New REI needs help understanding wholesale

I am new to the REI world and have read read read to death for four months now, attended seminars but am still a bit confused about wholesales. I know the basics, but what do you say when you approach a seller??? can anyone give me some insight or steps to follow? I am ready to take action with deals! :biggrin

I usually have motivated sellers contact me. I do this with postcard mailings which lead to a 24 hour recorded message or ads on Craigslist, etc. If they already read an ad or a postcard and got additional info from a recorded phone number or website and then they still called you, they’re motivated. At this point, all you are doing is simply returning their call.

If you already have the property address, try searching comps or the tax assessor’s database to determine an ARV. Ron LeGrand (his home study course is available on this site) has a very simple question to prescreen sellers. It goes like this, “If I were to make an all cash offer and close quickly, what would be the least amount you would accept?” Whatever they say, you can reply, “Is that the best you can do?” This usually will drop their figure. You can say something similar, but you are trying to determine the least they would accept. You get the seller to name their price first. He who speaks first loses. If their price is too close or higher than the ARV, you can tell them they should probably use a Realtor and their house will probably be on the market for about a year.

I hope this helps. Good luck!

thanks for the info!! :biggrin