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!
@Joe Kooner When you negotiate a property, it is important to have more than one exit strategy. This property could work as a fix and rent, fix and flip, or wholesale.
@Joe Kooner The buyer made an offer and we accepted. In less than 3 weeks we will make five figures on this wholesale deal. We have invested less than 10 hours.
@Ryan Billingsley That is absolutely amazing! I work a FT time and do not have much time during the week (only after 5-6pm) so it's amazing to see how this can be done with some hard work after you're done with your W-2 job for the day!
I sincerely hope to attain this level of operations where I can have a wholesale deal at least once a month.
If it's not too forward, what is your total cost in this entire deal?
@Joe Kooner We had property under contract for 47k and will assign contract to end buyer for 57k. My partner and I both work a full time job as well. I will be going full time as a investor in May. Can not wait!
@Ryan Billingsley That's amazing! To add the discussions, when one works a FT job and also partakes in wholesaling deals, what is your best practice in getting these deals done when work comes in the way? I'm under the assumption that you will have to dip out of work during the day to meet the seller and buyer to complete the double closing at a title company?
@Joe Kooner Sometimes you have to take a long lunch, get up early or work late. The definition of a entrepreneur is living a few years of your life like most people wont, so that you can spend the rest of your life like most people cant. I actually switched jobs to accommodate my investing. I took a job working from home so I can have a flexible schedule to handle the marketing calls and leave when I need to.
@Ryan Billingsley I'm definitely aware of that entrepreneur lifestyle. I'm prepared to do that. I was curious how you achieved it as I work full-time at a psychical office location. As most title companies have the regular 9-5 hours of operation, it looks like lunch time would be my time to go out and complete the deal.
@Joe Kooner When I worked at a call center I worked 9-6. Sometimes I would say I had a doctors appointment in order to come in late to make a closing. Sometimes I took a extra long lunch. You have to be creative when you work a full time job.
@Danny Woodson Prevent the showings? Regardless if someone is a cash buyer they still have to agree to buy the property. You can still have many showings to all cash buyers. It really boils down to if they want to buy the property not how they are paying for it.
@Ryan Billingsley Do you use yellow letters, postcards etc. for your marketing? I want to send out something really creative that will catch sellers eyes when going through their mail. Something other then the normal letters and whatnot. What's worked for you? Thanks!
On the last wholesale deal, did you have to put any money down or did all the money transactions happen after you found an investor? I have been trying to get a better understanding of how wholesaling homes work. I would really like to do this, but scared I don't have all the information I need to be successful.
Wow congrats on finding a great deal. Our business model is first person that hands me a check or wire's the deposit gets the property but there are times we get multiple people at the same time that want to go see the home. We just do a group showing with everyone. Once the showing is complete we have each buyer give a silent highest and best offer and the highest price wins.
With wholesaling the process involves no money or actually buying a property. You negotiate the deal with the seller and get it under contract to buy. Then you market it to a investor at a higher price. You get paid an assignment fee when the end buyer closes with the seller.
The draw from wholesaling is that it doesn't take a whole lot to start up (except being persistent and knowledgeable) and you are eventually solving problems for both parties. (The seller gets to unload a property he does not want, and the buyer gets a good deal in where he can flip it, cf it, or hold for all potential gains, essentially obtaining themselves an asset).
@Tiffany Johnson The first thing I would recommend is to read books about real estate, listen to the podcast on bigger pockets, and continue to ask questions as you learn. Then you will reach a point where you will be comfortable to take that first step towards finding your first motivated seller. Before you start to look you will need to know how to analyze a deal (ARV, rehab cost, holding cost, rent), you will need to know the right questions to ask, and also you will need to know what type of property you want to target.
@Tiffany Johnson The first thing I would recommend is to read books about real estate, listen to the podcast on bigger pockets, and continue to ask questions as you learn. Then you will reach a point where you will be comfortable to take that first step towards finding your first motivated seller. Before you start to look you will need to know how to analyze a deal (ARV, rehab cost, holding cost, rent), you will need to know the right questions to ask, and also you will need to know what type of property you want to target.
Are they what Ryan said is okay Tiffany but at the end of the day if you want to good foundation there's a couple things you can do quickly
Many of the answers on wholesaling a piecemeal if you take a look at his books it will help you price a rehab and understand the big picture on wholesaling
Secondly your marketing shouldn't be just for wholesaling it should be for any problem with the property and don't be a one trick pony be able to talk to the seller and solve problems even if it's a pretty house with little equity
I would learn about subject to wrap around mortgages and lease option assignments
Your exit strategy would be Lease to own and helping a buyer buy the property