Real Estate Wholesale – myEmpirePRO

As simple as real estate wholesale is, it is not easy. But that’s why our competition in the business when it come actual doers are very low.

“3” Step by Step Guide to Real Estate Wholesale Business

STEP 1 – Find a deeply discounted property using mass media marketing.

This is primarily and marketing.

With every marketing, you need to have a target market.

The only way it will make sense for any one to sell their property at a 35% or more discount less the estimated cost of repair is be in some kind of distress.

May be they owe much more than the property is worth in mortgages.
They lost their job.
Property needs a lot of repair in other to sell at full retail value.
and etc.

Distressed home owners are the target market for real estate investors and wholesaling professionals.

Simply subscribe to services that offer list of potential distressed home owners such as preforeclosures, vacant properties, out-of-state owners etc, download the list of properties and contact the owners offering to purchase their properties.

You can contact them by mailing directly to them or by phone…

In which case you will need to skip trace the data for phone numbers. This is cold calling.

Either you are contacting them by mail or phone, marketing skills and phone conversation (possibly sale skills) may be required.

STEP 2 – Lock it under a purchase contract

Once a home owner agrees to a steep discounted price, the next step is to have them agree in black and white via a simple real estate sales contract.

You can use our calculators at DealEstimator.com to generate an offer.

Once they sign the contract, you now have rights to piece of document worth thousands of dollars that you can sell in exchange for an assignment fee.

The highest I’ve made on this type of deal is $82,000 on one single deal.

I average about $20,000 – $25,000 on each one and I have also made as low as $1,000 on a single deal.

STEP 3 – Sell or assign the equitable interest in the contract to an end buyer or investor.

This is also a marketing activity that involves marketing a locked contract to end cash buyers.

In this step, I recommend investing time in mastering list building and list monetization skills.

It will allow you to make money with or without closing deals.

But by the very idea of owning a growing list and already making money from it, you will multiply your chances…

…of not just closing your own deals but other people’s deals for joint venture profits.

The return on investment of your resources will basically go through the roof with this simple hack.

Have you checked out www.DealEstimator.com ?

With that being said, let me introduce you to smart wholesaling.

The 3 steps I shared with you above are the traditional real estate wholesale steps.

But just like many things 2000&digital, traditional methods will cost you more in the long run.

As entrepreneurs, we are always required to be innovative in order to maintain a competitive advantage in a saturated marketplace.

Is real estate wholesale saturated?

Well there are 500 new wholesalers joining the game in any market in any given day; Thanks to YouTube University.

If you are actively cold calling, you would have encountered a prospect who told you that you were the 10th caller for the same property that same day.

In the same token, you would have seen stack of letters in a person’s house if you are actively sending direct mail to the lists.

So do you think real estate wholesale is saturated?

The better question is “are people still closing deals?”

Yes they are closing deals but the real (for real) question is whether they are going broke doing it.

The other day, I exchanged text messages with a friend of mine in the profession.

Check it out.

“I stopped all marketing. Focusing on JVs and buying myself this year

Sick of wasting thousands and thousands of dollars a month. Need a break haha.”

That’s the reality.

The smart ones are changing strategies but some suckers are still falling for things like “driving for dollars.”

Basically, gurus are teaching them to drive around town collecting data hoping that one day they will close a deal.

Actually, some less than 0.01% do get lucky.

But as you and I know, luck and hope are terrible marketing and business strategies.

The truth is that, they can access the same data multiplied by 1,000 at less than $20 bucks.

Basically, they are hustling backwards.

So let me share a digital age hack with you for the business….

First of all, step 1 and 2 as shared above which is 80% of the traditional hustle is to be skipped.

There are many deals already being captured by other real estate wholesalers that you can leverage.

Majority of them have trouble disposing these deals because the few cash buyers in their marketplace claim they are bad deals.

If you have any experience in this game, you know that the shakers of the game don’t depend on old money cash buyers.

The fact that these old money cash buyers are very few slows down the speed of deals.

It also reduces average price across board (demand and supply/basic economics.)

They simply can’t buy everything especially now that 500 new wholesalers are joining your market daily to target your same seller leads.

So the key to the game of real estate wholesale as we move forward is to lead with value mindset.

Ask yourself…

In a competitive and saturated market of a bunch of wholesalers, how can you (especially as a newbie) bring value to the game without losing money.

Well, you will lose money eventually if you keep targeting the same people that an increasing number of wholesalers are targeting.

You can close deals but when you do the math, are you bringing in a healthy profit margin in a sustainable way?

What if you can skip all the hustle, time, money and energy that comes with generating seller leads while investing just 1/10th of that resources in closing 10 times more other people deals in joint venture?

That’s what smart wholesaling is.

Your focus then becomes…

(1) List Building (potential buyers)
(2) List Monetization
(3) Deal disposition

When you help the marketplace generate more buyers, increased demand will also result in higher prices and more money.

That’s how you bring value to a marketplace.

Click here for the next step.

Frequently Asked Questions (FAQ on Real Estate Wholesale)

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