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Wholesale Real Estate

How To Wholesale Real Estate in 7 Easy Steps

Wholesale in real estate is a term you’ve probably heard way too much. Maybe, you’ve heard all the good things about how wholesaling allows making good money with little to no investment. Well, that’s all true! And while it is not rocket science, you certainly should follow these step-by-step instructions to start with the right foot and make money fast!

What is a Wholesaler in Real Estate?

First things first! What is a wholesale in real estate?

It is called wholesale in real estate the process of getting a distressed home under contract for a limited time to then assign it to another buyer.

Your intentions as a property wholesaler are not to fix and flip the property. Instead, you market it for a higher price than the one owners requested in the contract.

This strategy is beneficial for those looking to get into real estate but don’t have the money to do it. You just need to be careful not to fall into legal confusions or tricky contracts.

Success is guaranteed if you follow this next 7-step proven guide to wholesale real estate

Step 1: Find a Property to Wholesale

Wholesale Real Estate Step 1 Find A Property To Wholesale

Not all properties are wholesale material. The key to wholesale is finding properties with under market value. These are typically those needing some repairs, or whose owners need to sell quickly. Distressed homes can be sold for more than what you put it under contract for.  

It is super important to always mention you will pay in cash and buy as it is. The biggest pro about wholesaling real estate is the low investment needed to start. You can find homes to wholesale for free or for inexpensive rates.

How to Find Properties to Wholesale

Let’s talk about the most widely used methods to find the right properties for wholesale.

a.       Real estate wholesale groups and investment groups

When we talk about these groups, we mean organized frequent meetings and social media groups on Meetup, Facebook, or LinkedIn, between real estate professionals and investors of all kinds. They are perfect to create valuable connections with potential lead sources, partners, and mentors. Usually, member receive weekly emails loaded with high-quality information about your area.

This way, you can be up to date regarding what is wholesaling real estate, what properties are available for sale, prices, what neighborhoods are selling better and more. Actually, most of the properties listed in these emails come from desperate sellers that may be interested in your wholesaling alternative. All this data will nurture your property wholesale business.

b.       Websites for Wholesale Real Estate Professionals, Investors, & Flippers

There are several websites you can visit to find some distressed properties to sale. for instance, CraigslistFSBO and HomesByOwner.com are well known among wholesalers. Make sure to apply location filter and use the right keywords to obtain the best results in your research. Phrases like motivated seller, distressed property, fixer upper, sold as is, must sell or estate sale are commonly use for post in this niche.

c.       Hire an Assistant / Property Finder to Wholesale Real Estate

Do you already know what is wholesale real estate “bird dog”? This is the alias used in the industry to name the property finder, a part time worker hired by the wholesaler. He/she doesn’t need any special real estate knowledge, but tons of energy and part-time availability (college students are regularly hired for this) to find good properties by cold calling, scouring neighborhoods, and knocking on doors.

This is a great option to identify great opportunities for property wholesaling that won’t consume your time. The best part is that your assistant will always keep hunting as they are not hourly-paid employees. They receive a fee when a house they found is sold.

d.       Use Bandit Signs

What is a real estate wholesaler? Well, it is the person who puts those bandit signs in the street. You’ve probably seen one, or many doing this!

And yes, this means you need to invest some money to get these signs made and put up, but they are a great way to attract property owners in need of fast cash and doesn’t see putting their home for sale with real estate agencies as an option.

e.       Mails and Flyers

You can hire direct mailing services or purchase online mailing lists to make sure the flyers, postcards and mails you send really get to your distressed seller audience.

f.        Visit Court for Records

You can go to court and request to look at divorce, public tax, and probate court records to identify recently inherited properties and past due homeowners, respectively. They are great candidates to add to your mailing list.

