myEmpirePROIn this edition, I share the a simple rinse and repeat wholesaling real estate step by step in 3 simple steps. By the end of watch this video, you will also have access to a free PDF download on how to leverage the internet to build your business.
Click this link to make a donation to support my work:
►►► http://olatux.com/donate
I will also be answering 3 questions with regards to this subject. Meanwhile, here are the 3 main steps for dummies to wholesaling houses and real estate that can add $20,000 – $80,000 to your bottom line every month.
Step One – Find a deal @ 65 cents on a dollar minus repair cost
If all you figured out in the business is the step, you will be in the top 3% of the game. Finding a deal is essentially marketing. You are essentially a marketer and not a real estate person if you make money in this business.
What is a good deal? A good deal is a win-win-win for you and all parties involved including the seller. What you are seeking is a motivated seller with a distressed property in a distressed situation.
This property are typically a liability for the seller and they absolutely must need to get rid of it. Anything short on 100% motivation on the seller’s part results in a dead deal and the rest of the steps in the wholesale won’t work.
You can’t afford to pay more than 65% of the after repair value of the property. Here is a simple example. If a property is worth $100,000 in a solid condition ready for the market, your offer to buy must be $65,000 or less.
If the property need $15,000 of estimated repair, your offer to buy must not exceed $50,000 ($65,000 – $15,000). You need this spread to move the property through the market quickly as a solution to the distressed situation of the motivated seller.
Step Two – Contract the deal
Here is what to do when you find a motivated seller with a distressed property who agrees to your offer. You must put the agreement into writing in a purchase contract. You may be wondering how you are going to find the $50,000 – $65,000.
That’s not your job. That’s the responsibility of the 35% equity that you created in the deal. For now in the very step, your responsibility is to put this deal under a purchase contract.
Do you need a license to wholesale real estate? No you don’t. A license is only needed when you have to represent the public market fiduciary interest. The only interest you are required to protect in wholesaling is equitable and ethical interest.
Step Three – Flip the contract
As I said earlier, the purpose of securing a deal with a 35% equity and/or discount is to find the money to buy it. This is where other people’s money come to play for you. It’s called resourcefulness.
In life and business, it’s not about having the resources. It’s about being resourceful. In wholesaling real estate, you don’t need credit or cash in order to make money. What you need is marketing skills.
When you master marketing, especially digital age and social media marketing, you will be able to wholesaling houses for a living full time and beyond is inevitable. I do however suggest that you build self sustainable business systems around the step one.
All you need it step one which is all about marketing to find deals. Step 2 and 3 are really the responsibility of closing agents and attorneys. That’s why this is a great business model both beginners and savvy investors alike.
You may want to inquire about wholesaling real estate contract assignments in your local state. The best place to find more info about that is at you local real estate investing association (REIA) club. Also, check with a real estate investing friendly attorney.
Questions Answered in the video…
“How do you handle petitioners who don’t have a price but want to sell? They just don’t know how to go about coming up with a price.”
“Would you suggest wholesaling under a LLC or Corp. ???”
“I am getting a 7.5% response rate from yellow letters but the problem is the leads suck. Why?”
If you want to learn how to start wholesaling real estate, start from learning digital age marketing, how to generate free traffic and free leads for life leveraging the internet. You can do that by reserving a seat in my free class at this link:
ABOUT YOUR HOST ::::|
Ola “Tux” Abitogun is the Creator of myEmpirePRO. He became a FULL TIME entrepreneur in October 2006.
He is a computer engineer and an engineering management graduate from New Jersey Institute of Technology; (NJIT) class of 2004/5. He was born in Dallas Texas and raised in Nigeria by his Nigerian parents. He considers himself a proud Nigerian American.
Today, he is a marketing addict, trainer, marketing and business consultant, real estate investor and all around serial entrepreneur. Most importantly, he is husband and father to their 2 Boys. The professional work he is mostly proud of is personally helping 1,000+ entrepreneurs around the world reach greater heights in their careers.
#myEmpirePRO #OLATuxAbitogun #realestatewholesaling