Totally New to wholesaling

Bird Dogs, Wholesaling
1

Hello,

I’m totally new to wholesaling and been to a couple of training seminars on wholesaling and flipping properties.
I have my bandit signs all made up and ready to put out this weekend.
My question is, after I put my signs up and a potential seller calls and wants to negotiate face to face on a price, I draw a blank on how I’m going to proceed with the next step? Do I just make an offer and go with it?
What are the steps from start to finish?

Thanks in advance,

Totally Lost

2

well when you get his address you have to run comparables on his property. so basically you cant just throw a offer out there without knowing what properties like his are going for in that area. once you know what properties are selling for then you have to consider repairs to the property plus your fee. so if properties compared to this one is selling for 60k and you go to the house and see it needs repairs of say 15k plus you want to make 5k your highest offer to the seller would be 40k but don’t start at 40k that’s your absolute last resort start at say 30k and if they don’t take to it start making your way up but 40k would be where you stop. :beer

3

Good afternoon, I am totally new to wholesaling as well, I am looking forward to learning and helping my peers in the wholesaling dept.@dm2010 we are actually in the same position, I do have my bandits signs ready to go just need to figure out next step.

4

90% of my method of operation is to find vacant boarded up junkers. Of course ther are many but hold the phone, only a small percentage will be possible deals. Some are owned by the bank, some you cant locate the sellers, some have more liens on them than their worth, sometimes the owners think they are sitting on a gold mine when it’s more like they are sitting on a pile of dodo.
It takes work and effort to sift thu all these junk properties. So you can see why it takes many of these to do just a few deals.
Once you have an owner that is tired of paying the yearly property taxes, getting notices from the city to clean up the yard racking up code violation fines and dealing with vagrants etc. You may have a potential deal cooking.
Then it’s time to negotiate a low offer, get it on contract and offer it to your buyers.

I have done a handful of nicer homes in better neighborhoods because the sellers were distressed, several were tired landlords, one was an inherited property and seller lived out of state. One seller lost her job and had health probs. A few sellers were older and going into retirement facilities.
I love the vacant junkers and continue to search for them, however the nicer homes are becoming a viable option also.
Let’s make some MONEY…
Rando

5

Hello I’m a new Investor and I’m looking to build my company’s power team! Investors, contractors, real estate agents. I’m located in Chesterfield Virginia. I am eager to build an empire! Let’s get busy! :deal

6

Hi, I m a new investor too. Have a sort of a power team, buyers lined up but cant find a good deal in San Francisco Bay Area. submitted 5 offers so far & none got accepted. :banghead

What is a pricing formula in BayArea? Does anyone know it? Is it 80% of ARV or 70% of ARV? I tried both & none seem to be working.

Can anyone help me here?

Thanks!

7

I don’t know if I’m going to be any help, other than a reality check…

You’re in a highly competitive market, where wholesaling deals is not a no-budget operation for the feint of heart.

You would do better moving away from this market and getting into less competitive, less populated surrounding areas.

That said, I have no idea how, or where, you found these five deals, but you’re likely not embedded deep enough into your network to actually capture a deal.

That is to say, you’re surface mining for deals. You’ve made offers on five deals that appeared to be ‘steals,’ listed on the MLS, and as soon as you put an offer in, the deal was already sold. These are probably pocket listings.

Well, pocket listings are usually already pre-sold before they ever reach the MLS. The MLS is just a formality.

In these cases, the agent has a pool of buyers. He’s passing these deals by these buyers, and giving them first bite at the apple. This gives the agent a chance to earn a full commission, and not have to split it.

So, the question comes, “How do I get a chance to make offers on pocket listings?”

There’s several answers, but let’s start by noting which agents seem to show up on the MLS with pocket listings. We need these agents to become aware of us and think of us when they come across another ‘steal deal’ where they can earn a full commission.

We do this by making friends with the agents. We become known as a proven, reliable, repeat buyer, that doesn’t waste people’s time.

We buy their kid’s Girl Scout Cookies by the case.

We offer to pay a bonus for finding deals, on top of their commission.

We do whatever we discover we have to, in order to remain the ‘favorite’ buyer of these agents, who spend a gob of their time and money networking, prospecting, driving, calling and otherwise finding steal deals.

Or… we do our own prospecting. This includes spending gobs of our own time and money networking, prospecting, driving, calling, mailing, advertising, and otherwise making sure that anyone with a deal, knows to call us.

Back at the ranch, it doesn’t appear that you’re digging anywhere deep enough for actual deals.

When you become the only one making an offer, then you know you’re deep enough. It’s very, very difficult to accomplish this, especially in areas with lots of competition, and where competitors are mailing out 100,000 direct mail pieces a month, to a variety of profiled leads, as my San Diego friend Todd does. He’s got a team of commissioned, phone-negotiators, that follow up on leads and negotiate deals seven days a week.

Or …you could mine a misunderstood niche like mine. I find sellers that are barely hanging on, with very little equity, and offer to take over their loans in return for their deeds.

I make money by selling that financing to buyers who need it. On a $300K house, which is probably a low-end condo where you’re investing, I can create an equity profit of $60,000, and put half that in the bank, in just a few days. That’s more money, faster, than any wholesaler you know makes. There’s virtually no competition. It’s still requires money to find these deals, but the money’s worth it.

FWIW

8

Thx for your detail reply.

9

Hi and Welcome,

I have been a member here for a while but have not really jumped in yet, I am now getting back to learning what I need in order to finally get something going. I am in NY on Long Island looking to connect with other out of state to invest. Will definite post when looking in different cities.

Michelle

10

Hey everyone!

I am Completely new to BirdDogging/Wholesaling. I am excited to be apart of this knowledgeable forum group!

11

Hello,

My name is Cameron and i live in Columbia, Md. I am a real estate matchmaker. I would be interested in knowing from the investors of the group, that if i have very lucrative residential deals for you in the state of maryland, would i be able to present them to you?