All Forum Posts by: Joe Gonzalez

Whats going on Xavior,

A large part of the equity lost is in the upkeep of the home. For example lets assume that you have a homeowner who neglects the property and after some years the house needs work (a new roof, HVAC, needs cosmetic work, etc.) lots of equity can be lost due to the lack of upkeep, on top of that as investor you have to purchase at a discount (profit margin). Hopefully there is enough equity for the seller to still walk away with something but this scenario is common - just gotta educate the seller. 

Hey Tanner,

The first thing you want to do is analyze the numbers - if you believe you are truly getting these properties below market value then you are looking good.

The next step would be to get the assets you believe are a good deal under contract, your goal is to control the asset asap. Make sure you have a due diligence period where you can present the deal to your buyers, make sure the DD period is fair so you don't waste the homeowners time.

Next, who pays the realtor commissions? Realtors are used to 3% which wipes out spreads - Set it up in a way where the seller pays for the commissions or work out a flat fee with the realtor. 

Whats going on Trace,

When I assign my deals I also have a non-assignment clause. This is done in order to prevent a deal from being marketed heavily by others and having multiple assignments (which is the recipe for disaster.)

If you committed and signed the assignment agreement then you will have to close and then sell the asset to the buyer you have.

You must learn the fundamentals - Marketing, Sales, Negotiations, Real Estate, Systems

From my experience this is the first challenge most people cant overcome. A close second is the constant rejection you get as a wholesaler. However if you are HUNGRY and really want it, then wholesaling real estate will change your life. 

Watch 5+ Youtube videos on wholesaling a day, become an avid reader, download a great script, make cold calls daily.

If you have the drive to do this then you will succeed. 

@Steven Adorno No worries, I don't mind sharing knowledge. To answer your questions:

1. My first deal was for $24,000 - I managed to scale my marketing by sending out a few yellow letters while simultaneously cold calling. 

2.Most of my knowledge came from Youtube videos, once I wanted to scale I went to a few seminars.

3. Best book I can recommend for a beginner is 'Secrets of The Millionaire Mind'. Why? Because wholesaling is mental game, you have to have the mind right to consistently produce. 

4. Biggest learning experience in the first year was that assignment fees are only a reflection of gross revenue, one must focus on understanding true net revenue and having a predictable business. 

Haha great post Steven & congrats on your first deal!

I've been in the business since 2017 and have closed on over 1 Million in assignment fees since then.

My best advice is the following: Dont rush to scale your business, one HUGE mistake I see guys make after their first deal is to hire acquisition managers, get an office, buy a bunch of expensive systems and boom their business is in serious trouble. Why? Because they didn't have a predictable business with consistent lead flow (No lead flow = No Closings) 

For now keep your overhead low - keep doing what your doing and study your KPIs, keep track of what marketing works and what doesn't, gradually invest a bit more into your marketing channels and have reserves for yourself (expect dry weeks/months with no closings). When you do decide to make your first hire, I recommend it be a Virtual Assistant, have him/her do all the admin tasks that are time consuming. Once you have a good grasp of what marketing channels give you the best return & you have closed a few more deals then I'd start looking into further hiring and scaling your operation.

Hope that helps. 

Whats going on Chris,

I have wholesaled multiple parcels of land, I suggest you download your states contract for land purchase (this is what I do in Texas). Most are available in PDF format after a quick google search. Best of luck

Whats going on Reginald,

Look up the purchase and sale agreement used in your state (google: (state) real estate purchase and sale contract) 

You can go that route or use a more generic contract, many are found here on biggerpockets. 

Best of luck 

Here is a list of companies I use:

Skipgenie.com (for single skips)

reiskip.com (for bulk skips)

wholesalingdata.com (for big lists with phone numbers included)