I love wholesaling. Don’t get me wrong. I don’t like the contracts and earnest money deposits in the States or the downpayments in Canada.
What I love about wholesaling is the quick matching of buyers and sellers. You still need to use the phone and interview buyers and sellers. Collect documents.
The only thing that gets in the way of success when wholesaling real estate is fraud.
You never know if you are wholesaling a real billion dollar portfolio until you get your fee held in escrow from the buyer.
Do you really think that your website is strong enough to get a seller quick enough before your contract runs out? Mine is.
Mine instantly matches buyers to sellers and promotes them virally to attract even more buyers and sellers.
If you want to wholesale you need a viral marketing machine that automatically brings you buyers and sellers.
If you do wholesaling long enough, the only difference between you and the crowd is your logo.
If you have a different experience that you repetitively do then you are a winner.
That different experience when wholesaling backed by a logo is money.
Forget all of the people. Currencies depend on marketplaces. Turn your logo into an asset.
It’s up to you to decide where you place your logo— letterhead — in real estate it’s value is backed by the size of your network. Flock.
Real estate wholesaling can be done with limited funds compared to the other strategies according to Brandon Turner over at BiggerPockets.
I think it’s true.
The part where I disagree is that almost every startup takes $16K to get going.
The only thing that you have to worry about with wholesaling is whether you have enough leads coming in at the top of your marketing funnel for the amount of runway you have. It should take 9 months to close a deal if you aren’t a good closer — because you have to get desperate enough to learn to close the deal.
There is so much money out there but you have to remember that each connection is only worth $1. I don’t know where the money comes from if there is a marketplace competing to close deals.
The lead sites want buyers and sellers and are investors — probably. The sites charge far more than $1 a lead but I think it’s military that controls the price of real communication between buyer and seller to be a dollar.
You need to connect with real buyers and sellers. They don’t have to be cash buyers and motivated sellers — but principal. Not direct to or a representative of.
If you have the Flock’s landing pages on your websites then you can see if you have real buyers and sellers. The price of the communication is $1 per match.
Is the communication all of the money or not?
I don’t know.
I have billions of dollars in cash buyers funds on my site. It’s like real cash when they are matched.
Are you making money as a wholesaler when the price of that deal is $1 dollar.
It’s absurd to pay $500 a month at another site for a list of leads or $2000. You probably get more leads at a higher price.
So, how can you make money at a lower price on my site when my matching algorithm prices out middlemen.
Maybe I have it all wrong. A pop costs a dollar — or a soda in the States — it doesn’t mean that the price of soda supports the American dollar.
How can you have 300 contacts and not make money? You should be making $150M in commissions on my site.
You become the middle man when you use my
If you can pay a $1 a match then you are in business.
The network pays for those who can’t pay.
Are you traveling all over the world doing deals or are you doing it locally?
Most wholesalers are marketing different locations remotely because that’s where the marketplace is.
Locations are important.
With a central server you can do deals remotely from anywhere in the world; The locations are digital — but real!
On the motivated sellers list and cash buyers list the dots on the map overlap. So it looks like there is only one seller in the location. All the dot tells you is that there are buyers and sellers in that location — You need to list a buyer or seller to access a list in that matching location.
If you list a buyer, or from your landing page, that buys everything all over the States you’ll get 100 matches.
If you list a buyer that buys in one market for a few asset types — or buildings — you’ll get 3 or 4 matches.
The number of matches that you’ll get grow over time — so these numbers are not static — You’ll get more!
The question is: “Do you want to send contracts and close deals locally.”
I know professionals on LinkedIn that post pictures of them closing deals using FaceTime and messaging apps without even meeting their buyers and sellers in person.
If you submit 30 contracts you should close one deal.
Locations are pretty messed up on the web. The best location server by far is Google Maps. That’s what I use on my site to match. Even the best analytics companies don’t have reliable locations. For me anyways. Whenever I use my site at a different location my analytics shows the wrong location and the profile on my website even shows the wrong location. The matches locations are accurate but I’m not sure about analytics or the profiles — if they keep changing.
Are people traveling doing deals?
It’s pretty easy to see a list of buyers and sellers on your phone and use it to look up what you listed on the Flock using buyer and seller codes if you are using the spreadsheets. You can use Google Sheets and it’s pretty easy.
I use the spreadsheets to send emails to matches buyers and sellers
The Legal When Wholesaling Real Estate
Don’t set up too many corporations when you are getting started out. You can file a corporation yourself if you fill out the paperwork rather than hiring a lawyer.
With corporations, you have to use double entry accounting each year and not the cash method. Double entry accounting can take more time. That might sound funny to say!
I think wholesaling is legal if you don’t represent the buyer or seller in an agency agreement. I’m not a lawyer but why can’t you invest in real estate?
I think it’s different in every jurisdiction.
Lawyers are expensive.
It takes 30 contracts to get a closed deal.
You should hire an attorney.
Consider it a apart of your $16K “no money” startup budget. Don’t forget to order business cards.
The key to the steps is
in your purchase and sale contracts so that you can flip the contract — not the real estate — to a
from a seller.
If you are getting money upfront from the buyer in escrow then you can sign the purchase and sale contract with the buyer first using an assignment where you write your name.
You need a blog.
Big websites have 100s of thousands of visitors to their website each month. Mine just converts real virally.
Landing pages are useless without a advertising budget or a blog. Google Adwords is expensive. Buyers and sellers on Facebook fill in forms for a reasonably price. Send business cards in direct mail with your landing page on it.
Get cash buyers from your landing pages. In other words — your website!
If you have two landing pages — one for buyers and one for sellers you can send contracts out to each hoping to close a deal.
I like the idea of getting a deposit in escrow from cash buyers — cause you know they have the cash!
That way when the deal closes with a lawyer you get paid — and don’t have to worry about getting cut out.
If you do get cut out, just consider it your 29 tries out of 30 that convert to a closed deal.
You should net millions.
If you don’t, you will have a valuable list of cash buyers and motivated sellers.
These lists propel your career forward. Each buyer gives you a seller and each seller gives you a buyer. Sometimes it multiplies — over time!
It just takes time.
Even a really viral marketing machine takes year to grow cash flow when it starts on a small budget.
I think that’s enough for marketing — You just need names.
Here is a step-by-step guide on how to wholesale a real estate deal.
It takes time and money to wholesale contrary to this because you have to set up your own marketing system — purchase one — and have money for earnest money deposits.
If you love rejection you can try submitting purchase and sale contracts without earnest money deposits.
You are competing versus other investors — even ones that are just starting out submitting contracts.
Why not scale your marketing system to close many deals and not just one?
You need to follow up to collect documents for weeks.
Where are you going to get your first buyer and seller?
I agree it takes time.
What skills do you need to be good at to be a profitable real estate wholesaler?
You need to know your personality type. Everyone is a driver.
Are you a driver or are you analytical?
Drivers close deals and don’t always look for win-win solutions. You see this all the time in the real estate industry.
Analytical people are good for doing the math and problem solving.
Try closing a deal with a win-win in an environment of people that are out for themselves — or are drivers.
Profit is made by calculating after repair value (ARV) minus expenses.
It’s like an income statement for each deal.
Each middleman needs their cut.
That has been Wholesaling Real Estate: The Mating Dance.
Go get a landing page installed on your website!