First meeting tomorrow morning-- Kind of nervous

Wholesaling
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First meeting tomorrow morning-- Kind of nervous

Michael Aanerud
Paso Robles, CA · Member since 2013 · 13 posts · 0 votes

Hello BP Network,

I am so excited right now. My brother and I have been studying wholesaling for about 2 weeks now and just today, we got our first break. I have another full time job and when driving home today, I decided to take the long way home and write down some address so i can contact them via Yellow letter. As I was driving i see a " For sale by owner " sign. I called her and now I have a meeting set up for 8:15am tomorrow.

I sure hope I am prepared. I have a contract, although I am not confident that it is perfect. The property is comping out around $500,000 so I am nervous about picking apart the finer details of the house in order to get it for the best deal. The property is actually in really good shape although the house is 40 years out dated inside. It sounds like a brother and sister own it now and they have been having it as a rental for the past 2 years ( information courtesy of their neighbor).

Can anyone help me? Does anyone feel like jumping on the phone with me and giving me pointers? I got a case of premium California wine with your name on it if you do. Thank you in advance for any help that comes from this post. I am all ears and hope so bad this deal is successful.

Cheers,

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Gary Parker
Real Estate Professional · Salt Lake City, UT · Member since 2010 · 609 posts · 163 votes
13y

Ned Carey I really like that question!

Michael Aanerud Ask open ended questions, sit back and listed. One question like "why are you selling" can get some people to go on for half an hour. Be patient, listen and and discover what their pain is. I give this advice because it is exactly what I work on every meeting. It is hard to just listen and learn.

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    Relax It is a numbers game

    1) This is probably not a deal so there is no reason to be nervous
    2) Even if this is a great deal and you screw it up there is another deal around the corner.
    3) You will probably look at 50+ deals before you actually complete one. Worst case scenario, you are one deal closer to that 50

    Good luck - Ned

    2Reply
  • Oscar Perez
    Investor · Houston, TX · Member since 2012 · 24 posts · 8 votes
    13y

    Ned Carey I would have opted for the wine. Good advise though. I never understood the wholesaling thing. Seems like a lot of work.

    0Reply
  • Michael Aanerud
    OP
    Paso Robles, CA · Member since 2013 · 13 posts · 0 votes
    13y

    Thank you for the responses. I was kind of hoping for more tips though?? Anyone?

    0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    The most important thing you can do

    1)Be yourself, Don't pretend t be more experienced than you are. Learn from the experience.

    2) Plan ahead. Think about what question you will ask. Why are you selling, How much do you want, What will you do if the property doesn't sell. Etc.

    0Reply
  • Michael Aanerud
    OP
    Paso Robles, CA · Member since 2013 · 13 posts · 0 votes
    13y

    Thank you so much Ned. I really appreciate the help. Cheers, Let me know when you come to wine country. :-)

    0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    My favorite question is "Do you want anything for it or do you just want to get it out of your name?" But I don't think that is likely to help much on a $500,000 property.

    2Reply
  • Gary Parker
    Real Estate Professional · Salt Lake City, UT · Member since 2010 · 609 posts · 163 votes
    13y

    Ned Carey I really like that question!

    Michael Aanerud Ask open ended questions, sit back and listed. One question like "why are you selling" can get some people to go on for half an hour. Be patient, listen and and discover what their pain is. I give this advice because it is exactly what I work on every meeting. It is hard to just listen and learn.

    4Reply
  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    Go break some pots and don't think too much.

    Have fun with it and ask every question you are afraid to ask. When you ask it, make sure it is in a tone that expects an answer. Not rude or forceful but sort of like when you are speaking to a cop. You just answer without even thinking about it.

    2Reply
  • William MorganPro Member
    Fix & Flip or Hold · San Luis Obispo, CA · Member since 2012 · 136 posts · 63 votes
    13y

    I tried to PM but couldn't. Is the property near Margarita?

    0Reply
  • Carolina E.
    Investor · NW Indiana · Member since 2012 · 833 posts · 197 votes
    13y

    Michael Aanerud so how did your meeting go?

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y

    Some reading so you'll be better prepared in the future:

    http://www.biggerpockets.com/forums/87/topics/61286-scripts-for-calling-on-sellers

    0Reply
  • Patrick Jackson
    Bakersfield, CA · Member since 2013 · 184 posts · 19 votes
    13y

    Michael Aanerud I hope everything goes well for you.

    0Reply
  • Michael Aanerud
    OP
    Paso Robles, CA · Member since 2013 · 13 posts · 0 votes
    13y

    Hey everyone, thanks for the tips. Well the meeting went pretty well. After walking through the house with the owner and having good conversation, it basically turns out that they were not motivated sellers. I did homework all night pulling comps, getting prepared, practicing what I was going to say. After about a half hour of I finally told them my price, they would not give me theirs, and according to the seller " that number is not even in the same galaxy as what we were thinking".

    I felt I made a fair offer on what I feel I could sell it for but they did not want anything to do with my offer. So I said thank you for their time, told them to call me with any further questions, and I was on my way.

    All in all, i did not get the contract but it was a great first step and learning experience. Thank you to everyone for your help.

    0Reply
  • Carolina E.
    Investor · NW Indiana · Member since 2012 · 833 posts · 197 votes
    13y

    Michael Aanerud sounds like a good learning experience. Great job.

    0Reply
  • Mike Barron
    Real Estate Investor · OH · Member since 2013 · 12 posts · 6 votes
    13y

    Just my .02 ... Never EVER go to see a property until you know they are ABSOLUTELY motivated sellers. this will save you so much time and money. We usually work out 99% of the details over the phone before we even step foot on a property. HAVE A SCRIPT so you ask the same questions about every property. It sucks hanging up and then remembering you forgot to ask an important question.

    Do your DUE DILIGENCE! We pull records from the recorders/assessors websites about mortgages, liens, tax info and what type of deed the current owner has for the property.

    When we get to the property, I point out as many issues (tactfully of course) as I can and ask them for the best price they can give me considering the condition of the property. If they absolutely will not give me a price, I low-ball it and see what they say.

    Again, just my .02

    1Reply
  • Denzel Hamilton
    Wholesaler · Philadelphia, PA · Member since 2013 · 15 posts · 2 votes
    13y

    Mike Barron can u possibly email me a copy of your script? Thats what holding me back. I dont know what to say to the seller.

    0Reply
  • Cristina Corredor
    Anchorage, AK · Member since 2013 · 55 posts · 9 votes
    13y

    Jason, create a system for everything that you do. Collect all the information possible on the phone and put it on a "seller lead sheet". There you will have property information, mortgage info, taxes, condition, repairs needed... all that will help you run some numbers to know if that´s a deal or not. Your most allowable offer MOA is AFTER REPAIR VALUE X 70% - REPAIRS. To know your ARV look some comps from the MLS (sold, active and pending) within the last 3- 4 months. If you don´t have access to MLS you need it!!!

    0Reply
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