Not sure what wholesaling is? Assignment vs Double Close? Watch the videos and read below for some helpful info and strategies!
What is Wholesaling? (0-4:00)
2. Assignment of a Contract vs. Double Close (7:15 -10:50)
3. Consequences of Wholesaling - Angry Seller’s; your value of a Wholesaler; and How to Avoid It (3:50-18:17)
Did you lay a foundation? - Make sure the seller knows that you are making money off of this deal. We don’t need to lie.
Are we taking advantage or helping? At the end of the day, are you helping this person sell a difficult house to sell or did you deceive trying to make the most money? This is the question we need to ask on every deal.
Will the seller still be mad? We need go ahead and double close if the seller is likely to still get mad that you are getting a profit.
4. METHODS TO FINDING LEADS
The MLS is the collection of all deals currently being sold by real estate agents. Although it can be difficult to find deals because of the competition, it is possible. Keep in mind, it can be difficult to wholesale a bank foreclosed home, but not impossible. The best part about wholesaling an MLS deal is the ability to still use a real estate agent to make it happen.
B) Driving for Dollars
Driving for Dollars is the practice of getting in your car and driving around looking for potential deals. Typically, your goal is to look for properties that are “distressed.” This could be indicated by long grass, boarded up windows, tarps on the roof, legal notices on the windows, or anything else that makes the home appear to be someone’s problem.
Read this article for further advice on this method.
C) Direct Mail
Direct Mail is the art and science of sending out targeted pieces of mail to potential motivated sellers. You can purchase lists of potential leads from companies like ListSource.com or MellisaData.com for pennies per name and send the postcards, yellow letters, typed letters, and more. Your goal with direct mail is to get a certain percentage of people to call you and to get a certain percentage of those to sell you their home.
For example, you might send 1,000 pieces of mail, get 3.3% of those people to call you (30 phone calls) and get 3.3% of those to sell you their home, resulting in one sale. It might cost you $1,000 to send those letters, but if you can make $5k, $10k, or $20k on that investment, it might be a great use of funds.
There are a lot of other methods to find good deals that I don’t have time to cover. Things like Craigslist, billboards, online marketing, SEO, networking, co-wholesaling, and more. If you want to learn more about these, just search BiggerPockets, and you’ll likely find numerous articles on each topic.