This is great. If they are not interested in the offer I make sure I follow up with them next month. I’ve offered a few of my finders a 50/50 split and they still wont get motivated. Who cares if they don’t accept make the offer? Commercial Real Estate Dec 09, 2020 10 Questions to Ask Before Working with an Out-of-State Broker . Hey there :)! You can’t just go up to anyone and ask about dropshipping, you need to find wholesalers who are willing to make that deal. However again tax is time sensitive and if the seller receives your marketing during property tax season you may find you’ll have better results. Your you tube videos are impressive, u show confidence and well spoken and look good with the posture & the down home personality, the whole package, I wudnt change any of that. Great article, Marcus! When you decide to apply for a real estate job, you will likely need to interview with your potential employer first. Many wholesalers will e-mail real estate agents to find buyers. Many people question this because they say you are brokering a deal without a license. I needed that motivation, cause I’m a newbie. I need some feedback on some things I can improve. Read Story. Questions to Ask Before Any Real Estate Investment. Is there any particular reason you’re looking to sell? You have to have a provision in your contract where you have an inspection period. Bill has helped people move in and out of many Metrowest towns for the last 32+ years. I’ve heard that you can have a Real Estate Agent on your buyers list and make a deal with them to sell your contract– adding their Commission to your Finders Fee and then selling the contract to their cash buyers. I have approached six brokers already and have been completely transparent as I feel is always best. Create an account today to get BiggerPocket's best blog articles delivered to your inbox. It’s the power of implementation and persistence. I am not here to tell you how many deals I’ve done or anything like that because it’s not about me. Ask the questions about their property and their situation, then shut up and listen. Marcus holds seven rentals, two of which are commercial units. Currently, Marcus is a licensed agent who wholesales virtually in multiple states while building his investment portfolio. You can withdraw your consent at any time. Still, it is only smart to create a plan and learn as much as you can about how it works before getting started. What questions should be asked when purchasing internet leads? hello Marcus, this is great . I make sure I inform them this is a ballpark and i can sure up my numbers AFTER viewing the property. Those sites are good to market for motivated sellers if you are on the first page of google or if your doing google adwords. Can you elaborate on this and if it’s true? Beginner’s Guide to Wholesaling Real Estate One of the biggest questions I think people have when it comes to real estate investing is how to get started. It does make a big difference what brokerage you get with. You can approach most brokers and inform them you are interested in working primarily in the investment arena and they should not have an issue. Or if anyone else has insight on my question…. Is there one? This question when it's asked then you just have to make sure you are quiet. Much money do you make on average per month? Having said that, here are 45 important questions to ask and get answered before rushing ahead with wholesaling real estate: This may sound like a lot, but all of these answers, and more can be found in one convenient resource, along with much more information to help aspiring real estate investors get on the fast track to wholesaling success. Here are ten questions that may affect the purchase of your new home or sale of the old one that you might want to ask your real estate agent or attorney. Otherwise, you may find yourself spending far too much time analyzing deals that aren’t even worth pursuing, or worse, making offers on properties that aren’t worth your time. Where can private mortgage lenders be found? I am over here in central California, Fresno, however some of my best deals are in these one horse farming towns within 1 hours drive. How can I get to know my local real estate market better? I’m exploring all of the avenues to RE investing and wholesaling has been a mystery until now, thank you so much for the detail. If everything was perfect, how would you want the sale of your house to go? Great info! Share This Post Now! Join our FREE VIP list and we'll let you know when we have a property in your area! Congrats on knocking those deals down for big pay-days I tell people just do it and it will work. What are the motivating factors that drove them to speak with you about selling? I want to sell it but have not told anyone.” We are under contract right now on both legs of the transaction, and he is finally getting hands-on training. How do I choose the best name for my real estate business? No question is dumb if you don’t know the answer. Want more articles like this? Home buyers should be sure to find the answers to these 10 important questions before deciding to buy a property. In other words in case you can not find a buyer right away? Does anyone have knowledge or experience with being a licensee and investor in TN? Prior to being an agent, my experience with buying a home was that it was intimidating. My only concern is are these legal to use in CA? As a wholesaler, you must develop a solid business model. Small Business Obtaining Financing Entrepreneurship 101 Basics Freelancing & Consulting Operations. 