The concept of wholesaling still confuses a lot of people – and learning how to do it correctly to make great income confuses even more.
Luckily, today on the BiggerPockets Podcast we are going to sit down with a wholesaler who is crushing it with his amazing wholesaling business. Mike Nelson is going to take us inside his business and show us how he is generating huge profits through systems that you can start to implement in your own business today. From marketing to outsourcing to partners and more – this podcast will take you from wholesaling newbie to pro in just an hour.
Don’t miss this show!
Read the transcript for episode 42 with Mike Nelson here.
Listen to the Podcast Here
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In This Show, We Cover
- How Mike lost 2k on the first deal
- Partnering with others while wholesaling
- Virtual wholesaling
- Mike’s exact process for wholesaling a deal
- Postcards vs. Yellow Letters
- The one direct mail tip that blew Josh and Brandon away!
- Tips and tools for finding missing homeowners
- How to hire a Virtual Assistant to help you in your business
Links from the Show
- Accurint by Alexis Nexus
- BP Podcast 018 : Flipping, Marketing, and Wholesaling with Danny Johnson
- BP Podcast 038: Unique Strategies for Buying Real Estate with Travis Daggett
- ODesk.com
Books Mentioned in the Show
- Rich Dad Poor Dad by Robert Kiyosaki
- The 4 Hour Workweek by Tim Ferriss
- The E-Myth Revisited by Michael Gerber
- The Lean Startup by Eric Ries
Tweetable Topics
The secret to success in business is fixing other people’s headaches. (Tweet This!)
If you don’t have a business card – you are inconveniencing the other person to write down your number. (Tweet This!)
Connect with Mike Nelson
Mike’s Blog WholesalingHouses101.com
Mike’s BiggerPockets Profile
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50 Comments
Very nice podcast
people look forward to fridays, i look forward to Thursdays when the new podcasts come out!! thank you for the great podcast mike
I’m glad to hear it, Alex!
Thanks Alex. And thank you to BP, Josh and Brandon.
No, thank you! It was fun.
Another excellent show guys, with a lot of great tips! Kudos to you all. Question for Mike, what year did you get started? Thanks.
Thanks Abdul. I’m glad you enjoyed it!
Hey Abdul, I started back in 2010.
Great podcast as always! I get a lot of good information from them and I plugged my friend in to the podcast as well. He’s an investor and really enjoys it. Quick question for Josh, non real estate investment related, I grew up in NY and the tri-state area was NY, NJ, and Conn, as well. Which of the states are you from?
Hey Greg – Thanks for listening . . . I’m from New York, BTW.
I agree with Alex. For the past few months, I really look forward to listening to the new podcasts on my way to work every Thursday.
Mike, you gave so many excellent tips that any investor could utiltize. Not just the same old, A to B contract, then B to C, etc…. Your tips for virtual wholesaling seemed attainable and practical. I learned about some new websites and new ideas for finding absentee owners. I’m going to listen again this weekend and take notes.
Josh & Brandon, you asked some great questions! “AWESOME” podcast!
Thanks Michele! We do our part to ask what we think others want to know. I appreciate you listening.
Glad to hear that, Michele. Thank you. 🙂
On the podcast, Mike mentioned that he lost a deal because he wasn’t able to file the contract since it wasn’t notarized. In my state — and as far as I know, in all states — you can file what’s called a ‘Memorandum of Purchase Contract’ wherein you state that you are in possession of a real estate purchase contract, and you can have that ‘Memorandum’ notarized and file it with the proper agency. That action usually sufficiently clouds the title and makes the seller ‘come to their senses’. You can usually then proceed with your purchase, or agree to release your interest for a fee.
Mike glad you enjoyed! That may be the case but it really varies from county to county. If your county doesn’t know the laws then they will just turn you away which is what happen in my case.
Good job clearly laying out the process and mechanics of wholesaling, Mike. Confusion and questions come up all the time around this. Do you plan to close and rehab/flip or hold any properties?
Jon – I’m currently working on a rental portfolio as we speak.
Hey Jon! Yes, I’ve just recently started to buy and hold. I’m still trying to learn the ropes. I think it’s important one evolves as a real estate investor, aiming for bigger and better means of investing.
Mike…. I like your style. I admire the fact you looked into new strategic ways to market to sellers. I’m like you and am always looking for ways to improve upon or ways for things to be done differently in every aspect of business.
I’ll be listening to this podcast a few more times to better understand your technique. Hope you’re not in the Indy market!
Brandon! Lean Startup – Eric Ries = such an awesome read… I thought it was great for this business and Mike I would recommend you read it! Scott Case, founder of Priceline.com, actually told me to read it about a year ago when I met him at a tech event here in Indy.
Low and behold he’s quoted in the first few pages =) Thought that was pretty neat.
I believe REI will be revamped in the future by technology and having read that book makes me feel like I’ll have an edge on my competition.
Make sure Joshua reads it! And all your IT!
Great show
Thanks for all helpfull info
Thanks mike,josh and Brandon
Great show Mike.
Not a wholesaler, at least not as my primary strategy, but have been working on new ways to source deals and the best way to deal with sellers (REOs and auctions have been my big source up to now), so there was lots of good advice!
Good stories and lessons to learn from.
Thanks for sharing!
Also wanted to say that I have seen some of the business card debates and I am totally with you guys.
I don’t want to KEEP peoples cards but I don’t want to stand there for 3-5 minutes typing in numbers and emails into my phone rather than talking with the person or meeting someone else. Just an easy way to give it then you do that task later.
