hey guys what's up manly ninja here kevin the property prince and we are
two guys take on real estate
so we're here today to talk about three steps for wholesaling that's right we're gonna go over three
simple steps about the wholesaling process that can help get your real estate career
off the ground so please make sure you watch to the end and like and subscribe so you can share
with all the others out there that are looking to get into wholesaling absolutely the more
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the algorithm and can reach out to other people to help them understand this important part of
real estate exactly and we're looking to pay it forward so you guys can learn from our mistakes
and we've made plenty of those oh yeah step one in wholesaling is finding the property now you can go
about this numerous ways you can put out bandit signs you can go on putting an ad in facebook
you can buy lists online and send out the postcards but the easiest way i think getting
started and for zero dollars is driving for dollars so that's what i'm going to show you
right now what we do here so you want to go drive around your neighborhood uh and you're gonna look
for distressed property that's the easiest way to start you're gonna look for overstuffed mailboxes
tarps on roofs boarded up property uh your broken windows you're gonna look for a lot of that
that's so i'm gonna take you here so you're gonna look for places that are unshoveled you got broken
windows the house has obviously been abandoned got a broken mailbox unkept hedges trash in the yard
the next step is you're going to want to try to find the owner and you can do that a variety of
ways one way is talking to the neighbor or you can go on to the assessor's database in your area
or the registry of deeds and you can find the red blast registered owner
then what you're going to want to look to do is do a skip trace
which there's multiple stuff online different ones like prop stream and stuff like that where you can
do a skip trace and get a cell phone number or an address of where they're currently living
and then you can either mail them out a letter or better yet give them a call or send them a
text message test messages work really really well right now uh you're watching two guys take
on real estate i'm kevin the property prince and i'm here to talk to you a little bit more
about the wholesaling process and what to do next after you've identified a target property
and located the current owner but before we get into that please take a moment and subscribe to
our channel ring the notifications bell so you can stay updated with further videos on this topic
we have a lot to talk about here now let's get into how to negotiate a wholesale deal with the
current owner of the property so really this is a situation where you need to be ready to make
an offer on a property but you don't want to make an offer too quickly before you've had a chance
to actually interact a bit with the owner you need to help identify why the owner should and needs to
sell the property in talking about that you'll be helping the owner understand their own motivation
which they often don't realize or have a full appreciation of having and understanding the
need to sell the property will make them realize their price and their value can be much much more
lower and flexible and make the deal that much more advantageous for you the reason that's
important to you is you're going to be needing to resell this property and sell it very quickly
you can't do that if you lock it in at too high of a price so you want to talk to the owner identify
some of their pain points their frustrations their cost of holding the property those types of things
and then talk to them about the condition of the property hopefully at this point you've done a
thorough investigation at least of the outside of the property if you need to get in and see more
you can coordinate that and set up a few minutes of walk through with an owner to get access to
the property but bottom line is you want to identify to the owner just how expensive and
how challenging it will be to renovate this property so he can get maximum value for it
obviously they're not looking to do that because they would have done it at this point so that's
going to be on you the buyer to have to do so they need to appreciate that it's going to cost
a significant amount of money in rehab that of course comes out of the value of the property that
they may be asking at full market value so you can essentially start setting their expectations
early by making them realize that the value of the property is a lot less and they're very motivated
so they're willing or should be willing to take a lower number than top top top market value and
then you're furthering uh that process by helping them understand that the property needs a lot
of work and you're starting to help them put at least in their mind dollar values to the amount of
work that property truly needs once that's done it's fairly easy to start throwing out numbers
now throwing out a number and an offer to a seller may be an insulting situation if you're like
lowballing somebody however if you set the stage properly you're actually not lowballing them
at all and when they if they were to react that way you can quickly say oh my gosh i don't mean
any offense i thought we kind of covered all the work that this property needs what are you talking
about this is a great price that i'm offering you for it and you can come with a sense of
sincerity because you've already set the stage for that if you didn't do all of those things and your