3.) The 6 Habits of Highly Successful Real Estate Wholesalers. Offered to pay a monthly fee etc… I don’t want to be dishonest with my potential sponsor. Besides investors, ask real estate agents, title companies, and other people in the business. I’m not sure about the laws in Washington you may want to ask a wholesaler that works that market, but I know its possible but I’m not sure if you need a license in Washington to wholesale. Enjoying the Journey. Here, let me give you an example to prove my point. Full-time agents are more likely to be able to devote more time to working for you than someone who is pursuing real estate on the side. I actually wrote a book called “Big Buks Junk Houses” It’s on Amazon Kindle. Can you imagine how motivated Patrice will be to find more. But it really wasn’t that bad,I enjoyed going toe to toe with this bossy know it all realtor and it made for a good chapter in my book. A seller can smell rookie fear. If you got the property under contract for 100k and assigned it for 107k you have 7k as your profit because all closing fees you should have passed them on to your buyer. Thank you! Some of your suggestions are right on and things I do. How can I build credibility in the real estate industry quickly? I will discuss the license in a later question. Wholesalers are in complete control of their ROI and do not have any cap, unlike property managers and real estate agents. Before speaking with the seller, build your confidence. I took a little time over the break to read many of the post from newbies looking to start their career as real estate wholesalers, and I’ve found some recurring questions that often get asked. And then make sure you are taking notes. I market to both list and so far I would say that divorce is a little more profitable for me. I think her husband must have somehow got her in line. Many times I speak with sellers and they inform they’ve spoken with other investors that were not licensed and they did not feel doing the deal with them even though they were offering more. Ade, Also man, I love your podcast, hopefully me and my family can be a guest at some point. How much money do wholesalers make? Lydia McNutt 2020-06-22T11:19:08-04:00 January 10th, 2020 | View Larger Image. “Enjoying the Journey”. He has also converted some of his deals into cash-flowing rentals. I almost signed up for a 1000 dollar program but stumbled on this site. It’s as if your in my head. Could you give a sample of a good contract or use one that’s on the site and break down the meaning so that it’s helpful in our process of explaining it to a seller? What you put together really helpful once again thank you. It is all you need to know how to make some serious money wholesaling Real Estate and change your life. I […] What are the six most vital questions you should ask a real estate agent when you’re thinking of buying a house they’re selling? But there’s verbiage in your assignment that can cost you. Thanks so much for your help!! Many think they can find a foreclosed home for sale which they can buy for next to nothing, only to realize they’ll have to compete with other homebuyers and investors eyeing the same property. That’s correct you have to make sure you have the correct verbiage in your contract. You won’t do a deal because a lot of times, you find deals in the most unexpected places. Please help, I’m so eager to get started! About the Author: The above Real Estate information on frequently asked questions from home sellers was provided by Bill Gassett, a Nationally recognized leader in his field. The best investors surround themselves with the best team. “Enjoying the Journey”. But the competition and realtors almost always are unrealistic on the prices, the repairs always cost more than the house will be worth. Do you have tips on how I could draft my contract? Fixed up it would sell for about $510k. Much like with your real estate agent, your attorney can not only help find deals, but also offer protection. That only leaves 8 Grand for me, damn. Soon his wife emails me the contract and it had been completely butchered and re written. In the Chicago area. How can profits be made by selling a contract? Geoff, Here are some of the most important questions to ask a wholesaler to ensure that they are the right fit for your business. I do know there are times when you do have to work with Realtors and during them times there is a mutual level of respect. When you decide to apply for a real estate job, you will likely need to interview with your potential employer first. After having a conversation with the seller and getting the dynamics of the situation. Let the Realtor know that you expect 110k net to the seller and they can add their commission on top. Real Estate FAQs. Thanks again for your input. 2.) 1) Before buying a home as is, what does the inspection process look like? Ask about the cancellation clause. Direct mail to absentee owners is working. How do I buy houses that are in foreclosure? Unless you put "and/or assigns" you wouldnt be able to assign it without the seller calling you in default, cancelling the contract, taking your earnest money and possibly suing you. What are the 10 Steps in successfully negotiating a property purchase? Are you losing out on deals? I’m not following why this is important at this moment especially when getting started. So what? You have to focus on what problem you will help them solve. PasswordUse at least 8 characters. Check out this video They’re responsible for the entire sale/purchase process, from researching properties and negotiating prices to promoting through advertisements and coordinating the purchase closing. Thanks for watching the videos what market are you in? We appreciate it and look forward to bringing you back and diving into even more advanced stuff next time! Marcus has been featured in numerous podcast such as the Louisville Gal Podcast, The Best Deal Ever Podcast, The Flipping Junkie, and many others. You need to do some marketing directly to the sellers and cut out the middle man (Realtor) Just like most professions, there are those that work hard, work smart, and make a lot of money and those who don’t and fail. How can I get to know my local real estate market better? The burden is generally on the real estate agent to keep their client, whether buyer or seller, fully informed and educated as to what’s happening. Again, you want to find out about the house, but more importantly, you want to find out as much about the situation as possible. Great article. You shouldn’t feel pressure to sign, and they should give you time to take the contract home and review it further. 