Also Josh great “quick tip” about carrying some in your wallet. I have a holder with a lot to bring to events but I always have 3-6 in my wallet incase I need one more randomly or I forget the stack.
Thanks Shaun – I always keep reserves in the wallet and typically have to refill every week or two. As you go through your everyday life, you’ll find people to give them to if you have them.
Great podcast!!! Fun, educational, informative!
Thank you so much!
Very good podcast! Very helpful and a lot of excellent tips! I will certainly incorporate them into my Wholesaling business. Thank you for presenting this Mike! I loved it!
Great show. Thank you for the tips. I am new to this so I will put this education to work. Also, Rich Dad Poor Dad was a great read. I will read the others that were mentioned.
Great podcast guys. I’ll take some of these tips. I love that you guys put an importance on business cards. I always feel like a real jerk when I receive others’ business cards but I don’t have any to give back.
And Josh… get to page 40 by next podcast!
Thanks for listening, Steve! I keep trying . . . hoping to get to pg. 28 one of these days.
Mike, Josh and Brandon,
As always, you put on a great show! There are always things I can incorporate into my own business model like marketing to tax-delinquent sellers. That’s great stuff!
In the last few years I have evolved into more land deals because it’s a lot cleaner than rehabs and rentals but every time I hear how you virtual wholesalers are raking it in I keep thinking i need to retool! Can I can ask a few questions?
How many wholesale deals do you average each month?
Are you splitting all of your profits 50/50 with your “boots on the ground” people?
Are you paying them out of your account after the deal closes or are they paid by the title/escrow company at closing?
Great Podcast! Very informative! Do you mind sharing the psotcard you use for delinquent taxes properties?
Do you ever get a movitated seller that has a mortgage or other lien on the property that they don’t mention and how do you handle it?
Great Pod cast, you touched on alot of interesting strategies.
One question I had was how exactly are you finding your “Boots on the ground” when you haven’t been to certain locations before/in a while.
Are you sending out Postcards to other wholesalers?
Thanks Mike, you made wholesaling a lot easier to understand, show how obtainable this is. I learned a lot and look forward to learning more about the wholesaling business.
Another great podcast. I really appreciate how you took time to go through the process step by step. However, one thing that I don’t follow is how after reading Rich Dad Poor Dad one would be drawn to wholesaling. It seems inconsistent with building wealth by accumulating assets that generate passive income. Is the revenue that is generated from your wholesale deals invested back into purchasing income producing properties?
Great podcast.
Mike,
Quick question: how do you go about pulling the list for the eviction records? a county website?
Hi Mike,
Great podcast. Thank you for sharing such good information. Could you explain the process to getting the evictions list you use, and how many times a year do you pull this list and mail to them?
Also with the tax delinquent properties, how do you obtain your list and how many times a year do you mail to these people.
Thank you so much!!
Lauren
Hey Mike,awsome podcast! I had to listen to it a few times. Thanks for sharing and ill be in touch.
My favorite podcast! Simple but highly insightful.
hi Mike,
How can I get a copy of that software that pulls back tax properties?
If you paid the guy via PayPal, why didn’t you just initiate a chargeback via PayPal? They have fraud protection in place to protect buyers.
Hi,
A wealth of information here. Thank you so much. However, I was wondering if you could tell me if the website scraper you used for the county sites is available? I apologize if I missed it. Thanks.
I too would be interested in this as well, website scraper you used for the county sites is available or did you use something like e lance or similar and had one created for your specific criteria. Thanks
Michelle
Just listened to this podcast…blew my mind. Looking forward to implementing some of these strategies! Thanks so much for the information!
Mike,
Spot on.. I learned a lot from this Podcast… Thank you.
Great podcast everybody! I particularly liked the ideas about getting started with driving for dollars, plus how to find motivated sellers. Question for anybody: where do you find eviction listings? The legal digest in my county doesn’t seem to report them, so maybe I am looking in the wrong place. Also, when does the info become public, i.e. what stage of the eviction process?
so much GREAT information, i am truly thankful for these Podcasts and BP!
You guys ROCK!! Another great Podcast thank you Josh, Brandon and of course Mike great tips I have to listen again to get my notes and read all the comments. Great Stuff.
Michelle
Listened to this while writing up some letters for sellers! Thanks for sharing.
So you got her to agree to less than 15k and she turns around within a week and sells it for 46k+ and the mistake made was you didn’t put her under contract? I’d say the mistake made was you tried to get over on somebody. I thought we were trying to help people here which in this case would mean to have recommended she list her property on the MLS rather than testing her for a fool. I thought we were supposed to be helping motivated sellers who otherwise wouldn’t have much better options, not scamming ignorant sellers who would be much better served with a little education and advice. Suppose that woman became a member of BP. How would she have commented in here? Would you really have charged that lady for backing out because she found out her home could be easily sold on the MLS for triple your price? What if she happened to be of the cashiers at your grocery store, or your kid’s bus driver, or a member of your church? Better yet, what if you had a friend with a similar home they wanted you to buy from them not knowing what it was worth on the MLS. The more I study this business the more I wonder how much of the profits are found in motivated sellers vs suckers and their unscrupulous predators. I hate to ask the question but where’s all the ‘thank you to the investor who saved the day for me’ comments here or anywhere? Sorry if I’m overreacting. Am I?
This was a great podcast. Just purchased Rich Dad Poor Dad. I do have a question. Can you explain what a wholesale transaction would look like if there was still a mortgage on the house. What would that transaction/deal look like? What documents are needed? Thanks again.