Read this and let me know what questions you have.
This is important. You’re half way there. Let’s get
all the way there… and make some money!
If you can’t find a buyer for your property, you have just
wasted TONS of time, effort and MONEY. If a ruined day
were a possibility with me, a cancelled contract would do it.
Do the following immediately, as soon as you get a contract
signed with the seller: Days 1 – 3
1. Record and upload a video walk-thru of the house,
inside and out, and post to your buyer website.
You can do this with a flip cam, or even your smart
phone. Narrate the video as you walk through. Smart
and funny is always good. Don’t shy away from the
bad parts, either. Buyers need to see them. And,
they will appreciate your honesty and will begin to
trust you. Also, a quick intro and outro of just you,
talking about what you’re about to see and what they
just saw, and how to get in touch with you, is a great
idea. Most wholesalers don’t do this. This is what
will separate you.
You need to have access to the house. If the seller
asks why, it’s so your inspectors can come in and
complete their inspections. And, if they ask why
you’re filming it, it’s for your private investors. Ex-
plain that it’s just a matter of formality, but that
they like to see it before they finance it.
Upload the video to your buyer site. You can use
http://oncarrot.com/ to create a buyer site, as well.
I recommend two different sites – a buyer and a seller –
rather than combining both in one. Upload it to youtube, as well.
When you upload it to YouTube, make sure you tag
the video with things people will search. Namely…
(your city) investment property
(your city) wholesale property
(your city) real estate
(name of top wholesalers in your city)
(your city) rental property
Add all of the information to your site, including specs
of the house, repairs, % of ARV, CAP rate and cash-on-
cash rate of return and really sell it! Title it things like:
(your city) Rental Property
(your city) Real Estate - Tons of Cash Flow!
(your city) wholesale property
And, make sure you use all of the available characters
allowed in the description. Talk about what a great
deal this is. Use keywords like the name of your city
and real estate investment property.
2. Call all of your VIP buyers (and really sell it!)
Mr. Buyer, I just to this property under contract and
I called you first. It’s an incredible long term investment,
with a 20% CAP Rate and annual Return! Where else
are you going to get that? In 5 years, you’ll own it free
and clear and it’ll then be an ATM machine, just spitting
cash at you every month!
or…
Mr. Buyer, I just got this property under contract and
I called you first. It’s a 3/2, block construction and it needs
almost no work. You’ll have it ready and on the market
in 30 days.
And then end it with, “I’m going to email you all the details,
and the numbers, right now. If you want to go see it, let
me know quickly. In 24 hours, I’m sending it to all of my
buyers and I’m putting it on the internet, too.”
To determine which of the two above to use, or anything
similar, you need to know what you are selling (a rental
or a fix and flip) and who you are selling it to (a rehabber,
who wants to fix it up and sell it quick, or a landlord, who
wants to put as little into it as possible, and keep it for
years and years). Landlords value CAP rate and annual
Return more than instant equity. Rehabbers are the
opposite, and in fact, don’t care about the long-term
investment opportunity of a house, whatsoever.
Stay true to your word, too. If you tell the buyer you will give
him 24 hours, then give it to him. If he sees it on the internet
before that, or gets an email on it from another wholesaler,
you will lose credibility.
If you don’t have any cash buyers yet, skip this step and keep
reading. Also, if you can’t reach a buyer, feel free to send
a text message, stating you have a deal to offer.
3. Blast out an email to your buyers… and everyone you know.
Send it to buyers, friends, associates… everyone you know.
Offer cash for referrals. Be detailed. Put the address, specs
of the house, benefits (% of ARV, CAP Rate and Return, etc,
etc), the numbers (repair estimate, monthly expenses for
a landlord, etc, etc). Use the attached example as a template.
If you have a “buyer” website, where you list your properties
for sale, you can usually generate an email from it. If not, you
can use iContact.com or ConstantContact.com. Or, you can
simply use a generic email. However, you will want to use
a template, so it looks professional and the same every time.
If you use Vflyer.com, you will be able to generate an email
through it, I imagine.
(click here to download cancellation letter)
The email copy (what you say…) needs to be similar to what
I put below for your craigslist ads. And, make sur you add
this to all of your ads:
$2,000 non-refundable deposit required
No depost… no deal. This deposit is held by the title company
and put toward the purchase price at closing. Deposit check
can be made out to you or the title company (info on title
companies below), whichever the buyer chooses.
*** If you’re a Mac user – laptop, phone or tablet – and you
want to really stand out and impress your buyers, you
should invest in this… http://www.propertyevaluator.com/
It’s the most comprehensive analyzation tool that I’ve ever
come across. And, the standard version is free! Email a buyer
a PDF report using this tool and he won’t even need to see
the house…
4. Put out 50 yellow bandit signs. But, ask me before you write on
them. You will use a version of one of the examples below, de-
pending on if your deal is a rehab or rental. But, the numbers
need to be accurate. So, get with me before you write on your
bandit signs, so we can plan out exactly what to write on them.
Examples:
3/2 block at half price!
20% annual ROI
won’t last long, call today
call Lisa (number)
Or…
Attn Cash Buyers!
3/2 block, 1250 sq ft
mkt price $130k, you pay $65k
won’t last long
call Lisa (number)
Again, need to know who you are looking for, a rehabber or landlord.
It may be good for both. But, in most cases, it’s one or the other.
Tailor your ad to the buyer you are looking for. Rehabbers want
tons of equity; low % of ARV. Landlords want high, double-digit
CAP and Return.
