The 3 Main Things You Need To Know Before Getting Started In Real Estate
This is part 1 of a 3-part series on how to find motivated sellers, control and profit from a single family investment property wholesaling it to another investor.
Part 1 – [You are here] – Case Study – How I Acquired 140 Motivated Sellers In 3 Days And Made $40,000 In One Week
So here’s a question for you…
What if you could make 5 figure checks flipping properties you don’t own?
Yes, I said that you don’t physically own. Seems too good to be true right huh?
Now not only is it possible, but I’ve been teaching this creative strategy since 2010.
Ever since the crash of the market in 2007-2008 despite the recession, I’ve been able to make a very comfortable living flipping houses. As a matter a fact, it’s been more than comfortable. This is what led me to quit my job in 2010.
When most people hear the word real estate investing. They think you need capital, or good credit, and you have to buy the property, fix it up, then list it to find a buyer in order to profit.
Myth #1- You can’t flip properties you don’t own, because it’s against the law.
This is a common thing I hear from most newbie investors, looking to get into real estate investing. The thing is “Wholesaling” is total legal. I have students all across the country doing it day in and day out.
You need the right education, with the right documentation, and you can start profiting today. This is what I teach in my Flip Your First Deal Training
The Key To Making Quick Profits
Is Finding #1 someone who has a motivation to sell. Meaning they’re just not looking to get the highest and best offer. They’re in a situation they need money, and need it NOW. Right now in today’s market finding motivated sellers, is the first thing you need to do. You may have heard people say find cash buyers first. However since we have transitioned from a Buyers market to a sellers market. We’ve created a huge demand for supply. Meaning their are 1000’s of buyers looking for more deals. So if you have a good deal, you’ll have tons of cash buyers by simply posting ads on Craigslist. You job is to find deals, that your competition isn’t going after. So you can forget the days of going on MLS to try to find inventory. Your competition already knows how to find deals on their. I was on the MLS the other day and literally their was a property which had 48 offers on it. Everyone was bidding on the same property driving the price up.
So Where Do You Find Real Motivated Sellers?
Because their is an art to finding motivated sellers, you need to understand marketing. Marketing is the lifeline of any Real Estate business. You must first bring in leads, sift through them leads, find which ones are motivated and offer them a quick cash offer.
For time sake I’ll show you why marketing via direct mail is one of the best strategies to generate a boatload of leads in as little as 3 days. With the clutter of online ads, social media, and other things. Getting into the mailbox directly with your marketing letter or postcard still works the best today to generate leads.
You just need to target the right potential motivated seller. This is why we mail to homeowners who have vacant properties, and don’t have a underlying mortgage on the property. Before you would have to drive all around to find these vacant homes. Because list brokers like Melissa Data or Listsource don’t have this type of data. However, now you can access your own absentee owner free and clear list of vacant homes in your area through our database.
(NOTE: These type of leads you can get access to, are in our database of nationwide free & clear vacant seller leads)
Now after you’re getting leads and you find the ones who are motivated you need to put the deal under contract. Don’t worry we will cover this in part 2. You also need to know the condition of the property before you make the offer. Also in what type of shape the property is in currently? Also how long has it been vacant? (if applicable)
Here is a video of some of the things you need to look for when viewing a property.
When talking with homeowners, a lot of time s they will tell you, “It’s in perfect shape, and it doesn’t need any work.” Lol I laugh because 8 times out of 10 the property looks nothing like they say it does. The key to having a good deal, is knowing what properties are selling for in that area, and how much the subject property is worth in it’s current addition. You can’t just take simple websites information like Zillow. Because sometimes you’ll run into problems like this.
In part 2 I’ll share what to say and how to present the offer to the seller. Go back to the top of this post, and click the link to read part 2.
Leave me a comment with any questions and let me know what you think!