Step 2: Convince the Owner to Sell to you

It is time to make you offer and present your best arguments on why you are the right option to get that sign. Here is how you can do it:

  • Let the owner see why you are not a conventional real estate agent, approach them in a delicate way, earn their trust, and make them feel comfortable before you try to move forward with the transaction.
  • Take the weight off their shoulders.
    • Once you know about the problems driving them to sell their property, tell them about how this decision can alleviate their pains.
    • Make sure to emphasize how the process will imply no stress on them, as you are taking complete care of it (contract, inspections, appraisal, and closing).
    • Also, highlight they won’t have to face any upfront costs.
  • Explain the reasons behind your offer. Let the seller know how the current conditions of the property will require repairs and additional expenses from the future owner, making your offer is totally fair.
  • Get that signature! Find an attorney to create a contract for you or add clauses for each case to a generic purchase contract. Despite wholesaling to an agent is completely legal, clients don’t feel ok about agents making a profit from their property right away. Therefore, agents usually assign the property to a partner.

Step 3: Build you Wholesale Dream Team

Wholesale Real Estate Takes Persistence and dedication.  Contract learning is key

If you decide to dedicate yourself to the property wholesale industry, you better get your team built to save time and money in the long run. You will need:

  • An appraiser: this member will make sure the price you are paying will give you room enough to make profit later. Also, an experience buyer would request an appraisal before placing their offer.
  • A title company: when looking for a title company, there are two important thing to take care of: first, is being crystal clear about your wholesale intentions and second, make sure the title company if they deal with assigned contract. This partner will help you run a title search and check there are no liens on the property you are negotiating.
  • A reliable contractor: despite you’re not going to deal with any repairs when wholesaling, this team member is vital. A contractor can go with you and check the property out to define its real conditions. This way you can show future buyer an idea of the potential repairs or renovations needed and back your price.

Step 4: Determine Potential Renovation Needs

To continue with the previous idea, you must assess the renovations needed in the property you plan to wholesale. These costs are a determining factor when defining your cut in the deal. If the house has a great potential after few renovations, this allow the investor to get more money for the property, and so do you.

The greatest part is that you already have the ideas and budget you contractor gave you. This gives you the back up you need when presenting your option to investors. Let them know about the potential of the property. Use this as a negotiating tool to increase your benefit.

Step 5: Find a Buyer to Buy You Wholesale Real Estate Properties

As this is not a regular real estate transaction, you are not going to look for a regular buyer. When wholesaling, you must look for someone interested in buying a cheap property and make the repairs and renovations needed. These commonly are investors or contractors. They know better what to do with a property to turn it into a dream, higher-value place.

You need to find the right buyer the fastest possible to meet the settlement date in the contract. Experienced wholesalers already have a list of potential buyers. If you’re new to this game, you can start building your database (CRM) repeating processes from the previous steps, including:

  • Using wholesale websites to advertise your property.
  • Send flyers with property info around the neighborhood
  • Email investors you meet and group meetings, networking events, and social media groups about your property.

Step 6: Negotiation, a Critical Moment

This is probably the most expected step in the process, the moment of truth when you get to know what your profit will be. The difference between the wholesale price and the price under contract (plus all costs incurred to buy it and sell it) will determine your profit.

Make Sure This is a Good Deal for You

  • As you did with the seller, you must now convince your buyer of the value you propose. For this, make sure you use your contractor’s estimates to show the potential the property has.
  • The buyer must make a good faith deposit to the wholesaler or the title company and held in escrow until the property goes to settlement.
  • Make sure your price also covers all the expenses you made to carry out this deal (team fees, marketing, even gas).
  • In general, we talk about a good deal when profit is $2000 and above. If you think you can’t make that much, better consider not to take it.  

Step 7: The Closing

The closing is a ceremony celebrated at the title company office, on the date set in both contracts. In this meeting, the deed is transfer to the new owner, who also receives the keys of their just-purchased property. Closing costs are buyer and seller responsibility.

