What are the next steps after establishing contact to Homeowner?
New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 2 votes
What are the next steps after establishing contact to Homeowner?
Most Popular Reply
Jeff CopelandBusiness Member
Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votesYou obviously want to meet with them, establish rapport, see the property, etc.
But ultimately, the things that really matter are:
1. How much is it worth, minus how much do they owe? (How much equity do they have?)
2. How much will they sell it for (How much of that equity is leftover for you?)
Copeland Morgan LLC4.770 Reviews
9 Replies
- 3yJeff CopelandBusiness MemberReal Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
You obviously want to meet with them, establish rapport, see the property, etc.
But ultimately, the things that really matter are:
1. How much is it worth, minus how much do they owe? (How much equity do they have?)
2. How much will they sell it for (How much of that equity is leftover for you?)
Copeland Morgan LLC4.770 Reviews - Title Representative · Irvine, CA · Member since 2017 · 874 posts · 519 votes3y
@Michael Brown yes, just keep it simple. Ask the condition of the home, try to figure out what their motivation for selling is, ask them how much they think it's worth, and if what they want (or what your gut tells you is their real number is) is within striking distance of a number that makes sense for you to wholesale it/successfully find a buyer to dispo to, then ask to go out and take pictures of the home, or pay a local person to do it. Obviously, there is more to it than that, but having a wholesaling business is just as complicated as opening a restaurant or any other type of business, where no one could tell you everything you need in one post. This is a tough business, depsite what all these kids think just because they saw a Youtube video, so you might want to partner up with someone experienced. I hope the above helps!
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
Meet them in person and put them under contract. Too many people out there hungry for deals for you to wait
- 3yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesGee, And they say too many wholesalers are inexperienced, lack knowledge, and present a danger to unsophisticated and desperate homeowners.
Quote from @Michael Brown:
HI All,
I have been using deal machine to send postcards to distressed properties.
A homeowner contacted me expressing interest in selling her home to me.
I'm not really sure on what the next steps are? I'm assuming talk to them about the property, and schedule a visit to the property to evaluate it , and make an offer?
Can anyone else with more experience break down what the next steps are? Is there a playbook/script I can follow?
P.S I tried googling this, but it seems most of the content around wholesaling is focused on marketing/driving for dollars, etc but not how to close the deal.
Thanks
- New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 2 votes3y
Quote from @Don Konipol:
Gee, And they say too many wholesalers are inexperienced, lack knowledge, and present a danger to unsophisticated and desperate homeowners.Quote from @Michael Brown:
HI All,
I have been using deal machine to send postcards to distressed properties.
A homeowner contacted me expressing interest in selling her home to me.
I'm not really sure on what the next steps are? I'm assuming talk to them about the property, and schedule a visit to the property to evaluate it , and make an offer?
Can anyone else with more experience break down what the next steps are? Is there a playbook/script I can follow?
P.S I tried googling this, but it seems most of the content around wholesaling is focused on marketing/driving for dollars, etc but not how to close the deal.
Thanks
I guess everyone has a start somewhere.
I want to apologize to the world, bigger pockets and humanity for not being a perfect all knowing human being.
I shouldn't have asked for the expertise and advise from more experienced people. Instead I will walk away from the deal and real estate so that I do not corrupt the quality and integrity of wholesalers.
I hope everyone here can accept my apology.
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes3y
Quote from @Michael Brown:
HI All,
I have been using deal machine to send postcards to distressed properties.
A homeowner contacted me expressing interest in selling her home to me.
I'm not really sure on what the next steps are? I'm assuming talk to them about the property, and schedule a visit to the property to evaluate it , and make an offer?
Can anyone else with more experience break down what the next steps are? Is there a playbook/script I can follow?
P.S I tried googling this, but it seems most of the content around wholesaling is focused on marketing/driving for dollars, etc but not how to close the deal.
Thanks
This is what you do.
You need to establish motivation. A lot of investors experts and noobs think that the second someone appreaches them to sell, they get so excited... don't.
You need to establish first if it is a waste of your time, or worth persuing. So you establish motivation.
You talk to them, and you listen. let them talk. Some will tell you to engage in strategic organic conversation and strategically (manipulatively) indirectly ask questions so they can give you the info you need.
I'd saym, don;t even bother.
ASK them directly:
Why are you selling?
Why not list it with an agent?
From their answers evaluarte what the motivation is.
Then you ask:
Tell me abou the house, what condition is it in?
They will give you THEIR version of the condition. Note it down. MIND THIS:
You are not asking this to find out what the condition is in. You are asking this to establish what THEY think the condition is in.
So after they give you their opinion, you ask them:
OK Great...
How old is the roof
When were the kitchen and bathrooms last updated
How old are the mechanicals.
You force them to answer these questions where the answers are not "relative " ansers right?
A relative answer is.. The cabinets are in good shape. (That is a matter of opinion/perspective").. but "The cabinets are 17 years old".. that is DATA. Fact. That is standard universal. You are not going to convince me that 17 year old cabinets are in great shape. So now not only do they hear themselves say it out loud, they are WITNESS to them telling ME this. It makes a difference trust me.
So what do this?
This has nothing to do with establishing motivation (that was the first part). What you are doing in part 2 is leveling the battlefield. The battlefield is how much you offer vs. how much they are willing to accept.
Once you do this phase 2, you leveled the battle field. NO ONE can come to you and demand more for their house when your offer is fair, legitimate and realistic... becuase they KNOW damn well, that their kitceh is not in that perfect shape they thought it was just before they themselves made themself realize that dang.. my kitchen really is a old piece of crap.
Once you go through that stage.. you schedule a walkthrough where you confirm everything and make them on offer.
And that is all there is to it.
