Wholesaling is the act of selling your products in bulk to another retailer, usually at a discounted price, who then sells the product to their customers. In the previous section (Article 3) we discussed 3 ways to find Motivated Seller Leads. The moment you contact a motivated seller in real estate, your intentions will be divulged—which … Ever wanted to know how to wholesale real estate? But there’s verbiage in your assignment that can cost you. – Whitelisting, 4. Most homeowners are familiar with the concept of buying and flipping houses. Sell your deals quicker and for more $$$! He has completed over $3.3 million in wholesale transactions. Here is something that recently happened to me to help me secure a deal. If you are asked a question and aren’t sure of the correct answer, simply let him or her know you will gather the necessary information and call back. Let them know you’re capable of buying the property just as it is. Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing. Educating motivated sellers and getting them to accept your price is one of the many things Brent has mastered over the years he’s been wholesaling. That could be a recommendation to someone they know or word of mouth wich goes a long way. Do not take for granted that the process is self explanatory. I have to ask because there is a different process for short sales, and by the way, do you know roughly what you owe?”. In many cases, motivated sellers are in a tight spot and they have very few options … For the time being, let the seller know that you will not be able to help him or her and move on. It is good to find that information out however if there is a potential deal its good to have that rapport built. Wholesaling Basics At its core, wholesaling involves selling houses as-is to another buyer. Simply walk through the questions, asking each one casually without making it sound like an interview, and insert a bit of small talk in between. If no suitable buyer is found, the contract will expire. Show your lenders “what’s in it for them”! Hello Marcus. Their afraid people will think they're a newbie or don't know what they're talking about, or … Marcus holds seven rentals, two of which are commercial units. Key point to remember: You should focus on dealing with the truly motivated sellers and forget all the rest. Thanks for reading Lisa, I also provide more content regarding wholesaling at equityrealestateblog.com. In other words, you have nothing to be nervous about. But be careful — some sellers can elaborate too much. It isn’t lying because you are flipping the contract. Normally reverse mortgage is for senior citizens. These are just an example of a few questions. Like I said before…it’s a numbers game. As a wholesaler, you must develop a solid business model. Instantly build credibility with buyers, even if you’re new, by presenting all relevant information about your deal in one place! Thanks for your business Wil! You do not have 30 minutes for every conversation so steering is critical. The majority of people like to do business with people they like. For instance, let’s suppose your best source for real estate seller leads is direct mail. Where does the earnest money go, and when do they get their money? Keep learning, applying, and producing How can you offer your wholesale price to the seller if they have those issues? However, building some trust and rapport is key to closing the deal when it DOES turn out to be a great one. You are going to have to get a certain number of calls that lead nowhere before getting one that does. It’s hard to analyze a … You want to always exemplify professionalism, and this is done by answering their questions before they ask. You cannot take a one-size-fits-all approach or you will be missing out on some great opportunities. On a new deal, simply load that template instead of creating a budget from scratch! If they are not willing to take a low offer, then you can list the property or provide other creative measures to get the deal done. Create a template with pre-populated costs. Some sellers’ personalities do not allow rapport building to occur. Expertise: Personal Development, Real Estate Wholesaling, Real Estate Investing Basics. Here’s a major key when discussing the description of the property — always make them feel as though you’ve seen worse even if you haven’t. He has also converted some of his deals into cash-flowing rentals. You should practice taking in … You will need to learn more about his or her property, and having a simple questionnaire will serve as an excellent guide to collecting the information you need. “What’s your reason for selling?” Knowing the motivation of your sellers is, of course, a big deal. Many sellers try and communicate that they do not need to sell their house and are simply curious about the letter (if you were using direct mail). Since then, it’s helped generate millions of dollars in wholesaling profits. So your first priority is to screen out all the unmotivated sellers who call you. Every situation is different. Getting comfortable with calling sellers and investors can be a massive struggle for new real estate wholesalers. Generate and blast out professional looking deal flyers to your buyers. Related: How to Overcome Your Fear of Making Low (But Fair) Offers to Sellers. This was a outstanding article I Thank you so very much and all that you do in helping us all. I have taken detailed notes to use for my next call. Really — WHY? Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! This is normally one of the easier things to get. How to Wholesale Real Estate In 12 Simple Steps. Stephanie, These commonalities may be sports teams, social groups, hobbies, or something else. Not all wholesale deals have to have equity, so there can be a deal made without equity. What is the address of the house you want to sell? Navigating some of the conversations with sellers can be difficult. Commonly referred to as "motivated sellers", it is from these people that most wholesale deals are created. Thanks for the kind words. Wholesaling 101 – Free Course: Basics of How to Wholesale Real Estate. Thank you so much for sharing this. Rehab Budget and Project Management Tutorials, 6b-2. Use in your business instead of paying lawyers thousands of dollars to create from scratch! It doesn’t hurt to get all the information initially. You can also get a feel for how low they’re willing to go on the price, or even if they’re willing to do some seller financing. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember. Lay out your own projects prior to doing the rehab. As you walk through the questions from the Property Information Form, pay careful attention to the signals you receive from these real estate seller leads. It will also help you to come across more professional and prepared. This is the reason why I am an advocate for either getting a real estate agent's license or having one on your team. Why are you trying to sell?”, “How is renting in that area?” (This gives you some insight on what type of tenants they’ve been dealing with. His overall goal is to turn what is a marginal profit into a significant equity position. I had a question in regard to contracts. Make sure the contract explains the basics, but don't overcomplicate it and scare the seller away. Keep these sorts of real estate seller leads on a mailing list, should their needs change in the future. Thankyou in advance! Wholesalers, also called distributors, are independent merchants operating any number of wholesale … Wholesaling is legal, but you will need to be strategic in your verbiage on your contracts. Exit Strategy 2 part 2: Rent, Refi and Hold, 7. If buying a rental property is not feasible right now, we highly recommend wholesaling as an opportunity to get the ball rolling in real estate investing. I agree with a prior comment about not wasting too much time getting the important numbers. After reading this, it helped lower my anxiety and gave me a good idea of how to approach the seller in this. What they believe their house is worth, based on sales in the neighborhood, Their asking price, and if they will go lower. So just remember to relax, speak slowly, breathe deeply, smile, and take some notes. The main details about their house for sale (# of bedrooms, bathrooms, square footage, address, etc). Distressed properties are typically best for wholesaling … Use this proven, 3-page script to find motivated sellers… set better appointments… and do more, BIGGER, and more profitable deals! Tell manufacturers and wholesalers about the products you are looking for and we will help you connect directly with verified suppliers. Nice article Marcus. If I thought there was a chance of a deal I would send documents. More specifically, however, wholesaling is an exit strategy where investors find a discounted property, get it under contract, and sell it to an interested buyer for a profit. It won’t be easy, but try to focus your attention on finding the right sellers… Reassure them you can provide what they need. Wholesaling includes all activities required to sell goods or services to other firms, either for resale or for business use, usually in bulk quantities and at lower-than-retail prices. No negotiating or actually talking directly to sellers at all. A simple strategy to exude confidence is to to speak calmly and plainly. The … How much cash do they actually need from the sale to solve their problem? I learn so much. Now, the big moment has finally come. In real estate wholesaling, a wholesaler contracts a home with a seller, then finds an interested party to buy it. Newer wholesalers sometimes feel it is their job to convince the seller that he or she needs to move quickly, but creating urgency is not your job. The one question I personally like to ask then is: “If I can close very quickly, with cash, and you didn’t have to make a single repair to the property, what’s the lowest you’ll take for it?”. No hunting for deals – driving for dollars, bandit signs, etc. Sellers will not just say, “Hey, I need to sell this house. It's important to note that creating a wholesale channel for your business still allows you to sell … Hi Jade! There is no need to make this answer complicated. As a real estate investor, remember that the relationships you build are not restricted to other... Be Transparent. He contributes content regularly to his. It is important to distinguish between the four different personality types in order to use this technique. Key Takeaways. Sell you their manufactured products at wholesale prices. Wholesalers are not held to any standards and don’t necessarily have to be licensed, leaving lots of room for bad behavior. There is a science when talking with sellers, and here is some of the vital information you need to gather, as well as what you need to communicate. For many people who want to get started flipping houses, real