Hello BP family!!
I am having a little trouble finding help and/or resources in my area from people who does wholesaling. So I am trying to get started on my own. I have done my research on building my team but I have yet to make phone calls or do interviews. The only money I have really is for marketing. What I want to know is, after I find a seller, what is the next step? Do I find out how much the seller wants for the property? Do I get it appraised? I really need help. I have read books, watched videos, and listened to a couple of podcasts. Any pointers?!
Great post. The key to wholesaling property is buying the property for a lot less than it's worth. Believe it or not, most people thinking about getting into this business stop at this point so you are ahead of the curve already.
The best way to do this is to implement a direct mail campagin where you are sending offers to property owners that you have identified as good candidaties to sell.
I've been doing this since the '90s and here's some tips:
1) Find a market where the homes / land are relatively consistent (same age and or square footage). Doesn't have to be any where near where you live.
2) Get a list of properties owners there.
3) Remove all the properties that have any mortgage associated with them. Mortgages dictate the lowest price the seller is willing to accept. You want that price to be really really low; obscenely low.
4) Send them offers in the mail (post cards and colored letters don't work as well).
If you do this correctly, you will purchase about 1 property for every 100 letters you send.
Here's some friendly free advice: Do not ever buy a property that is "For Sale."
Someone has gotten there before you and beat you to it. Usually it's a real estate agent.
Wish you the best.
After you find your seller using @Steven Butala, you dont need an appraisal, but you do need a good ARV to go by. This is based on similiar houses that have sold in the same neighborhood within the last 30 days (if the area has been pretty stable, you can go back further). When 1st starting out, you should use a real estate agent to get those numbers. If you arent already connected with one, you can tell him/her that if they help u out with the ARVs, you will refer all sellers you cant help to him/her.
Check out BPs book on wholesaling. Its a start. Under "learn" go to "how-to-guides"
@Casey Wesley once you find a seller who wants to sell ask a local agent how much they think it is worth. If the asking price is lower than the estimated value then you might have a deal. You might want to try the south city investment club on meetup and go to one of their meetings to network and learn. If you have someone wanting to sell ,you can always see if I want to buy it also.
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