This final step is the reason why you must choose an investor-friendly title company, to keep all partied satisfied with the wholesale deal. Depends to state legislation whether each assignment is considered or not two separate transactions and taxes charged.

Wholesale Realestate FAQ

If you already know what is wholesale in real estate, but still have some doubts, find the answer to the most frequently asked questions below.

Who is Real Estate Wholesale Right for?

Wholesaling properties is perfect for several people, including those who:

  • Want to get into real estate and don’t have the money to begin. This is because no real estate license or education is required to start.
  • Can use their excellent negotiation skills
  • Have a good eye to find distressed properties
  • Have a good eye to find motivated sellers
  • Can get familiar with contracts and possible modifications fast

This area may be time consuming, but you can tell from your rewards when you’re doing wholesales the right way.

Is It Legal to Wholesale Real Estate?

According to the real estate wholesale definition, this is completely legal procedure. This is because the wholesaling involves finding a property and making an offer for it, which depends on you to  diligently sell it to an investor. The wholesale transaction is completed when the final buyer purchases the property.

Each state has their own regulations and rules. It is advice to find a local attorney to clear out any legal concern before performing wholesale in your location and avoid any infraction. For instance, Maryland laws (PHIFA) is against the “stop foreclosure” direct mail pieces. They consider to be misleading because wholesaling does not avoid falling in foreclosure if ultimately, the owner will no longer be the owner.

What You Need to Know About How to be a Real Estate Wholesaler

From the previous 7 steps, you must work hard to become an expert in two areas: finding buyers and profit estimation.

  • Finding buyers is crucial as they are the ones closing the deals and making you money. Wholesaling websites like Craigslist is the fundamental initial step. Group meetings is also a good way to get to know potential investors and later send them and others some advertising material. Follow this order, start by finding a target audience and then invest money on advertising to make it worth. After a few deals, you’ll get to know your investors preferences to get into the deals you know they’ll like.
  • Your profit is the whole point of wholesaling. Make sure you make the right math before you spend too much time, energy and resources on a property that can’t make you the profit you were expecting.

Clauses in Your Wholesale Realestate Contract

Your clauses are nice wording that must benefit you in every step of the way and even save your skin before any incident. Make sure to include the following clauses:

  • Out clause: this one makes sure you are not obligated to purchase the property if you can’t find an investor, aka “partner” on time.
  • Assigning clause: this one allows you to wholesale a property to any person or business entity, and the owner doesn’t have to be aware about it. This way, you can sell the contract without putting any money to buy the house first.

Final, Short, Important Tips About Property Wholesaling

  • Keep your assigning contract as simple as possible.
  • Do not offer legal advice about the contract to the buyer or seller unless you are a licensed attorney.
  • Do not introduce yourself as a brokerage unless you are licensed as one.
  • Stay neutral and consult an attorney if any questions arise.
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Wholesale Real Estate

Getting Started in Wholesale To Millions

Wholesale Real Estate – Free Class on Getting started in Wholesale Real Estate.  You can wholesale real estate virtually or in-person.  I prefer digitally since it gives you more freedom. Virtual wholesaling course by Wholesale To Millions and includes the real estate marketing / wholesale contracts course.

Meet your Wholesale Real Estate Teacher

Allen Jimenez – Real Estate Broker #0549644TX

I was born and raised in Houston, TX with no brothers or sisters, just with my mother. After a conflicted childhood (that I’m thankful for today) I decided to move to a different part of Texas. This allowed me to start my own life at just 14 years old.

With not a dime in my pocket I’m proud to say I decided well when choose to use my abilities to sale with the right product. It was a path full of struggles, full of failures, but also a blessed path that brought me to where I am today.

My intention is to use all the good stuff I’ve learn from the past 15 years and share them with you. And guide you to success using a shortcut so you can avoid making the mistakes I already made. Just start having the life you want, the life you deserve starting now!

If I could do it, you can do it!