Yes yes, I am awesome.. I know I know..
But go ahead and tell me again anyways.. some people don't know it yet (I know how dare they)
Welcome!
- 3yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesThe problem is that you can screw up someone’s life by not knowing what you’re doing
Quote from @Michael Brown:
Quote from @Don Konipol:
Gee, And they say too many wholesalers are inexperienced, lack knowledge, and present a danger to unsophisticated and desperate homeowners.Quote from @Michael Brown:
HI All,
I have been using deal machine to send postcards to distressed properties.
A homeowner contacted me expressing interest in selling her home to me.
I'm not really sure on what the next steps are? I'm assuming talk to them about the property, and schedule a visit to the property to evaluate it , and make an offer?
Can anyone else with more experience break down what the next steps are? Is there a playbook/script I can follow?
P.S I tried googling this, but it seems most of the content around wholesaling is focused on marketing/driving for dollars, etc but not how to close the deal.
Thanks
I guess everyone has a start somewhere.
I want to apologize to the world, bigger pockets and humanity for not being a perfect all knowing human being.
I shouldn't have asked for the expertise and advise from more experienced people. Instead I will walk away from the deal and real estate so that I do not corrupt the quality and integrity of wholesalers.
I hope everyone here can accept my apology.
inexperienced wholesalers get desperate home sellers behind on their payments to believe that when they sign a contract with a wholesaler they’ve sold their home and no longer have to worry about being behind in their payments. They believe that the wholesaler is going to buy their home as long as the inspection comes back without major problems; they don’t know that the deal will close ONLY if the wholesaler is able to flip the contract to an end buyer. When this doesn’t happen the seller has lost valuable time in finding a REAL buyer and now is further behind on his payments. This often results in homes lost to foreclosure, credit ruined, bankruptcy.
Hey, it’s not your fault. Gurus advertising on YouTube, internet, and everywhere make it seem so easy. But there’s a reason many states are trying to make wholesaling without a real estate license illegal.
After 40 + years in the real estate field, I will give you a few pointers/observations
1. If you want to be successful in real estate, you’ll need to have a lot thicker skin than what you’re exhibiting in your last post
2. You need to do A LOT more self education through reading and research. Asking questions on a forum is good as added method, not as a primary method of education
3. While wholesaling seems like a good way to enter real estate and accumulate capital, it’s not. Few people make money wholesaling unless they’ve invested a lot of money in marketing and systems, and most money made in wholesaling is by the “gurus” selling hope to newbies.
I wish you luck in whatever you do; however good wishes and good feelings isn’t what leads to success. Hard work, dedication, knowledge, and entrepreneur spirit does. - New to Real Estate · Chicago, IL · Member since 2019 · 7 posts · 2 votes3y
Quote from @Jerryll Noorden:
Quote from @Michael Brown:
HI All,
I have been using deal machine to send postcards to distressed properties.
A homeowner contacted me expressing interest in selling her home to me.
I'm not really sure on what the next steps are? I'm assuming talk to them about the property, and schedule a visit to the property to evaluate it , and make an offer?
Can anyone else with more experience break down what the next steps are? Is there a playbook/script I can follow?
P.S I tried googling this, but it seems most of the content around wholesaling is focused on marketing/driving for dollars, etc but not how to close the deal.
Thanks
This is what you do.
You need to establish motivation. A lot of investors experts and noobs think that the second someone appreaches them to sell, they get so excited... don't.
You need to establish first if it is a waste of your time, or worth persuing. So you establish motivation.
You talk to them, and you listen. let them talk. Some will tell you to engage in strategic organic conversation and strategically (manipulatively) indirectly ask questions so they can give you the info you need.
I'd saym, don;t even bother.
ASK them directly:
Why are you selling?
Why not list it with an agent?
From their answers evaluarte what the motivation is.
Then you ask:
Tell me abou the house, what condition is it in?
They will give you THEIR version of the condition. Note it down. MIND THIS:
You are not asking this to find out what the condition is in. You are asking this to establish what THEY think the condition is in.
So after they give you their opinion, you ask them:
OK Great...
How old is the roof
When were the kitchen and bathrooms last updated
How old are the mechanicals.
You force them to answer these questions where the answers are not "relative " ansers right?
A relative answer is.. The cabinets are in good shape. (That is a matter of opinion/perspective").. but "The cabinets are 17 years old".. that is DATA. Fact. That is standard universal. You are not going to convince me that 17 year old cabinets are in great shape. So now not only do they hear themselves say it out loud, they are WITNESS to them telling ME this. It makes a difference trust me.
So what do this?
This has nothing to do with establishing motivation (that was the first part). What you are doing in part 2 is leveling the battlefield. The battlefield is how much you offer vs. how much they are willing to accept.
Once you do this phase 2, you leveled the battle field. NO ONE can come to you and demand more for their house when your offer is fair, legitimate and realistic... becuase they KNOW damn well, that their kitceh is not in that perfect shape they thought it was just before they themselves made themself realize that dang.. my kitchen really is a old piece of crap.
Once you go through that stage.. you schedule a walkthrough where you confirm everything and make them on offer.
And that is all there is to it.
Yes yes, I am awesome.. I know I know..
But go ahead and tell me again anyways.. some people don't know it yet (I know how dare they)
Welcome!
Thanks for the advice! This is what I was looking for in this thread. And thanks to everyone else who offered useful advise here as well.
- 3yJohn WilliamsBusiness MemberProperty Manager · Clarksville, TN · Member since 2018 · 443 posts · 210 votes
This would be a great point in your journey to hire a mentor! Your mentor will guide you to success and coach you through the process. Fast track your learning process and ensure you get it done!
Rent My Home - Property Management4.8212 Reviews
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