realestatewholesalesystem

1. www.realestatewholesalesystem.com 6 steps to 6k in 16 days Wholesaling FSBOs and REOs

2. Benefits of Wholesaling • Fast Cash – 30 days or less • Little or no money required • Minimal risk • Sell to a pool of regular buyers over and over • No tenant issues • No contractor issues • No holding costs • No credit needed • No or low barriers to entry • Profits range from 2k to 20k per deal • Can wholesale FSBO’s or REO’s

3. Disadvantages of Wholesaling • No real tax shields available • Profits are typically less than other forms of real estate investing • No long term wealth building or appreciation • Remember Risk versus Reward

4. Wholesale Formula • After Repaired Value • Multiply times 65% • Minus Repairs • Equals Rehabber “Strike Price” • Anything below the strike price is profit

5. Wholesale Example • After Repaired Value 100k • x’s 65% 65k • Repairs -12k • Strike Price 53k • Anything below 53k is profit

6. Wholesaling Basics • Find buyers first • If you have buyers you have a business • No buyers = no exit strategy • FSBO’s = marketing and assignments • REO’s = listing agents and back to backs • Remember the formula • Market on the cheap at the beginning

7. 6 Steps to 6k in 16k days Wholesale Profits • Marketing and Evaluation • Offer • Secure contract between “A” seller and “B” buyer • Market property to buyer’s list & Sell to “C” buyer • Sign contract with “C” buyer = assign contract with addendum • Close

8. Elements to Ongoing Wholesaling Success • You – what’s your mindset and motivation • Your Market – neighborhoods, prices, • Your Marketing – for sellers and buyers • Your Buyers – your exit strategy • Your Systems – automated to repeat over and over

9. Wholesaling for Starters - Four Rules • Rule #1 – Keep your marketing strategies cheap • Rule #2 – Always be marketing for sellers & buyers • Rule #3 - Don’t worry about your brand. You’ll build your brand as you do deals. • Rule #4 – Understand your wholesaling sweet spot, prices and what buyer’s are willing to pay

10. Rule #1 – Marketing Strategies Cheap • In the beginning spend as little as possible • Until you have a better feel for the market and what marketing is working I recommend you keep it inexpensive • Once you start to see some results and have a few successful deals under your belt then expand your budget

11. Rule #2 – Always be Marketing for Buyers and Sellers • Marketing for Buyers – Free • Classified Ads online • Referrals • Mortgage brokers, Hard $ Brokers, • Attend Auctions • Attend REIA’s, HBA, and ALA • MLS/ Auditor Ninja Tactic • Realtors • Investor Open Houses • Google “Real Estate Investors, Cleveland” • Internet Marketing – Squeeze Pages = SIMS • Video, Articles, Email, Social, Banners, Websites

12. Rule #2 – Always be Marketing for Buyers and Sellers • Marketing for Buyers – $$ • Classified ads in newspaper • Signs – Bandit and Yard • Commercials, Radio • Billboards • White and Yellow Pages – Covers and C.C. sized ads • Direct Mail to Apartments • Promotional Material

13. Buyers • Rehabbers • Landlords • Fixer – uppers • Builders who do rehabs on the side • Get Buyers into properties by telling sellers and agents that you have a partner (funding partner) who needs to see the house.

14. Rule #2 - Always be Marketing for Buyers and Sellers • Marketing for Sellers – Free • Driving for Dollars – Vacant Houses • Classified ads online • Craigslist.com, oodle.com, trulia.com, many others • Referrals • Mortgage Brokers, Attorneys, • Attend REIA’s • Building code violations – tall grass • Internet Marketing • Video, Articles, Email, Social, Banners,

15. Rule #2 - Always be Marketing for Buyers and Sellers • Marketing for Sellers – $$ • Classified ads in newspaper • Signs – Bandit and Yard • Commercials, Radio • Billboards • White and Yellow Pages – Covers and C.C. sized ads • Promotional Materials • Direct Mail to Lists • Probate, Free and Clear, Expired Listings, Delinquent Tax Sales, Out of Town Owners

16. Sellers • Motivated sellers with equity • Banks with REO inventory

17. Wholesaling: Branding • Forget it • Pay for things that result in sellers and buyers and closed deals • Build your brand as you close deals • Build your reputation as you close deals

18. Know Your Wholesaling Sweet Spot • Where do Wholesale buyers want to buy? • Inner ring neighborhoods • First ring suburbs • First time home buyers - they buy from rehabbers • If you get something in a prime suburb the rules stay the same • If you get something in the country the rules stay the same

19. Wholesaling: Seller Lead System • Buy Calls – if there’s equity “GO” • Pre-Call Planning – drive the comps • Presentation – Hot buttons for selling • Negotiation – what’s the least you’ll take? Is that the best you can do? • Contract

20. Phone Scripts • Where is it located? Sweet spot? • What’s it worth fixed up? • How much work does it need? • “If I could pay you all cash and closed in a week what’s the least you would take?” • “Whoew, is that’s the best you can do?”

21. Wholesaling REO’s • Network with listing agents and asset managers • Let listing agent manage both sides for two commissions • Target houses on market for 3 months or more (6 months) • Less competition than new listings • Make offer with normal Realtor contract • Add inspection contingencies • Sell using normal contract for B to C

22. Wholesale Closing: assignments • FSBO’s • “A” to “C” closing • Assignment fee paid outside closing • Addendum explaining fee and assignment • Memorandum of Purchase Agreement

23. Assignments: Contracts #1 • Standard Purchase and Sales Agreement • Assignment of Contract Addendum • Give both to title company

24. Assignments: Contracts #2 • Option Contract • Notice of Option • Affidavit of Contract

25. Assignments: Contracts #3 • Option Contract • Notice of Option • Affidavit of Contract • Back to Back Closing

26. Wholesale Closing: Back to back • REO’s • “A” to “B” then “B” to “C” closing • Back to back • Profit is spread between the two deals

27. Back to Back: Contracts #1 • Standard Purchase and Sales Agreement – “A” to “B” • Banks required P&S agreement • Contract Addendum – “A” to “B” • Banks required addendum • Title company – “A” to “B” • Standard Purchase and Sale Agreement – “B” to “C” • Vanilla P&S agreement • As - is where-is • Owner of record prior to closing • Title Company – Your preferred title company • Closing instructions, title commitment, HUD1 from “A”- “B”