homework thoroughly on the property just get them ready for your low offer uh you know they're going
to turn around and feel um feel attacked feel like they're being their time is being wasted feel that
you're not serious and that you're trying to rip them off if you've done those steps properly
they're not going to have anywhere close to that level of feeling they may still reject that
low offer however they have a much much more comfortable sense of it that you're coming from
a place of credibility versus a place of just throwing them a low ball number to rip them off
that's a great starting point because no matter what your starting off number is there's a great
chance that they're going to say no to it anyway however maybe the maybe you settle up at 70 000
maybe your initial offer however was 40 000. you know yes you know they may reject that but at
least it gives you a great starting point and you you can turn around and reject them right back on
their premise by saying no what are you talking about i'm not lowballing you i'm not ripping you
off this property needs a lot of work and it's costing you six grand a year in taxes to sit on
this place you know we we talked about that stuff remember this is i think a great offer now you can
then go from there and work back and forth and it becomes a simple negotiation at that point simple
of course working sometimes in thousands and thousands of dollars but you get the idea they may
want eighty thousand dollars you've offered them 40 now you just are certainly looking for a way to
meet in the middle help them understand that you aren't going to be looking to do and renovate and
buy this house for for nothing you want to make something for your time otherwise you could if
you were going to pay full retail price for a property simply go and buy one off of the mls
with a realtor uh you are going to instead take on the project for yourself or one of your assignees
your one of your flippers is going to take on the project so they can put their time their hard work
into it etc and they want to make something for their time otherwise nobody would buy this and
they would simply just buy one retail condition for full retail price so going through that stuff
helping them understand what the process is is very very important helping them understand that
nobody's going to buy this if there's not a dollar to be made because the seller is the one now being
unreasonable and trying to rip somebody off it's not a psychological thing you're not tricking
anybody you're helping to show them and spin the table around a little bit to help them see from
the other perspective what they have what the cost might be and why anybody would want to buy
something like that so that's a great tactic to use it's a great way to be honest up front and
help people understand the truth from different persons perspectives once you can do all that
they're much much more flexible and understanding now doesn't mean that they're going to do the
right thing and make a deal on the property they may choose to say no not going to happen can't let
it go that cheap but don't really have any good real answer for why well that's fine they may
be stuck kind of in their mind and you may have to give them a little bit of time to understand
that and come to grips with it and then follow up with them a few days later a few weeks later
maybe even a few months later if that's what it takes but you've kind of broken that ice with them
set their expectations sometimes it takes some folks a little while to kind of warm up to your
logic and your reasons uh for how they can solve their problem of this house sitting there after
that happens if you are able to come together to a number and maybe you negotiated and ended up at
70 000 you should be willing to immediately sign that contract and put down your down payment you
should never ever ever give them time to rethink this you should immediately you're ready to buy
you thought you were doing business with somebody that was ready to sell so why wouldn't you after
you've agreed on your terms absolutely put it down right there in writing the only thing you can gain
from giving people a week or a day or a few days or whatever it is to meet up with you to make the
stuff get signed the only thing you have to gain is a waste of your time because they backed out of
it or they immediately went trying to get a better offer competing with somebody else somewhere else
so the next thing you need to do is have your contract ready and make sure you immediately
put it under contract and bind it with some type of cash down payment offer what i like to do is i
like to meet them in person hopefully i'm doing a lot of this in person already have your contract
put a 100 bill with that maybe a couple hundred dollars whatever you'd like to do for your down
payment have it all signed and filled out and then take a picture with your phone
of that changing hands this way there's no doubt about it at later points that money changed hands
you performed on your contract you've already paid the down payment and you're closing in the next
couple of weeks i hope that was helpful there's a lot more we can go into for details on that
and we will be doing that in upcoming videos so make sure you click the notifications icon
on our channel hit make sure you hit the subscribe button so you can stay tuned and we'll be talking
about all these contacts all these topics in much much detail uh later as the channel grows
thank you so uh let's talk about the last part uh we're talking about how to find a buyer for that