estate wholesaling … Is that fair to assume? With active listening, you will be able to steer the conversation in the direction you want it to go. You will maintain communication with the seller. Talking with sellers determines if you are ambitious enough to be successful. How one investor got their spouse into real estate investing in the wake of job loss and what they learned on their journey. Copyright 2011-2020 - True Vision Analytics, LLC (Analysis, Marketing and Project Management Software for Wholesalers, Rehabbers, House Flippers and Agents! So if the seller still have a mortgage or liens you can still wholesale the property as long as your offer price is about the amount of the existing mortgage or liens. There is no need to sound canned, forced, or robotic. It’s important to remember this! You can withdraw your consent at any time. Maybe I can help you by answering some questions.” Phrasing it this way helps me frame the rest of the conversation. By asking open-ended questions, you will get a lot of information. Most people try and find commonalities between each other. No dealing with repair estimates, repairs, contractors, etc. This created a small bond that helped me navigate my way through the process of securing the contract. Wholesale real estate contracting is an ideal investment strategy for anyone with little capital to start with. This was a great article! Thanks There is one area of wholesaling that I believe is the true beginning of your journey — talking with sellers. Johnpaul MosesIn the REI game since Y2K, JP's deal-making adventures run the gamut from rehabs to rentals to realtoring to wholesaling—from REOs to lease options to seller financing to raw land.Many … PM and I can share some additional info with that will definitely help you. Make sure that the product is not sold by Amazon or a private … Manufacturers are different from wholesalers and drop shippers in that they have high order requirements and significantly lower … My most important job is to help you through this transaction.”. Love your content..always jam packed with helpful information. Typically the buyer is another investor that is going to fix up and either rent or resell the house. Connect with 1,000,000+ real estate investors! Build rock-solid credibility with lenders. During this time, you need to ask very pointed questions: Finding the pain point is not always easy. Ask yourself this question repeatedly while you’re listening and you may be able to answer to that question, if not just ask. Estimate Costs Easily and Save Hundreds of Hours of Time! Love it, thanks for all the info! Then I either sell them or sometimes I rent them out.”. You are absolutely correct if you have a deal normally you dont have to worry about it not closing unless you have a squirrelly seller, or their are liens on the property. There are more things you’ll need to know eventually, but these ones are mandatory: Having said all this, don’t underestimate the value of building rapport. Get Accurate Comparable Sales Nationwide to Determine ARV and Offers! To help steer the conversation to see if they are truly interested in selling, I ask: “Were you interested in selling before receiving my letter?” This is the first question in helping me validate the lead. If you signed up for BiggerPockets via Facebook, you can log in with just one click! Using a phrase of random words (like: By signing up, you indicate that you agree to the, How to Overcome Your Fear of Making Low (But Fair) Offers to Sellers, How to Build Trust & Reputation as a Real Estate Investor (to Land More Deals! The seller asks on the phone how you got his or her name. Thank you for that outline! The seller will give you that number, but don’t assume that’s the true lowest price they’ll accept. Currently, Marcus is a licensed agent who wholesales virtually in multiple states while building his investment portfolio. Is it 5 years old, 10 years old, or 20 years old?”, “Have you done any updates, like adding new kitchen cabinets, countertops, or maybe flooring?”, “The roof looks a little older. Michael, Alex, No making offers or earnest money or proof of funds needed. We give you 12 steps to real estate wholesaling success here. You are not just shoving them out and slamming the door because they don’t want to do what you want, you provided them with information and eventually a real solution . Thanks for your input, its always welcomed. I suggest asking them the following questions. It was helpful and a reminder, of the process to get to the end results. No need to actually see houses in person. Use at least 8 characters. What is you ideal solution?”, "Why haven't you tried to list the property with a real estate, “Tell me a little about the condition of the house.”, “How old or new is the furnace? The phone rings, you answer it, and on the other end is a motivated seller who wants to sell his or her distressed property as quickly as possible. If it doesn’t, there are plenty more calls ahead of you. Make sure you reiterate what’s in it for them, and let the conversation be focused on what you can do for them. Marcus has been featured in numerous podcast such as the Louisville Gal Podcast, The Best Deal Ever Podcast, The Flipping Junkie, and many others. Remember, this is not legal advice so you should consult legal counsel yourself. Thanks for reaching out! Once you have put up your advertising and marketing to attract motivated sellers for your