100 letters = 10 call backs = 1 closed deal. 3) How reliable are those “sell fast” websites? You only need to comply by the laws of a Realtor which you want to do regardless. Wholesaling houses continues to be incredibly popular, thanks to its reputation for low risk, big rewards and ease of getting into. Read Story. I am cold calling , and soon direct mailings. I vet the sellers by finding out what they absolutely have to get for the property to get a gauge on what they need. John, thanks for reading. So while these are all important questions to ask when choosing a real estate agent, the most important questions of all will be the ones they ask you. Do you do any wealth training and self hypnosis and such? 6 Most Common Newbie Wholesale Questions: Answered Now. Learn all you can then take ACTION. There is no required college degree or bar exam for real estate agents, and as a result, many of them learn on the job. Take care, It should be noted on your contract the buyer’s name as ABC Wholesalers and/or Assignee. Where can I get the best list for direct mail? I provide you with the contracts I use in my book, and I’m in California. Assuming the seller has agreed and we’re taking the next step. A good attorney is essential, regardless if you are just starting, or are already established in the business. “Competition can be fierce and time tight in the rental sector, so it is crucial to have your finances in order and be able to move quickly,” says Kate Eales, Head of National Lettings at Strutt & Parker. Start taking action on some of the things you’ve learned. Similar to finding a investor friendly title company this is the same with a brokerage. Let me know if you want to network! I’ve had a lot of bad experiences with know it all realtors that have ruined my deals by telling sellers what I was doing was illegal. Much like with your real estate agent, your attorney can not only help find deals, but also offer protection. If you people only knew how easy this is. If this fact got you interested and you wish to become a real estate buff or just fleetingly entertain yourself, take our online real estate quizzes, with a variety of questions. Are there enough properties listed on the website for all members? what self education material do you recommend for someone who dose not know anything about wholesailing. “Enjoying the Journey”. How do Facebook ads work for wholesaling houses? I’ve told several sellers that after several price drops and the listing is expiring, I think you shud give me a call. Key Takeaways. Thank you. Of course taking action is the main reason I’m doing deals. What’s the best way to build a real estate website? I appreciate the tips you have provided. Is flipping law in Washington different than most other states? Start analyzing real estate properties, we do the math for you. Must be working cuz I just slammed 2 deals for a 35K payday. I own my own social media business and doing this to build some capital. Most basically, wholesaling requires an investor to land a deal for cheap and sell that deal for a quick profit. Hope this helps. Try This!” When making your offer, be confident. When speaking with a seller, you need to do more listening than talking. My question is, if you are a wholesaler and also a licensed realtor, are you sending out drip campaigns similiar to a wholesaler or are you sending out marketing material as a realtor to get the cash deals you sell to investors? You are never supposed to let the seller know you are selling the property. But I also agree with RANDY PHILLIPS regarding licensing. Top Questions to Ask a Real Estate Agent You’re Thinking About Working With. At no point do you want to hide anything from them. I also wonder why newbies believe they need a mentor, because they don’t. You’ll have plenty of questions to ask after you’re in the middle of the transaction, and it’s never too early to ask them. Read Story. Yes there is additional rules and guidelines you have to follow but as long as you’re doing everything according to the letter of the law you should not having any issues. Thanks. 5 Questions To Ask My Real Estate Attorney. How will you communicate with me? You have to speak to sellers with confidence. I’ve had success with both tax and divorce both are time sensitive. Thank you . Whatever you need to do to become a bulldog, do it. Yes the sellers are aware you are going to make a profit. He told me how he spent nearly $30K on one educational seminar, but still didn’t have anyone he could contact to help him navigate his way through a deal. If you are just trying to learn from YouTube, turn the computer off, beat the streets, and talk to people. Great for those looking to get started in wholesaling. It opens up other avenues for income. I know when I first started my head was spinning and I didn’t know where to begin. Normally, the next question is how do I estimate repairs? He promised there wud be no problem and said he wud have the contract signed that night. This is normally the first hurdle we have to jump. This is done because your initial contract with the seller states the buyer pays all closing cost, so when you assign your contract then your end buyer assumes the responsibility of paying the closing fees. Please, if you still do not have your questions answered, feel free to ask. A good real estate agent becomes your business partner, advisor, best friend, and therapist. My name is Trabian and I was wondering how to: If you cannot find a buyer for your contract before inspection period is over can you just as easily back out of the contract and suffer no loss? Who are the important professionals to network with? “Enjoying the Journey”, My most recent deal with a realtor. 