Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
We have a property under contract that we are going to wholesale. We have 6-7 people interested in the deal already in two days. We are going to meet 3 possibly 4 people at the property tonight to show it. How many people is to many for a showing?? We normally have one buyer at a time come through a property in the past.
Is having 3-7 people come see it at the same time a bad idea??
@Chad Clanton@Chaz Reid@Mark Brogan Just got home. 3 people showed up and they all plan to submit a offer. All three looked very interested. The 3rd buyer came with an agent and tried to point out anything he could to build value in getting a lower cost then he hit us with.. "Whats the lowest you will take" line. We told him to submit a offer like the others via email and we will choose the highest bid!
I've heard that line in everything but real estate (still looking for my first deal) and my response is "What's the most you're willing to pay?" Most people don't have an answer, and those that ask the question have no idea how to negotiate. You answered PERFECTLY!
On a side note today the seller of this property we are marketing told someone else that we buy houses and they contacted us wanting us to buy their house!!!! It was a rental and the tenant has moved out! The word spreads fast! Exciting stuff! The more you help people with their problems, the more people are willing to help you with your problems!!!
It is awesome you are doing well Ryan! I am a newbie to this wholesaling gig and looking to start my DM campaign. Do you have any tips? We are just getting started and on a fixed budget. How many mailings did you send out per month and for how many months before you started getting responses and eventually your first deal?
@Andrew Lockhart Getting started is the most important part. You will learn quick! We started with $1000 and spread it out over 2 months. We would send out a batch and then take a week off to regroup and follow up. You will get calls immediately! We send out our letters on saturday and we would receive calls monday afternoon. The first week we had 15 calls. That is about the average response when sending out 333 letters. Sometimes more sometimes less. We hit each lead 6 times over 6 months. Now we send out 1500 a month. 500 per week then 1 week off. In our first mailing spread out over 2 months we wholesaled 1 deal and made $10500. It took us 6 weeks to lock up and complete our first deal. Best advice is to take action and ask questions as you go. I would post your progress on here and ask for advice. This site is like having a mentor at your beckon call.
Ryan-thank you. It is so great to learn from others that are making it happen-I really appreciate it. I am just curious, do you just give out your personal cell number or do you have a separate number set up? I was planning out focusing my DM campaign on absentee owners with high equity and using List Source to generate the mailing list. What do you think of that and have you used them? I like you advice of just taking action-I plan on doing just that. Thanks.
@Andrew Lockhart I just realized that you responded, sorry it took so long.
We use a google voice phone number. You can create one with your google email and download the app to your phone. You can adjust the settings so it will ring right to your phone when someone calls. We use list source as well. We target absentee and high equity as well. You can get very specific to what type of property you want to target which is great. That way when someone calls, you know that is a house you want to buy. It all just depends if they are motivated.
UPDATE: We have a couple offers and a couple more people wanting to see it. Getting closer to finding a buyer!! To be continued....
Congratulations on closing this past Friday! If I'm not being too nosey, could you share the numbers on that deal? I'm a newbie and am always interested in seeing what kind of numbers/deals attract the most attention from cash buyers.
IMO, this was definitely an example of a high interest wholesale. I was excited just reading through your updates lol.
@Nikki Robinson We are currently in a strong sellers market. Off market deals are very popular right now among investors and they don't want to miss out on making money. So if you have a deal under contract that is off market, and you have it priced right, it is going to attract a ton of interest! This property was in a very HOT location so it went fast.
We acquired this property through our direct mail campaign. The seller bought this property to attempt a flip. They fell in love with the HGTV shows about flipping and wanted to jump in and try it so her son and her bought the home, got about half way through with the rehab and ran out of interest and money. We thought it would be a good chance to attempt our first flip since half of the work was already done. But after analyzing it, the property still needed work that we did not want to tackle. We still made an offer and negotiated for weeks before we came to terms. We knew this was a popular area so we decided to wholesale it to another investor who focuses on rehabbing. We agreed to purchase the house for 77500 and assigned the contract to another buyer for 81000. So we made 3500. This was the first time we assigned the contract. The previous 3 wholesale deals have all been 10k+ profits and with those we did a double close.
@Ryan Billingsley Congrats on you closing on Friday. Also thank you for sharing that great information. I've been bird dogging & looking to take it up a level to wholesaling. Continued Success to you!!!
I'm fortunate to live in an area where off-market deals are plenty for the person who puts in the footwork to find them. However I keep second-guessing myself and running the numbers 10-15xs, with different scenarios, before I make a move on getting the property UC. Constantly worrying if I'll be able to find a buyer.
But from what you told me, I'm feeling a bit more confident because I do take extra care to make sure the cash buyer has a truly good deal in the end.
At this point, a $3500 assignment fee would make me just as happy as a $10k+. I'm eager to have the first complete deal under my belt. Thanks again for your insight.
@Nikki Robinson It is easy to get stuck over analyzing the situation. Analysis Paralysis as they call it! But the truth is you have to take action and make your offer! You could end up loosing the deal to the next investor. Once you get it under contract feel free to ask questions on here to help guide you through the process. That is basically what we did. The more times you take action and negotiate a property under contract, the easier it gets!
We have another property under contract. We received the contract yesterday and already have a buyer coming to look at it today! We currently have 3 under contract! April contracts bring May checks!!!!
@Joe Kooner We took the same route to build capital. That is the magic involved in real estate investing. You only need minimal money to market to acquire a deal. We plan to continue wholesaling to build capital. Some people say it is the most complex strategy in real estate investing but from my experience it is the easiest. Compared to other strategies like flipping or holding, wholesaling requires the least amount of time. We have yet to find a property that provided us with a higher return if you break it down by dollars per hour.
I would be more than happy to help in any way possible! Cheers to success in getting started!
@Ryan Billingsley thank you, Ryan. (Typo on my part, I meant in 2016, not 2015 as I'm busy obtaining my CPA).
I'm really excited to see this strategy pay dividends. I will definitely reach out to you about wholesaling when the time comes and when I'm more educated on the process. Cheers!
Please do keep us updated from the start-end of this wholesale deal. It would be great to gain some insight from this deal and potential new wholesale deals of yours in the future.
This property we are working now we acquired through our direct mail campaign. The seller called last Monday and we walked through the house that night and made an offer. We then followed up with the seller on Thursday and negotiated a slightly higher price. The seller verbally accepted. We then emailed the contract and received it back Monday morning. We showed it yesterday to another investor as a wholesale for him to flip. I will keep you posted with what happens next..
This deal is a great potential flip because there is really nothing weird that needs to be done. It is mostly cosmetic and clean up. We are tempted to make it our first flip. If we do not get what we want as a wholesale then we will surely buy it and start our first flip.