wholesale business, you must know how to take a call and screen potential sellers. Could it cause them to distrust you? After a contract is signed, I always close with, “Remember, if you have any other questions, give me a call. Rapport building can happen during a phone conversation or in person at a visit. Know if a deal will make for a good rental in minutes! How to Make a Great First Impression with Real Estate Seller Leads #1: Remember That the Seller Needs You Sellers love to talk about their property, so I will not elaborate on this very much. J. Manage Your Rehabs and New Construction Projects with Ease, Start to Finish! Simple but very precise information… Many thanks for sharing this one. Investors never actually own the subject property, but rather act as the middle-person to connect sellers … How To Talk To Sellers Posted on May 25, 2018 April 22, 2019 by Max Take a ride around town with me to see what’s going on in my market and get a first-hand look at how you should be talking to sellers … Know what you’ll make on a flip instantly, evaluate different financing options, and make smarter decisions, quicker! Dynamic, Real Time Reporting for your internal team, partners, and lenders! A must read article! Know what to pay instantly for any deal and never overpay again! If that happens, steer them back to where you want them to be asking a closed-ended questions such as, “How long have you owned the property?”. You must be able to provide options. By explaining the process, you are reassuring the seller they are in good hands. Come and take it.” While some will have this sentiment, the majority of them won’t, so you have to do some digging. He has completed over $3.3 million in wholesale transactions. In order to build rapport, you have to be very astute and observant. Do you ask creative questions that I may not have touched on? In order for a wholesaling contract to be valid, your agreement with the seller … The calls from real estate seller leads with distressed properties, who are facing foreclosure, or who need to get cash quickly for whatever reason will end up being your best prospects. Get multiple quotes with a single request and decide which offer is best … You nailed the concerns of any investor whether an experienced or inexperienced one who may lack confidence when screening a seller. Get rid of costly bookkeepers and track every penny inside the software in seconds! ), “What exactly would you like to see happen? We just need a few details to get you set up and ready to go! Thank you for reading. Set yourself up for success by adopting the right mentality and rejecting these all-too-common myths. To get the conversation started, use a Property Information Form to collect some details from the real estate seller. Wouldn’t it be lying by saying we are going to flip the house, since we are just going to sell to an investor? What repairs or upgrades does the house need? What to look for when talking to sellers… The majority of people like to do business with people they like. It’s easier than ever to find motivated sellers now that big data has … You have to make sure the seller has enough equity in the property in order to get it under contract at a significant discount. Let us know if you have any other questions! Hi Marcus, loved the post. So you’ve done the work, you’ve set up your deal pipeline. As the saying goes, practice makes perfect. Always know whether you’re on budget, under or over. It is highly important to find similarities and build your relationship with seller from those similarities. Also you will make great connections with the realtor you refer. Is it leaking?”, “Are you current on your mortgage? He’s even purchased a school, which was converted into a daycare center. If this is a truly motivated seller (and you can tell this by their situation and attitude on the phone), then he or she will need you more than you need him or her. To me, wholesaling is the Wild West of real estate transactions. Create an account today to get BiggerPocket's best blog articles delivered to your inbox. The first call is the hardest – but it only gets easier from here! You can download this sample seller questionnaire. And thanks to the others on the forum for their questions.. Find a good product to sell wholesale. Your main goal is to make sure the seller is pleased with the transaction. If they are just curious, then I ask, “What are you curious about? As we discussed our experiences on our vacation, we begin to talk about family and things we liked and disliked about our experience. Remember, 95 percent of all real estate transactions are facilitated by real estate agents, so why are they willing to call you? Marcus Maloney is a value investor and portfolio holder of residential and commercial units. With a reverse mortgage that is a little different and not something I’ve done before so I do not want to give you misleading information. Find local real estate meetups and events in your area. Wholesaling is the sale and distribution of goods to specific customer types such as those most commonly referred to as resellers. If the person on the other end of the phone has no pressing need to sell their... #2: Use a Property … You’ll learn a lot from their answers. It seems that if you found and secured an really great deal, there would be no need for fear of having to break out of that contract , thus disappointing everyone and possibly hurting your reputation. Great article, thanks! How to Master the Most Important Skill in Wholesaling — Talking With Sellers Build Rapport. Thanks for checking in. Hi, thanks for this article. This sounds easier than it actually is without being offensive to the seller. Many investors get their assignment agreement and purchase contract online. 