No money and no credit to buy home???
Charlotte, NC · Member since 2016 · 10 posts · 2 votes
The no money down is true in wholesaling. But i will say it is nice if you have a few extra hundred bucks saved up for getting leads from services like listsource or have some extra money for marketing. With that said you can still use no money and come out with money in wholesaling.
The simplified version of wholesaling is pretty much the following in order:
1.) Find a distressed property by driving for dollars.
2.) Look up the properties you found on your counties local Central Appraisal District, if the info shows the owners address is different from the home address then it's an absentee house. If the address are the same it doesn't mean you can't go on with the deal, the owner may actually still want to sell their house.
3.) Once you get all the potential leads then you can mail each of them. ( Usually postcard works best, make sure it uses key words like "we buy houses" "SELL FAST") have a phone number on their that people can reach you at.
4.) Receive calls from motivated sellers, talk to them on the phone. ASK LOTS OF QUESTIONS! build rapport with them as fast as possible. Set up a time when to see the property. (If you want to learn how to talk to motivated sellers just watch podcast 77 that is an amazing podcast.)
5.) Before you go to your property make sure you run comparable properties to get an idea of how much your property will sell for. Make sure the properties you compare to your property are almost the same EX: sq ft is around the same number, bedrooms and bathrooms are same, conditions on the property may be the same, etc.
6.) When inside the property make sure you bring a notebook or something to write down all the repairs you think the property will need. EVERYTHING! That will help you determine how much you can offer to the seller and how much money your flipper will need to put into the property to fix it. It will give you a range of how much money you are able to make.
7.) Once you make an offer get it under contract. Open up escrow and make sure theres nothing on the property that will hold you back from purchasing it.
8.) Find a buyer. Use FREE marketing on craigslist or make bandit signs and put it up around the neighborhood. NOT in front of the house. If its a good deal, Buyers will come.
9.) Once a buyer has been found, ask seller if they can leave keys in a lock box (if vacant) and ask if you can view the property or show the property to potential buyers when needed to, Set up a time for buyer to view the property.
10.) Tell buyer your sale price. Try to always offer 10K more than the deal you made with the seller. That way if the buyer tries to talk you down then you can negotiate.
11.) You and the buyer sign an assignment contract. Basically your selling him the contract made between you and the seller. The money you will make is your assignment fee. In this contract also make sure buyer will pay all closing costs, so your paying nothing out of pocket. I would also say make buyer pays 2,500 non-refundable earnest money.
12.) Go to the title company or escrow company or closing attorney office, whatever your state requires for you to close the deal and sign the last papers.
13.) BOOM get PAID! Now REPEAT!
Theres a lot of things that can happen during this whole process but you won't know how to deal with them if you don't go out and take action and start wholesaling. Mistakes you make will only make you more successful.
I would recommend all the BP podcast talking about wholesaling, they will help you out a TON!
hope this helps!
The no money down is true in wholesaling. But i will say it is nice if you have a few extra hundred bucks saved up for getting leads from services like listsource or have some extra money for marketing. With that said you can still use no money and come out with money in wholesaling.
The simplified version of wholesaling is pretty much the following in order:
1.) Find a distressed property by driving for dollars.
2.) Look up the properties you found on your counties local Central Appraisal District, if the info shows the owners address is different from the home address then it's an absentee house. If the address are the same it doesn't mean you can't go on with the deal, the owner may actually still want to sell their house.
3.) Once you get all the potential leads then you can mail each of them. ( Usually postcard works best, make sure it uses key words like "we buy houses" "SELL FAST") have a phone number on their that people can reach you at.
4.) Receive calls from motivated sellers, talk to them on the phone. ASK LOTS OF QUESTIONS! build rapport with them as fast as possible. Set up a time when to see the property. (If you want to learn how to talk to motivated sellers just watch podcast 77 that is an amazing podcast.)
5.) Before you go to your property make sure you run comparable properties to get an idea of how much your property will sell for. Make sure the properties you compare to your property are almost the same EX: sq ft is around the same number, bedrooms and bathrooms are same, conditions on the property may be the same, etc.
6.) When inside the property make sure you bring a notebook or something to write down all the repairs you think the property will need. EVERYTHING! That will help you determine how much you can offer to the seller and how much money your flipper will need to put into the property to fix it. It will give you a range of how much money you are able to make.
7.) Once you make an offer get it under contract. Open up escrow and make sure theres nothing on the property that will hold you back from purchasing it.
8.) Find a buyer. Use FREE marketing on craigslist or make bandit signs and put it up around the neighborhood. NOT in front of the house. If its a good deal, Buyers will come.
9.) Once a buyer has been found, ask seller if they can leave keys in a lock box (if vacant) and ask if you can view the property or show the property to potential buyers when needed to, Set up a time for buyer to view the property.
10.) Tell buyer your sale price. Try to always offer 10K more than the deal you made with the seller. That way if the buyer tries to talk you down then you can negotiate.
11.) You and the buyer sign an assignment contract. Basically your selling him the contract made between you and the seller. The money you will make is your assignment fee. In this contract also make sure buyer will pay all closing costs, so your paying nothing out of pocket. I would also say make buyer pays 2,500 non-refundable earnest money.
12.) Go to the title company or escrow company or closing attorney office, whatever your state requires for you to close the deal and sign the last papers.
13.) BOOM get PAID! Now REPEAT!
Theres a lot of things that can happen during this whole process but you won't know how to deal with them if you don't go out and take action and start wholesaling. Mistakes you make will only make you more successful.
I would recommend all the BP podcast talking about wholesaling, they will help you out a TON!
hope this helps!
It is very true and many people are doing it right in your backyard. Go to your local REI meeting for tons of info.
Seems unbelievable to you right now because you are new.
Those "no money down" deals ARE out there. However, you aren't going to find them without a paradigm shift, because probably your current frame of reference is property around where you live and have lived.
Distress creates the no-money-down deals. The trick is learning how to recognize it and how to capitalize on it PROPERLY.
People in those situations are vulnerable. If you are new and think you can learn the way to handle those people from reading a book and then just doing it, you run the risk of unintentionally hurting those people and making trouble for yourself as well. You need to know what you are doing.
Recognize these ebooks people crank out to sell you are really nothing more than a long, protracted sales letter. The goal of those books is to establish credibility with you so you buy coaching or mentoring from them. They aren't really written to teach you anything you can use "right out of the box".
If you have the money, sign up with a good on-site mentor. A good one will work with you in your market, help you "set up shop", and get you up and running with something that should put enough money to at least pay for your training in a matter of weeks. The one who trained me cost $15,000, and I recovered my investment in a little over 10 weeks.
If you can't do that, at least partner with someone experienced or at the very least, bird dog for someone like that. You will learn and earn.