For many new wholesalers the hardest thing to do is get started. What do I do? how do I do it? It is this fear that discourages and stagnates many before they ever reach their first deal. It is the first deal that is the hardest. Once you get past that you are off to the races in search of more.
The first thing that any new wholesaler must do is build a buyers list. Without buyers even the best deal will never make it to the table. A deal is not a deal until you get paid! I would suggest reading my posts on building your buyers list before you take this step. Trust me, you will thank me for it.
Now, how to find deals? I agree that there are thousands of deals at your fingertips. Online classifieds, For sale by owner sites, lead generators etc... But those deals are at the finger tips of every one else too. In today's struggling economy there are more wholesalers and Bird Dogs surfing the net in search of deals than there have ever been before. I know wholesalers that search at work, on their lunch break and just about every free moment that they have for that perfect deal.
If you want to make it out here in this doggy dog world (bird dogs get it?) you have to search for deals where no one else is looking. These best deals are those that are sitting right in your back yard. Many wholesalers have day jobs and are not able to bird dog the streets in search of a deal. This is why they search endlessly on the Internet for their deals. You better believe that every deal posted on craigslist is getting emails or phone calls by wholesalers. Why even get caught up in this competition when there are so many deals waiting to be discovered right in your neighborhood.
I know your saying, "wait a minute I have a day job too". I am not suggesting that you spend your whole day driving around. Simply leaving 30 minutes earlier for work or taking another route home to drive down side streets is enough to find a great deal. Make sure you keep your camera in the car so you can readily take pictures when you find a vacant property. Write down the address and research the owner when you get home.
Get the owner's name from the tax records and hopefully their address and phone number from one of the owner research resources that I have placed in the side bar for you. Research the ARV of the property (again in the resource section) to find out what the property is worth. Many of the ARV sites will also tell you how much they paid for the property and when they purchased it. This amount can change if they refinanced the property. So don't depend on the purchase price being the amount they owe on the property.
Contact the owner and find out if the property is for sale. Ask them to give you the least amount they would take for the property if you paid cash and closed in 30 days. Once you get their price (don't agree on the price yet) ask to schedule a time to see the property. Go look at the property, estimate repair costs and tell them you will get back to them in 24 hours. Now go and put your deal together. If it seems like it is a good deal then call the seller and Lock it up with an option agreement.
Call every buyer on your buyer's list and tell them about your deal. Post your deal on Craigslist and other classified sites. You are now a cut above the rest with a deal that no one else knows about. Hot off the streets!
Written by Carol Stinson. All rights reserved.
Check out How To Identify A motivated Seller
Back To Real Wholesaling Main Page
For more information on assigning properties I recommend that you read the book " Be a Real Estate Millionaire" by Dean Graziosi.
Saturday, September 5, 2009
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