buyer relationships. Working with professionals makes your life a lot easier. They will also already have relationships with title company s, transactional lenders, realtors and who ever else you need. You can use their contracts and do not have to worry about anything. The HARD part is finding these types of people. I have found my very best relationships by networking with other successful wholesalers on facebook in a group called Wholesaling houses full time. I have been an active member of the group for a while now and really notice the people that are active in different markets and seem like good people. Another way to find active wholesalers is to search We Buy Houses (your area), in youtube and google and start finding all of the wholesalers in your area or the area you want to work in. Start calling these people up, joining their mailing lists and talk to them. Inside VirtualFlips.com we will cover this step more in depth.
Step 3: Marketing for Deals Marketing is the foundation of any great real estate investing business. Every big time real estate investor knows that you need to have consistent real estate leads coming in every month or your do not have a business and you will fail. In order to be successful you need to have leads coming in from predictable, scalable and consistent. They need to be predictable because you need to an easy want have leads coming in every month the same exact amount of leads coming in every single month. If you want to swim with the sharks you need to start marketing like the sharks. Or if you want to stay in the minnow point and luck upon a deal once every 6 months then keep doing what you are doing. Why does your marketing need to be scalable? Because you to have the ability to ramp up your marketing at some point in time when you are more successful and really turn your business into something great. In order to really become successful you need to be able to grow your business and grow your marketing. The last component of good marketing is being consistent. Successful real estate investing has their marketing down to a science. They know that every single Monday morning there marketing will be going out. Minnow and new investors fail big time in this aspect. They send out mailers one month and then don t send any out for 3 more months. In order to be successful you need to be consistent in your marketing and make sure it is getting done weekly. What do we do for marketing? For marketing we have started to use direct mail almost exclusively. We have found ways to save thousands of dollars each month with our direct mail. Over the past few years we have also tested hundreds of direct mail campaigns and have found proven marketing methods that consistently get us between at 10 and 15% response rate. The industry average is around 3%. As you can see we have almost perfected our marketing. Inside our VirtualFlips.com course were go into detail on how we do our marketing. We even hold your hand and show you every single thing we do in order to consistently have success with marketing.
Step 4: Pre- Screening and Evaluating Deals Once your marketing is working you will have motivated sellers calling you like crazy wanting to sell you a cheap house. What do you do when this happens? There are 2 ways you can go about doing this. One way is to have your wholesaler you are working with evaluate the deal and work it from the time the phone call comes in. (my favorite way) Or you can evaluate the deal yourself and follow up with the sellers your self. No matter what you still need to know how to evaluate deals on your own. The first step in evaluating deals is that you go through a lead sheet or a script with the sellers. You ask the sellers specific questions designed you help you build rapport with the sellers and also help you quickly determine if you have a deal or a dud (waste of your time). Once we go through our lead sheet we then run comparable sales. In our business we do not run comparable sales like the rest of the real estate investors out there. We use the data that we pulled from our market research phase. The actual CASH Sales. We then can easily enter in the address of the subject property and in 1 second find out everything we need to know about an area including CASH sales and recent sales. Believe me when I tell you the way we do market research will change your business for ever. How would you like to have MLS data even if you are not a realtor? Data that you can use to run your comparable sales and determine what a property is worth in less than 7 minutes. Once we determine exactly what a house is worth we can then use a proven formula to found out exactly what to offer on the property. All of this takes us about 7 minutes to do. Yes 7 minutes. We have created a proven process that you can use to evaluate deals in 7 minutes or you can easily show someone else how to evaluate deals in 7 minutes. Once you have determined exactly what to offer you will need to actually make an offer. In order to actually put a property under contract you need to make the seller an offer. You can either do this over the phone or you can fill out a simple purchase and sale contract and send it to them. For your initial offer I like to just call the seller up and tell them exactly what we can pay for the property. IF we agree on a price then we write up a contract (takes 2 minutes) and email it over to them.
Step 5: The Art of Selling your house When wholesaling a property we are looking to assign our contract (selling our right to purchase) to another buyer who is going to buy the property and pay use an assignment fee. Our typical assignment fees range anywhere from $1,000 to $20,000. If you need more information about assigning your contract I created a whole section just for you inside my VirtualFlips.com. We like to work with buyers who can pay all cash and can close fairly quickly. When a buyer pays cash it makes the real estate transaction run a lot smoother because we do not have to deal with the buyer getting a loan, then the bank requiring an appraisal, inspection and so on. CASH buyers will make your life easier and I highly recommend you only work with cash buyers. When virtual wholesaling you should be working with an experienced wholesaler who already knows the very biggest and best buyers in his/her area so finding buyers is a cake walk. Once you have a smoking hot real estate investing deal cash buyers will be hunting you down. I highly recommend you focus most of your time on finding awesome real estate deals. Finding cash buyers right now is the easy part. Sometimes when wholesaling you will need to use whats called transactional funding to close your deal. There are lots great transactional lenders out there and some bad ones. I use strategic freedom funding to do most of my transactional funding. For more info on transactional funding watch our videos on Virtualflips.com.
Step 6: Collecting your check Once you have assigned your contract (or double closed) to your cash buyer your job is pretty much done. You will just need to take the assignment of contract and the original contract (if you have not already) to a title company and have them start the title work and schedule a closing. If your doing it virtually you will just need to have your wholesaler handle this or if your the one signing the contract you will simple do everything over email. Once that is complete you just have to sit back and wait to collect your check. You should always stay in touch with both the buyer and seller to make sure nothing has changed and make sure the closing is on track. Make sure your wholesaler keeps you up dated and forwards you all of the necessary information along the way. This is also the section where you can do your happy dance (its optional). Step 7: Repeat the Process and Automate and Expand The last step in the process is to repeat it again. You will want to compile a new mailing campaign for the best area in your virtal market and send another one. Do this as many times as humanly possible and you will have financial freedom in no time. find a new area. Once you have a proven process working in one area its time to expand and From the market research you first did pick out the 2nd best market you analyzed and get started. Once you have 3 or 4 markets up and running then it might be time to hire an acquisitions manager to coordinate everything. Your acquisitions manager can pretty much do everything from marketing, calling back sellers, evaluating deals (7 minutes), making offers, setting appointments, and finding cash buyers, assigning your contact, managing the deals you have coming in and so on. If you have 1 to 2 deals closing each month in 3 real estate markets say your average profit is around $2,500 (your cut), that is easily $15,000 per month coming in. You could easily pay
your acquisitions manager $500 to $1,000 per deal closed or 30 to 50% of your profit and you do not have to lift a Finger. All you have to do is sit back and manager everything a few hours a week. Inside the VirtualFlips.com course you will learn how to put everything together so you can set up your own virtal wholesaling business that eventually runs on autopilot. Its not going to happen over night and it is going to take work but once you do have everything in place your life gets a lot easier. If you want to achieve true financial freedom you will need to stop working harder and start working smarter. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - That brings us to the end of this quick start guide. I hope that you enjoyed it; you should not have a basic understanding for our Virtual real estate wholesaling process. It s not rocket science and anyone can follow this simple process and create a wholesaling business that will run on auto pilot. Remember to check out our VirtualFlips.com Course, Inside this course we will walk you step by step through the process of market research, marketing like a ninja, how to evaluate deals in 7 minutes, the art of selling, #1 key to your success and much much more. Go NOW VirtualFlips.com