New Ways to Close Deals

Hello everybody, 

I just wanted to share with you some new strategies and ways to close deals. Ever since becoming active on BiggerPockets, I have connected with some real good people and formed great business relationships. 

One person I would like to mention that has helped me close more deals is @Omar Merced. Omar and I connected about a month a go and have taken Las Vegas by storm. But we are doing things a little different than most and I hope everybody adapts.  Most wholesalers in the industry are looking to cash the seller out. This means that if the seller has a price in mind, we will look for a buyer that will pay that plus more so that we can get paid as wholesalers. The traditional wholesale deal is getting more and more difficult to find, especially when it's the selling time of the season. So how did Omar and I close 3 deals in week? 

The simple strategy we use is to partner with the seller. That's right! Nobody ever talks about doing a JV with the seller. We always talk about getting them cash, get them out of the way and get the rehab started. So how did this all come about? 

I was contacted by @Ulises Rodriguez who had been doing some direct mail marketing and a seller called him. We spoke to the seller and found out that he wants $160k for a property valued at about $190k at best. Below is a picture of the property.  

Now this property wasn't in the greatest of conditions. It needs about $22k worth of rehab. So simple wholesale calculations for a cash deal would put us at about $120k to "get the seller out the way" assign the property to Omar then have him do the rehab. But remember, the seller is looking for $160k. Most people don't drop down $40k in a hot market. So we got creative. 

We asked the seller if he would allow Omar to come in, rehab the property then list it so that we can get more money out of it. Seller took the deal without even hesitating. He didn't want to put any money into it but would gladly work with someone who would. 

Now this is the part that might make wholesalers a little queezy. Ulises and I aren't going to be paid out of this deal until after it has been rehabbed and sold. Why would we do that? I found out that if you are in the business of helping people and not making money, everything tends to work out. So instead of making a small profit on the deal RIGHT AWAY, Ulises and I agreed to wait until it closes and walk away with a larger payday. In the end, this project will be done by the start of August and should sell in no time. 

I offer options like this to all of my sellers and you should as well. Stop leaving money on the table and close more deals. If anybody ever needs help, please reach out to me. 

Happy investing to you all, 

Louis Davis