uh property you just got under contract that's great yeah you worked really hard you targeted a
property you've convinced the seller to grab you a great contract price on it and now what do you do
so there's a couple things you're gonna either sell the contract or do what's called a double
close that's basically where you close at the same time you're buying it and uh selling it
so there's just basic exchange of paperwork okay so if you're assigning the contract basically the
contract you have written up says you're either going to buy it yourself or you have the option
to assign it to somebody else that is going to buy it instead correct okay great so wow now you got
to do is just find somebody that all of a sudden wants to buy a house like fast i guess right so
if you haven't already built your buyers list uh there's a couple key ways to actually build that
buyer's list yeah and you should be doing that the whole time you should be buying your uh building
your buyers list while you're out also looking for properties to put under contract you gotta
work both sides of this equation exactly and uh one way to do that is actually finding your local
uh real estate real estate meetup groups and stuff like that and go attend them and just network with
people find out who's buying in your area yeah and that's an easy way right now i mean it's low
supply so people are really you know looking for property couldn't have said it better myself matt
the uh the social aspect to this is very important start making acquaintances friends start hanging
out uh with people in the real estate world uh join facebook groups like crazy there's a oh
yeah such and such area investor groups you know for your location uh join those things and start
getting your name out there a little bit but most importantly start keeping track of people that
tell you that they are interested in acquiring a house and maybe doing a flip someday yeah create
a google doc sheet or something like that where you can keep you know all that information in one
place and kind of you can separate it out so who what if they're looking for multi-family single
families whatever it might be have all their contact information that you can get in there
their phone numbers their emails that kind of thing and as soon as you get this contract signed
you should be blowing up that buyers list exactly you want to give them as many as much time and
heads up as you possibly can you want to get the word out to as many of your potential buyers as
possible why do you want so many different buyers interested in the property now why because they
can sell for the highest price i mean it's just like putting any other house on the market you're
hopefully going to get competing offers so if you got a house under contract it will say 70 000
immediately start what you start talking to your buyers oh yeah right i generally
have a preferred buyers list people that we sell you sell to consistently uh and go to
them first because why wouldn't you treat your best customers the best absolutely they also
have done business with you they know the stuff works they want to buy more property
and they close on the deal after you know they're going to perform they know you're going to deliver
exactly what they're looking to buy accurate arvs rehab estimates that are pretty reasonable and a
vacant cleaned out you know no must know fuss property exactly so why do you talk to multiple
people well you want to get a bidding war going sure but also you want to sell this thing quickly
so it gives you the best option to sell and make sure this property gets closed exactly and what do
you what do you do what do you tell them how much the property sells for how do you figure that out
well i mean you can either be direct and say hey i've got it under contract i'm looking to make
x fee i mean that again being honest and open it's not a bad policy at all absolutely not everybody
thinks that if they know you're making money on this they're just gonna say no that's not
fair you're not doing anything that's not how this works whatsoever exactly and why would we want to
you know pay someone a fee well you know why our time's valuable and they know that too their time
is valuable because they have the renovation skills the abilities to get a property up and
running and then resold very very quickly that's what they're great at they recognize what you're
great at and they're willing to pay for that service exactly so if they're happy to make 30
40 whatever thousands of dollars they're going to make they're not going to turn away a deal where
they can make that money if if they know you're making money it doesn't make any sense very well
said kevin thanks i appreciate that every once in a while something comes out just the right way
but so yes that's uh you know how you're going to find the buyers once again go to the rias check
out facebook groups just posting the property up on a facebook group and saying hey dm me
and you're going to get a ton of dms trust me absolutely right there's a lot of buyers right
now but this is something that you know again you can use in any market is to to network with people
that are interested in buying properties can't say that enough don't neglect this part of the process
we've seen it where people have gotten stuff under contract and have no idea where to go yep
so don't be don't let that be you make sure you're successful we're going to be continuing to put up
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be successful exactly learn from our mistakes yeah don't learn from our mistakes don't make
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you