5. Post your property to online classified sites, like craigslist, backpage,
kijiji and oodles. Use www.postlets.com to post to create one ad
and post to multiple sites at once. This needs to be done every
other day! So set a reminder to re-post your ads…
Here is an example of what your ad should read like (landlord ad):
Subject:
Landlord’s Dream – 20% CAP and annual ROI
Body:
Duplex in great area!
20% CAP rate and annual ROI!
$.45 on the dollar!
Mkt price $75k, you pay $34k!!!
Low rehab… $10k max!
You’ll own this house free and clear in only five
short years! After that… it’s an ATM machine, just
spitting money at you… every single month. And,
every year you own this house, you will garner a
20% return on your investment! Where are you
going to get that kind of return? The bank? The
stock market? Puleeze… only with property. And,
here’s your chance.
This is an absolute steal! The market has shifted and
property values are rising… fast… across the entire
country. Do NOT hesitate on this investment. It won’t
last long. And, by “not long,” I mean like by the time
I finish typing up this ad.
Cash buyers only. Deposit required. Please respond
to make an appointment.
6. Post it on real estate sites like www.biggerpockets.com,
Zillow.com, Trulia.com, Frontdoor.com, Hotpads.com, Yahoo
Real Estate and Cyberhomes.com
You want to use the title to sell it. But, you also want
to use the title to get it to come up on Google searches.
7. Print flyers and pass them out at your local REIA meeting.
Always, always, always get an offer from
your buyers that see the house! Never allow
a buyer to pass with-out making you an
offer. You never know… you may be able to
meet his price. And, if we have to go back
to the seller and renegotiate our purchase
price, we will know what buyers will pay
what.
And, if he says he’s passing, you need to find
out why. After, you need to ask, “If the
price is too high, given what you just told
me, then what would you be willing to
pay?”
In addition, while you have access to a
buyer, take just a few minutes of his time to
find out, exactly, what he is looking for.
Given the opportunity, most rehabbers and
landlords will gladly give you their buying
specs.
It’s only going to save them time and effort
in the future. Buyer questionnaire is
attached. | |
If 10 days go by and you have not had any serious interest… we
need to re-evaluate the deal. It’s possible we may have over-
priced it. Or, it could be that there is something about the
house that we don’t know. One of my students contracted
on a two-story house, where the owner changed it to a duplex,
with one unit upstairs and one unit downstairs. We found out
later that the owner never had the property zoned from single
family to multi. Our buyer now would have to do this, and this
turned many of them off.
If you evaluate the deal and decide you need to cut your
selling price, for whatever reason, this is the time to do it.
Then…
Repeat steps 1 – 7, either simply updating the price or letting
everyone know the price has been lowered for a quick cash
sale.
Then…
8. Contact realtors and other wholesalers you know and
see if they have any cash buyers. Always offer a piece
of the deal for their help. For a realtor, 10% of your
profit should be fine. For another wholesaler, you
may need to go higher, or even split the deal. Always
ask him what he wants to bring in a buyer, and then
negotiate off of that.
At this point, you’ve already marketed the property
all over town. So, there is no need asking another
wholesaler to mark up your selling price. Simply cut
him in on the deal. Remember, making $7,500 instead
of $10,000 is a lot better than making zero.
If 20 days have gone by and still no serious interest… you may
want to re-evaluate the deal once again. If you’ve already done
this, and maybe dropped the price to its lowest, there is one more option:
9. Send a yellow letter to cash buyers.
I can pull a list of cash buyers by county, city or zip from Freedom-
Soft. Or, you can use this site:
http://findcompsnow.com/index.php
Last I checked, it was free. Use click2mail.com to compose a yellow
postcard. Here is an example of what the letter should say:
Dear (name),
I see you purchased 123 main st recently. I have a home nearby
that you HAVE to check out. We’re talking 50% of market price… AND…
26% NET Annual ROI!!!
This is a landlord’s dream. And, no rehab necessary… the tenants are
already in place. In less than four short years… it’s an ATM machine…
spitting pure profit at you every month!
This money-makin’ beauty won’t last long.
Please call me as soon as possible to see it.
Name
number
Email Address
(link to site where they can see pictures and get specs)
If 27 days have gone by and still no interest… there is a pretty
good chance it’s not going to sell… not at this price, anyway.
Something is wrong. It’s either too expensive (most common),
too big a rehab (2nd most common) or something else that is
keeping buyers away.
At this point, your options are:
1. Go back to the seller and negotiate a lower purchase price.
If you’ve determined your offer is too high, for whatever,
reason, you can go back to the seller and present your case.
Mr. Seller, my inspectors have determined that it is going
to cost double my estimate to repair and upgrade. Listen,
I want to buy this house. But, my business partner,
who funds my deals, will not finance this deal at this price.
But, if you can sell me the house at $___, we have a deal.
If he takes it, great. Get a new contract signed (best option)
and rip up the old one. Or, just revise the current contract,
both yours and the seller’s.
Or…
2. Cancel the contract due to a failed inspection.
If you’ve determined that this is just not going to work, you
can send the attached cancelation letter to the seller. It states
that you are canceling due to a failed inspection. Our purchase
contract gives us this right.
Send it and move on. And, if you’ve put down any earnest
money with the title company, send them a copy of the letter
and get your money back.
Here is a great article on why wholesale houses don’t sell.
If yours didn’t, this article will tell you why…
9 Reasons You Couldn’t Find A Buyer For Your Wholesale Deal
Talk to you soon,
Jason Lucchesi and Matt AndrewsCreators, www.GetOnTheInside.com
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