What Wholesale To Millions Can Do For You

In addition to our virtual education platform, we have been also working in creating a strong system. For this, we collected thousands of data from sources all over the country for you to filter, download and start using. That’s right! You can start working on your texts, your calls, you mail after a couple of minutes here!

And speaking of that, we can also show you how to call thousands of leads in just a couple of hours. We also teach you how to use mass text software to send as many texts as you want with just some few clicks!

When you see you get your first deal after a few days, you’re going to be super exited! I want you to learn, to work smart and continuously, to get a 6-figure income! Join me Getting started in Wholesale Real Estate!

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Wholesale Real Estate

Mass Text Software SMS Marketing in Lead Generation Strategies

EasyMassText.com is a service allowing mass text in bulk 250, 500, 1000, 2000, 5000, 10,000 at a click of a button. SMS marketing is one of the most effective lead generation strategies especially vs email marketing, since 93% of Text are opened vs 2-13% in email marketing tutorials.

Mass Texting Software Training

EasyMassText.com is an amazing tool to mass text prospects. It’s easy to use and very convenient. You can upload lists to text from a variety of sources, including Facebook friends.

How to use Mass Texting Software EasyMassText

easy mass text
  • You can have access to our samples once you become a member. Just find a list of candidates and save it as a .CSV file. Before saving t, you can edit your list to add tags/categories that will be helpful to filter contacts when texting.
  • Click on Upload Customers and select the file afore mentioned.
  • Go to the Manage Customers tab. Filter your contacts to make sure you se the Type of Contact you want to send a text. Use categories/tags accordingly. Click the star icon to add them to your Favorites list.

Start texting

  • With no contact selected, click on Send Message, and type your text. 
  • Create automatic fields using columns from your spreadsheet.
  • If you want to add an automatic field, insert it after the word with no space in between. For example, type “Hi,[First Name]…” and EasyMassText will change the field to the corresponding contact name. For this, you must make sure to have a clean list before you upload it to your system, so texts are sent smoothly, as personally written.
  • Select who is receiving your texts. It can go from all the contacts on the page, you can manually select a few, or let the system randomly select a certain amount.
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Wholesale Real Estate

Wholesale Real Estate Training – Virtual Wholesaling Real Estate

Wholesale To Millions is the only school with a licensed, active real estate broker with 15 years of experience in Wholesale Real Estate Training. Max Maxwell is ok wholesaling real estate but wholesaling real estate can be easier and more prosperous using our system and techniques.

You Are The Only One Who Can Change Your Life!

Virtual wholesaling and real estate wholesaling are the same. However, virtual allows you to do it from anywhere you are. So, you can do virtual wholesaling while traveling the world.

I’m going to give you a short cut to everything I learned for the past 15 years. In this Wholesale Real Estate Training, I’m presenting the strategies, the tools, the systems I created. I have been using them myself, and I know they will guide you to success.

Learn how to Wholesale Real Estate

Basically, this is the process to wholesale real estate:

  1. Find buyers
  2. Refine contact list of buyers
  3. Make thousands of calls in 2 hours using our system
  4. Use our iron clad contract that protects you from being sued
  5. Lock homes under contract
  6. Use our list of investors to buy the contract from you
  7. Resale the contract for a profit
  8. REPEAT

I will show you how to do this and more. All the key points in the contract to get you covered, to protect your assets, to stay out of trouble. I’m sharing my tips, my secrets, EVERYTHING! Just sit there in front of your computer and let the journey begin.

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Wholesale Real Estate

Wholesale To Millions – Virtual Wholesaling Jerry Norton

To Wholesale Real Estate, you need to find homes to buy. You need a list of homeowners that are likely to sell soon. You will have to define your criteria that are easy to resale fast. Better start taking action! Learn How To Get Your First Wholesale Deal here

To Wholesale Real Estate, you need to find homes to buy. You must get a list of homeowners that are likely to sell soon. You will need to define your criteria that is easy to resale fast like a 3bed/2bath 1500+ sqft home on a standard size lot (5000sqft in Houston). 

