Wholesaling houses is the easiest and quickest way to make quick cash and start your real estate investing career. If you’ve been on the moon the past 5 years while this strategy has gained popularity, wholesaling involves finding a motivated seller, negotiating a rock bottom price with them, signing a contract, and then (before closing on the property) assigning that contract to another investor (a rehabber or landlord) for a fee, typically anywhere from $2k to $20k or more depending on how good the deal is. You don’t need any money to do this (aside from marketing). I had $1.50 in my bank account the day i signed my first contract.
Keys to wholesaling houses:
1) You need a steady stream of motivated sellers contacting you.
2) You need to build a buyers list of Cash or Well Qualified investors who want to buy your deals.
3) Get Paid.
It’s pretty simple, but there are definitely steps you need to take, people you need to network and connect with, certain contracts to use and things to avoid.
Getting Motivated Sellers to Contact You:
Here are some ways to get your phone ringing…
* bandit signs (18″ x 24″ yellow or white corrugated plastic) – hand write them – have them say “I’ll Buy Your House Right Now! CASH! and your phone number or 800 number – put them up on fridays in high traffic areas of your city at a stop sign or light – you can opt to use stakes or staple them high on telephone poles – some suggest you pick them back up on sunday, others suggest to let them ride….your call. www.signwarehouse.com
* absentee owner post cards – send these out to absentee owners who might be looking to sell (maybe they have bad tenants or need some quick cash – you never know). you can get any type of list your looking for at www.listsource.com or www.realquest.com. – the postcard should say something like ‘Hey, i noticed you don’t live at “property address”. I’m contacting you to see if you’d be interested in selling. I have cash and can close in 2 weeks. give me call”
* probate mailers (my personal favorite) – an estate enters probate when someone has died and an executor is appointed to disperse any assets held in the estate or mandated by the will. You can go to the probate office at your county courthouse and ask to see current probate cases (before you waste your gas, check to see if your county’s probate records are available online). In these cases you’ll be looking for this pertinent information: decedent, property address of decedent, executor/administrator/personal rep and their address, attorney (if there is one) and their address. Send a respectful letter to the executor expressing your condolences and letting them know you can take the decedents property (which they probably don’t want anyway) off their hands and get them cash for it in order to settle the estate. You may also want to send a letter to the attorney who has been assigned to the case. Let them know who you are, what you do and how you can benefit their clients, because you want to GIVE first, then receive. If you’d like more information on probate investing go to www.probatesbypreston.com
* Expired MLS listings – You can obtain Expired MLS listings from your realtor. Don’t have one? Just start calling local brokers until you find one that is ‘investor friendly’ and narrow down a top dog you’d like to be friends with….it’s even better if they handle a lot of REO’s too. Maintain a partnership with them, referring business back and forth (that way you both grow, learn and make money) and soon it will become second nature to ask them for expired listings.
* Local Newspapers and Craigslist – don’t forget about that old dinosaur, your local newspaper…yes people still put their houses in there….look for the FSBO’s or Investment properties. www.Craigslist.org is also a great way to find seller leads. Just reply to the for sale by owner postings in the real estate section.
These are just a few quality ways to get leads coming in like a flood. REMEMBER, consistency is the key…so whatever you decide to do….STICK TO IT. Don’t just send out 30 letters or postcards and wait….Keep doing it over and over again, only then will you get good results.
Next Time I will discuss getting motivated buyers to contact you…
The King of The City