A few things to know about me:
-I have 0% real-world experience when it comes to anything in the real estate industry (including not yet being a homeowner).
-I have been self-educating myself for the past year or so in the general real estate subject, and I've been specifically interested in (one day) owning some cash-flowing rental properties. BP has been a great resource for me when it comes to helpful material on this topic, which is why I'm reaching out to you now.
-I work a traditional 40hr/week job
-I am excited to gain any/all experience in real estate. It fascinates me and I see the value in it and the lifestyle it could potentially offer my family and me.
I recently got the opportunity to join a wholesalers team and knock on pre-foreclosures on the wholesalers behalf for a cut of the spread. I really like the simplicity of the business model, especially how "cut and dry" a deal can be in regards to whether the numbers show a potentially profitable acquisition or not. My question for you all is, do you have any real advice on how I can be the most successful at this? Here are some questions:
When is the best time of day to make contact?
When is the best time in the foreclosure process to make contact?
What should I have with me?
What should I wear?
What should I say?
Should I file for an LLC or some other legal business entity to reduce taxes on any income generated from this venture?
What has been your experience doing this?
I know one of the most valuable things will be for me to actually get out there and DO IT and learn from that, which I have been doing, I just wanted to see if there was any other value or knowledge I could gain from anybody out there. Thanks so much in advance!
@Gordon F. unless you have a really high split on what you earn the wholesaler is using you. You could probably make the most out of this by getting your RE license and offering several options all of which would make money when you make contact. I met a guy who would only give 25% of the wholesale fee to the door knocker which is insane. I also have dealt with a high volume agent who would give 80%.
@Gordon F. Keep in mind that the people you are contacting are financially distressed and probably not willing to admit it. You should approach them as someone wanting to help them. (If you have this mindset, then you may come up with solutions that work for both of you. This will come from experience.) People in foreclosure are generally wanting to avoid talking to anyone that appears to be a bill collector, so dress casually. If they answer the door, tell them that you are looking to buy a house in the neighborhood and ask them if they know anyone that is wanting to sell. If they talk with you, then work on getting to know them and building rapport. I don't recommend approaching them with the info that you know they are in foreclosure. Your wholesaler is using you as @Aaron K. said. However, it doesn't hurt to work with the guy for a short period of time to see if you like it. Then, go out on your own. You can setup an LLC once you've determined that this is a business that you want to be in.