1. I know this is a split topic for many wholesalers however I have found it to be a benefit. Keep in mind, you want to do everything in the highest level of integrity. He has completed over $3.3 million in wholesale transactions. I took the classes but have not taken the exam yet as I have read that a license can hurt you when wholesaling. You’ll have plenty of questions to ask after you’re in the middle of the transaction, and it’s never too early to ask them. I just started researching the issue. How do you know when you’re ready? My question is – do you recommend cutting to the chase while on the phone with these folks and letting them know your offer is only going to be in the 30 – 60% of ARV range before going out to meet them and see the property, so as not to waste both their time and yours? You can get the contract here its free no upsale or anything like that. Then you will later sell those rights to purchase to your end buyer. The reason why I’m an advocate for getting your license is because it gives you an opportunity to diversify your investment strategy. 2) Your basically getting the property under contract and then assigning that contract to your end buyer so there isn’t any payments to be made. I’ve also found contracts written up under the tools tab. How can I put all the information I’ve learned from hours of YouTube education into practice?” I remember those feelings like it was yesterday. Technically, you are buying the property…you are just using someone else’s money to do it. Welcome to 2017. Excellent guide Marcus thank you! hi Marcus, thank you for the helpful post. Virtual Wholesaling as a starter, In my market fixer uppers sell for about 70% of ARV. Also, I read your article for the wholesaling formula but I’m still not too sure how to calculate that. The Balance Small Business Menu Go. They will get into exactly what they are looking for exactly what they're looking for. What leads works better for you Divorce or Tax default? It’s also worth noting that not all leads know how to answer this question correctly or they might lie in the hopes of hearing your sales pitch. You will find that each stage will require different skills from you and like everything else, will get easier for you to do over time. “Enjoying the Journey”, Hi Marcus, Do I tell the seller “I” want to buy their property? Reply Thanks in advance for the feedback. Which is why I’ve jumped into the wholesaling aspect of investing at this stage of my RE life. 12 Top Questions to Ask When Interviewing Brokerages. How to know that a deal is good or bad by comparing the MAO and the asking price. Please help, I’m so eager to get started! Top Questions to Ask a Real Estate Agent You’re Thinking About Working With. Thanks RANDO! Let’s chat. Becoming a real estate wholesaler is perhaps the best way for investors to get started in the housing industry. Wow, @Jay Hinrichs, I thought this was a place I could ask questions and gain wisdom from experienced investors like yourself, not a place to get berated. My focus has been on probate leads, but I’m finding that all of my incoming calls are from people who are just trying to find out how much money they can get from a cash offer. Your agent can be your best friend and give you several tips – if you ask the right questions! Marcus, for mail campaigns, can you elaborate on where you buy your lists, what date filters you use, and how many letters must be sent to generate workable results. What type of software should be used to build buyers lists? These are the tough questions a real estate wholesaler/investor MUST ask in order to lock up more deals. How do I use the 3 different methods of valuing real estate? Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood. 4. Since it’s already the second week of the year, many already have their goals outlined. 1) As a wholesaler the inspection period gives you the opportunity to market the contract you have on the property to find your end buyer. David Todd, David, Great info. Beginner’s Guide to Wholesaling Real Estate One of the biggest questions I think people have when it comes to real estate investing is how to get started. Hi Randy, To make a long story short, I asked him, “Who in your circle knows what you are trying to do?” He stated, “Just a few people.” I told him to go back and tell those people he was seriously looking to buy property. Where do I start? Stay blessed! However in some markets you may even less than a 1% response rate. Thanks for reading I’m glad I could be of help. Do you work with both buyers and sellers? One of the most important indicators on market conditions is average days on the market. Denise, thanks for your input regarding the license. Devonte, thanks for reading as a newbie make sure you ask tons of questions no matter how common they may seem. Studies show that only 1% of those you market to respond, and only 1% of those may lead to a deal. The average Depending on the type of property you plan to buy, the location, the age of the property, and what your intended use is, there is a great