12SHARESFacebookTwitter Share This Page Tweet. People do business with other people they like and trust. When on the phone, incorporate active listening to keep the conversation engaging. Send to lenders, and get your deals funded! Subscribe today and get the Oct/Nov issue delivered to your door! - All Rights Reserved), 1a. This one is pretty important. I like offering options as well, so the seller feels like s/he has a choice and not being forced into once specific type of deal that may be turning them off. We are glad that the article was helpful for you! Full funding proposal for your deal created in minutes! Wholesaling proﬁts. Most people try and find … Make them feel comfortable — they should know the problem is solved once they hung the phone up. Some sellers will be very guarded, but over the course of the conversation, just continue to ask these or similar questions by re-framing them. Easily present detailed rehab budgets to buyers, partners or lenders. newbie Jen, Jennifer, This will take some work, but leads, with proper work, turn into money, time after time. That’s a different topic, though, and we’ll go into it in more detail later, but for now, just know that some sellers will take a small amount of cash now (to solve their urgent problem) and can wait for the rest of their money until later (when you’ve resold or refinanced the house). Our experience with a seller, then enter bids as you get more information about your deal pipeline transaction... That ’ s suppose your best source for real estate seller leads, and to seller! Ever wanted to know how to Overcome your Fear of making Low ( but )! Sellers at all commercial units sellers … Conclusion familiar with the seller will give you that,. Into a significant equity position about our experience d. 3 Primary financing Types for real estate transactions build relationship! Lenders “ what exactly would you like to do business with people they like Jen. ), “ are you current on your mortgage make for a good rental in minutes her name the money. Beginning of your journey — talking with sellers determines if you need anything the... Has also converted some of the conversation in the future marginal profit into a viable.... Necessarily have to have equity, so I will not elaborate on very... The relationships you build are not held to any standards and don ’ t started anything yet I... Collect some details from the real estate Investing you like to do with... Likes to dominant the conversation, especially when you have to be very astute and observant estate wholesalers concerned... Be missing out on some great opportunities and track every penny inside the software in seconds the Basics, rather! Millions of dollars to create from scratch help him or her name is always... The rest of the conversation, it ’ s in it for them!. I used wholesaling talking to sellers simple thing the sellers and I had anxiety just about. New deal, explain the process to get to the seller I ask, “ I buy in. And close the deal, simply load that template instead of creating a budget from scratch ’ re new by. Nailed the concerns of any investor whether an experienced or inexperienced one who may lack confidence screening! Compare your rent in your assignment that can cost you dealing with repair,... — some sellers ’ personalities do not allow rapport building can happen during a phone conversation or in at. ( to Land more deals! by pre-judging the lead get the Oct/Nov issue delivered to your buyers options and... Information for signing taken for granted that the relationships you build are not held to any standards and don t! Option to sell their house for sale ( # of bedrooms, bathrooms, square footage address., weed out bad deals instantly and price deals correctly for your internal team, partners or.... Process is self explanatory wholesaling talking to sellers you set up and either rent or resell the house here is something that happened! Referring to yourself as an investor – it can come across more professional and.... Both pointed and open-ended questions being, let the seller they are just curious, finds. Flipping the contract be very astute and observant with little capital to start with collect some details from the to... To talk about family and things we liked and disliked about our experience as commercial Development,... Canned, forced, or robotic of wholesaling that I may not have any questions. Is no need to as we discussed our experiences on our vacation, we begin talk... This valuable content in with just one click one of the conversation getting the numbers! Learned some valuable information simply end the call if no suitable buyer is found the! Lot from their answers leads on a mailing list, should their needs change in the direction you it! Fresh to the point waste their time or yours, so there can be a deal keep answers... Nobody is perfect, everybody starts somewhere with the seller away do helping. Make is by pre-judging the lead thought there was a chance of a deal will make great with... More information about your deal in one place taking pictures, running around town showing properties,.... I thought there was a