I want to show you how you can make five thousand or even ten thousand dollars and more in one transaction.
Wholesaling real estate is the process in which someone finds a home that someone wants to sell at a highly discounted price and then sells it to investors for an assignment fee. This fee can range greatly from two thousand dollars to fifty thousand dollars and more.
I will lay out for you the steps needed to complete a wholesale deal and provide you with links to resources to learn more about specific topics.
- Create A Buyers List To Sell Fast
- Create Letters That Sellers Will Open
- Finding Homes That Will Want To Sell
- Building Rapport To Lock In The Relationship
- Negotiate And Get The Deal You Want
- Signing Paperwork Everyone Is Happy With
- Contact Your Buyers List For The Sale
- Sell That Deal With A Lawyer
- Collect That Money
Create A Buyers List To Sell Fast
Creating a buyers list can be simple. One effective way would be to create a web page on Wix and collect emails with a subscription template that sends subscribers to your email list. This can be done within Wix or with a separate email provider like mail chimp.
You will look more professional if you have a site you paid for however it is also effective when starting out to simply create a page then submit a Bitly link or google short link to potential buyers.
To locate buyers use a LinkedIn profile and ask them if they would like to be apart of your buyers’ list for your given location. Most will say yes. But some will say no. in our LinkedIn search type in investors, brokers, private lenders, and real estate agents.
This can also be done with Facebook groups, talking to people who rent homes. And talking to property management to see if they know anyone who would be looking to buy a home.
When messaging these people you will want to ask this. “Hi my name is ______ I was wondering if you would be interested in wholesale properties that will be for sale. Maybe you know someone else who would be looking to buy this as well?”
You’ll want to build your list. Get as many people as you can to be a part of this list. Ideally, you’ll want to have two hundred or so investor buyers. I’ve also heard of people putting up fake homes for sale that you would expect to get and collecting interest on craigslist or Kijiji. I would advise being truthful although it is a tactic I know others use.
Create Letters That Sellers Will Open
Creating letters is pretty simple and many people resort to paying for what they want online. Probably some of the most effective letters used are from yellow letters. They have an awesome service where you can purchase and ship out letters to homes. This is great when you have a huge list of homes you want to hit and have the data available to send that to them. I live in Canada and so this method is not available, but there are a few alternatives of people who print out and ship out your letters for you, I don’t have a reference for them at this time. If You do Purchase from the link above, please mention my name as its a great way to support this blog.
For the sake of offering cheap advise I’ll tell you to go to the dollar store and buy colored letters. You’ll want them to look like they’re a party invitation. This way, when they’re delivered they will more than likely be opened out of curiosity. Inside you’ll want a handwritten letter
The handwritten letter should read as follows:
Shared from yellow letters. There are also a slew of other letter types to choose from on their site or others who’ve written them like Max Maxwell. I find something that is basic does the job. Does it have to be yellow?. No. it can be handwritten on lined paper and it will do the job just fine. The more personal the better. Make sure to have a phone number and an email for them to contact you.
Some people have also advised adding in “if you’re not ready to sell your house now, please keep this letter with your important papers” quoted at Bigger pockets forum here. You’ll either want to fill in the property names as you go or wait till after you’ve located the homes.
This is not the only way to market to sellers. But it is probably one of the most effective. You could also put ads up on craigslist or Kijiji and see what you get. My first signed contract was a lead from Kijiji.
Finding Homes That Will Want To Sell
If you can picture a home that is run down where people look like they might want to move, and are struggling with upkeep. Then you may have found a home that could be a high chance of getting back to you. Your target home can be any home really. But Ideally, you’ll want to find a home that hasn’t been up kept. Homes typically have boarded windows, uncut grass, roofing that looks terrible. Broken windows. Siding tore off or looks like it needs a good paint job. Homes like these are higher turnover but, they are not the rule. You will want to focus on a particular neighborhood in a city. Find an area with homes like these and pick a few hundred homes or so to send letters to. If you know the owner’s name. Fill out their name in the letters as well. You’ll want to have a letter go out once every two weeks for as long as you can maintain. They say it takes 12 points of contact before someone is willing to say yes to what you have to offer. Follow up is key. Once you get your first sale you can pay for and automate the rest of the letters sent out.
Comment below about your opinions and what has worked for you. what is the cheapest way for you to find homes and collect buyers? subscribe to my email list in the side bar. thanks for reading.
Next, you’ll want to have yourself ready to take phone calls. I’ll talk more about this on the next page. I”ve decided to break this blog up into two parts as this is far longer than I expected. Please follow here to read more.