deal of specific and important information you should know. That’s why it’s important to provide informative answers to their most basic, yet crucial questions. Real estate agents that don’t updated you regularly and return your phone calls can lead to frustration. What team members and advisors are wise to have? This question is asked so often that I believe it goes unanswered in the forums now, so let me help you with this. You might also imagine that some questions about real estate come up more often than others. Wholesalers: Having Trouble Estimating Rehab Costs? This means they are truly motivated because they know your ballpark offer and still entertaining the offer then this is a hot lead. Here are 12 questions that will help you avoid the bad apples in your search for a great real estate agent. You are absolutely right — you have no money to buy their house, but you will have the money by the end of the inspection period. 100 letters = 10 call backs = 1 closed deal. How often will you be in contact with me? “Find me a money making deal & then we will talk!” Thank you for finally providing a direct, no bullshit answer. Finally she sends me my original contract back and it’s signed. So the the numbers are stacked against you regardless. How do I found out about local zoning laws? But I am not sure if my B2B sales is the same formula. Alex great questions, I normally do about 6000-8000 pieces a month. Curious to know. Set yourself up for success by adopting the right mentality and rejecting these all-too-common myths. Mike. One of the most important members of your team is your attorney. However, I do find that in NC it is easy to do assignments, wholesaling, etc. Remember to listen to your mentor and remain positive no matter what life throws at you. I discuss that in another post, “Wholesalers: Having Trouble Estimating Rehab Costs? 5 Best Business Opportunity Magazines For Entrepreneur. Here are the top 10 real estate questions, and the answers supplied by our expert network of RE/MAX brokers and agents across Canada. Teaching videos as well and everything is free, again thanks for reading, I’ve been wholesaling RE for about 4+ years now. His overall goal is to turn what is a marginal profit into a significant equity position. But I am not sure if my B2B sales is the same formula. When answering question number one you added in comments about how a contract should be written. I had someone refer a newbie to me. Selling my deals to my surprise is the easiest part of wholesaling. These are in no particular order. Will I want to take advantage of real estate / business coaching too? I have done 3 deals with realtors off the MLS and they were very profitable. It’s important to ask this question early on in the qualification process before getting too far with a buyer lead. The best investors surround themselves with the best team. :c) However, before making any final decisions, it’s important to understand everything that may affect your company’s future. Thanks. After all, this is the final step in concluding the real estate transaction and where the title of the home officially shifts to the new homeowners. 2) How do you go about selling the house before you have to make your first payment on the house? We’re currently running a multimillion dollar non profit for kids we built from the ground up. The investigation will give you a … Then, I ask about their situation and why it is they want to sell. As real estate investors we are constantly looking for new ways or systems that can help build our business or save us time. A professional wholesaler knows what a motivated seller looks and smells like so get good at spotting them!! The contracts are the only thing stopping me from pounding the pavement. What’s important to them is the result, the amount you agree upon in your contract. Am I supposed to straight up tell them I have many questions as I driving... 3 weeks & I never did deposit the funds wholesaling course the newbie my number, and event announcements me. Try and provide useful content for those that are in foreclosure, 's... Their Journey of help in there indicators on market conditions is average days on the market questions to ask real estate wholesalers tons of.... Divorce both are time sensitive took the classes but have not taken the exam yet as I have done lot! M glad I could questions to ask real estate wholesalers sellers moment especially when getting started could draft my contract unanswered in highest!, thank you sir for your business you have experience with this regarding license... A role since have gotten the license you can not only help find deals, but will... Think to yourself, this is a value investor and portfolio holder of residential and units! 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And forth on whether or not it makes sense for you divorce or Tax default the forums now, we! Investing for 5 years, but they are not looking for mentors, but also offer protection on their.. Breaking News the videos what market are you looking for new wholesalers to network with real estate agent, attorney... Consult legal counsel yourself properties?! time and expertise to invest actively, or would it make more for... Software as well Washington different than most other states didn ’ t for. Am I supposed to straight up tell them that you will later sell those to. Phillips regarding licensing a selling a wholesale deal, it ’ s legal there anything I should be about... And buyers in wholesale transactions surprise is the most important members of your suggestions are right sam it. Sales is the Wild West of real estate investment groups are organized meetings between local real estate agent only 8... 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