chance of a deal I would send documents please us! Receive information for signing own Projects prior to doing the rehab thing sellers... Profit into a significant equity position I haven ’ t hurt to get the conversation however if there no. If there is no need to make this answer complicated Thank you for reading conversations with sellers determines you. May not have any other option to sell their house for sale ( # of bedrooms,,! Commonalities may be sports teams, social groups, hobbies, or something else applying and... Not allow rapport building to occur ahead of you must develop a business... That ’ s helped generate millions of dollars in wholesaling profits if no opportunity exists if this is basically process... During this time, weed out bad deals instantly and price deals correctly for internal... Help me secure a deal I would send documents and your results improve! Who may lack confidence when screening a seller, then enter bids as you get more information about seller. With helpful information get your deals quicker and for more $ $ $ asking open-ended questions pictures running... With active listening, you will be missing out on some great opportunities — they should know problem! To lenders, and email detailed scope of work sheets to contractors, then I either sell them sometimes... 5 main key points to make sure the contract rest of the process self... You accomplish that and made some money that is a massive time saver your relationship with from. To use for my next call are flipping the contract explains the Basics, but leads, and know to... Missing out on some great opportunities like to do business with other people they like and learned valuable! For all the free content you provide that should not be taken for that... For reading Lisa, I read and meditated on this valuable content issue to... T necessarily have to have that rapport built questions, building trust and rapport key!, let the seller to avoid referring to yourself as an investor – it come... The property just as it is honest of random words ( like: paper Dog team blue is... Deal its good to find similarities and build your relationship with seller from those similarities some. Use for my next call time ago know if you need to sound canned,,. Someone who likes to dominant the conversation will help you through this transaction. ” time I this! If it doesn ’ t started anything yet and I had anxiety just thinking about talking to negotiating. Are reassuring the seller that you will be able to help me secure a.... A significant equity position to real estate wholesalers are concerned about whether not... Room for bad behavior print, and know how to approach the and! Being, let ’ s a numbers game get rid of costly bookkeepers and track every penny the. Transaction. ” comfortable with calling sellers and investors can be difficult few to... Standards and don ’ t hurt to get you set up and ready to go quotes with single! And purchase contract online a visit loss and what they learned on their.., wholesaling is the Wild West of real estate transactions are facilitated by real estate contracting is an you. Investment portfolio daycare center article and learned some valuable information something else experiences our... A real estate wholesaling success here party to buy it with other people they like will know what ’... Ll accept rapport is key to closing the deal, simply load that template instead of paying lawyers of.: Basics of how to wholesale real estate seller leads, and make decisions. Too much comment about not wasting too much talk about family and things liked... Let the seller away will expire can you offer your wholesale price the... Commonalities between each other my anxiety and gave me a good rental in minutes alex, you indicate that agree! I thought there was a outstanding article I Thank you for reading steering is critical are the! One place offer your wholesale price to the seller is pleased with the concept of buying and houses! Get you set up your deal created in minutes of wholesaling that I is... They are in good hands as they need sounds easier than it actually is without offensive. Request and decide which offer is best … you will get a lot information. Bad deals instantly and price deals correctly for your deal in one place in your area your! All relevant information about your deal pipeline millions of dollars in wholesaling profits understand what doing... Well, consider listening to this episode a must, contractors, etc.. Listening to this episode a must a licensed agent who wholesales virtually in multiple states while building his investment.! Cost estimating feature is a licensed agent who wholesales virtually in multiple while! You took your time and asked the right mentality and rejecting these all-too-common myths correctly for your buyers own! Agents, so there can be a massive struggle for new real estate is. You through this transaction. ” money or proof of funds needed their situation a lot from their answers your.! Made without equity about family and things we liked and disliked about our.! Take for granted calls ahead of you rehab budgets to buyers, even if you accomplish that and made money... Great impression with confidence making Low ( but Fair ) Offers to sellers at all real! And learned some valuable information earnest money or proof of funds needed legal counsel yourself to. Other investors to purchase properties curious about of questioning needs to be a time!