All Forum Posts by: Dev Horn

Click on my face up to the left and watch the video in my profile here on BP.  In it I explain why wholesaling alone is not a viable business right now.

Does that make REI a non-starter if you don't have a big pile of cash? Not really, you can still START there, as so many have. Just be aware of the limitations of that strategy, and that there are many ways to make money off real estate - other types of deals, etc. The more you learn about real estate and different types of transactions/deal structures, you'll be able to convert more leads into deals and make a lot more money.

I also recommend that you consider getting a RE license.  When you start generating leads, you'll find more listing opportunities than you will wholesale deals...

Hi Mark - I have a 3-video "Wholesale Accelerator" course (with sample Purchase and Assignment agreements) that I give to free only to my colleagues here in BP. Send me a colleague request (w/ your email address) and I'll send you that material. (Pure training, no sales or advertising) In 2 hours you'll know a LOT more about wholesaling than you do right now.

I bet someone on the Listsource sales team can combine those smaller lists into a single order.  Save each list in your account and then call them and tell them what you want (to buy them as one list, over the min cost).

http://www.listsource.com/list/ui/ContactEmail.htm

(FYI - I receive no benefit by referring people to Listsource.com sales)

I am not a licensed agent, but I work with an agent partner and have many associates who are licensed salespeople and brokers.  The idea of trying to screw someone out of a commission just does not sit well with me.  If you found a listed property on the Internet, it was because of the broker's marketing efforts.  As Bill stated above: "if you found the property by the agent's efforts, listing or advertising, the agent is due the commission".  We're all real estate professionals and we should treat each other the way we want to be treated.  Integrity is everything if you are trying to make this your business/career.

“You’re never wrong to do the right thing.” ~ Mark Twain

Wow, from what @Ram Srinivasan says, you would not be able to get the data for an "absentee owner" list, and that's the #1 group we hit with direct mail here in the states.  That's interesting, I was not aware of those information laws in Canada.

We also use Infusionsoft, which is very capable, but I think it's too expensive and too technical for the average small business person (like $300 a month).

We're actually building a solution that will include all the features you mentioned, but it's not out yet, so I'll tell you how I would do it with other companies' solutions.

Use Investor Carrot for the landing page component and use Podio for the CRM piece.  Now, there is a custom implementation of Podio specifically for RE investors - they call it Real Automation - www.realautomation.com (I have no affilation with this company)

I know several guys using that implementation of Podio and they say it's worth the $ you pay for the customization.  And if you're a little techy, you can make Podio do all kinds of cool stuff.

Looks like you've gotten some great advice here.

I'd add that the source of the lead is an important factor.  Any lead generated thru the broker's advertising is his/her opportunity that they are in essence sharing with their licensed salespeople. 

For your investment deals, you will need to have a discreet advertising method that is in no way associated with your brokerage, so there will be no confusion about who produced the opportunity.

Then, yeah, disclose that you are licensed but you're acting as an individual buyer, and you are not offering to represent them.

Our licensed investors also include a disclosure clause* in the Purchase Agreement, and many provide a "HUD-like" break down of what is being offered, what they expect to invest in the property, what they expect to sell it for, and their expected profit.

Here's the good news to tell your broker: As you generate leads for your investing activities, most of those leads will not turn into purchases (maybe 1 in 15 or 20 will).  If you generate 20 leads, probably 5 to 8 of those leads will actually be LISTING opportunities that you can bring back to the brokerage.  That's free money for your broker, and I guarantee you can list more than you can buy.  This type of marketing is GREAT for agents because most people who contact us are not currently represented - and we KNOW they are interested in selling.  That is found money for you and your broker. 

*FYI - This is a clause we've used in the Purchase Agreement with the seller:

DISCLOSURE: The Buyer may be a licensed real estate broker or salesperson (agent). This agreement is not an offer of real estate brokerage services, such as an offer to represent the Seller or list the subject property for sale on the Multiple Listing Service (MLS). The Buyer is not representing or represented by any broker in regard to this transaction.

This is a solid, straight-forward answer to the question.  People appreciate when you shoot straight with them and have their best interests (as well as yours) in mind.

Hey @Carlos Querido - I think you're smart to ask about CT so you become aware of any rules or regulations you must adhere to, but the wholesaling process is pretty much the same everywhere.

FYI - I have a 3-video "Wholesale Accelerator" course (with sample Purchase and Assignment agreements) that I give to free only to my colleagues here in BP.  Send me a colleague request (w/ your email address) and I'll send you that material. (Pure training, no sales or advertising)  In 2 hours you'll know a LOT more about wholesaling than you do right now.

Thanks for the call-out, @Brandon Turner - good question.  I may approach this a bit differently than the typical investor...

I personally have a real estate agent partner, so I step back and look at it as "I have someone on the phone that WANTS TO SELL THEIR HOUSE."  That's valuable information, first for my consideration as an investor, but also for my partner Angela.  So, when I get a call, I'm trying to figure out - "How can I help this person with their real estate needs?".  A quick cash offer may be their best solution, but if not, it seems a waste to just say "Sorry we don't buy houses from people in your situation." and then let that lead vaporize.

So, when I am on that first call and it becomes obvious that this is NOT a cash offer opportunity, I just say something like this:

"Now that I better understand your financial situation in regard to the house, I don't think my quick cash offer is going to be a good solution for you.  We're investors and we must purchase properties at a discount, and you are not in a position to sell yours to me at a discount. (then I move to solution #2)  Based upon your situation, your best option may be to list your house on the retail market.  I have a wonderful agent partner - Angela - would you like me to have her call you to discuss listing the house?"

What was my strategy here? Be honest about the fact that the seller is not a good fit for our program; then offer to connect them to another real estate pro who may be able to assist them. No, she cannot pay me for that. it doesn't matter, she helps me with CMAs and watches the MLS like a hawk for me.

If listing is not the best alternative, I might suggest selling the house via lease option, owner financing, etc. - whatever makes the most sense for the seller on the phone.

I think every contact with us is an opportunity.  I approach it more as a real estate consultant than an investor and I want people to leave their interaction with me feeling that I guided them in the right direction, whether that is my cash offer or not.  It just takes a few extra minutes for me to email the seller's contact to my agent or other person that might help the them.  It leaves the seller with a good memory of dealing with me and my company, and it's just good karma.  =)