Our Wholesale-To-Millions Homeowner Finder

Our Wholesale-To-Millions Homeowner Finder

You can use our very own system. It took years for us to have all this data and this system for you. It is easy to use. Use it to determine what sales in your area, then locate those homes.  Then refine that list with sellers who been in their home for 3+ years. Then keep refining till you get below 1000 contacts. 

Find Leads In Less Than 3 Minutes

This system allowed you to find quality leads information in less than 3 minutes. After refining to meet your criteria, you can download this data in the format you prefer and add it to your CRM system.

Noelle Randall, Jerry Norton are training in virtual wholesaling. We are the only licensed brokers who can teach wholesale to millions lead generation training. Use our system at www.Wholesale-To-Millions.com or simply contact me I will send you a list to start you off.  

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Wholesale Real Estate

How To Wholesale Real Estate Step By Step – Virtual Wholesaling

How To Wholesale Real Estate Step By Step.  Getting started wholesaling is a step where 70% of students get stumped. They just want everything to be perfect, they want to have the perfect script, they want to know all answers to objections, they want to know all aspects of the contract.  I say FORGET all that… just get started!

What is Wholesale In Real Estate?

Wholesaling sis the art of finding cheap properties with values 50-70% their market value, to get them under contract. Then, we can sell the rights to purchase that property to the end buyer. This person usually makes money fixing and flipping. WE, the wholesalers, make money by finding this type of great deals.

What Are The Stages on How To Wholesale Real Estate?

There are four basic stages with many sub-processes and tips within. Relax! It’s easier than you think. Nothing too big not to not be accomplished. And I’ll walk you all the way. These stages are:

Number 1: Finding Deals

We have discussed several ways to find deals. This is basically a marketing stage that includes: online marketing, direct mail, using social media, networking… But who are you directing your mailing to? For this, you can:

  • Get a contact list of homeowners that fit your criteria
  • Import that into a prospect system
  • Call them using a 3-line call systems
  • Text homeowners using a mass text personalized system like we have on our site.
  • Use a CRM system to keep up with clients.  If you don’t have much money at least use google sheets or Excel.

Number 2: Dealing With The Seller

So, let’s say you found a deal. Now what?

  1. Run a Comparable Market Analysis. This is done by finding comparable sales. What have similar properties in the area sold for?
  2. Make an offer. Decide what the property is worth considering the results of your CMA and the After Repair Value (ARV). Normally, wholesaler’s offer is 50-70% the market value for that property.
  3. Submit the contract. If the seller accepts your offer, you must contact your closing agent (attorney or title company) and submit the contract to them.

Along this stage, always remember:

  • Don’t be rude to homeowners who are rude to you.  Beat them up with KINDNESS.  You can win folks over with time.
  • Follow up is key

Number 3: Find A Buyer

Like finding a deal, you will have to run a great marketing strategy to find a buyer. For instance, you can post the property online, use your network and alliances. You may also agree with a partner to ease the process by bringing the house to the deal and your partner bringing the buyer.

Number 4: Deal With The Buyer

  • Proceed to the agreement. This is the process to transfer the right to purchase the property. This can be done either by using an assignment agreement (most common) or double closing.
  • The closing. This is probably the phase where you must work the most on. You as the middleman must ensure everyone else is communicating and doing their part. But in the end, you’ll have your juicy commission.

Final Tips about How To Wholesale Real Estate

  • Use a sales contract that is written to benefit YOU, “The Wholesaler / Buyer”
  • Keep following up with any homeowners that may have an interest in selling.  It takes 7-10 calls to convert a lead.
  • KEEP FOLLOWING UP!!! This is the Key To Real Estate Sales & Sales in General
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Wholesale Real Estate

Wholesale Real Estate Contract Loopholes

This is a Guide to writing Wholesale Real Estate Contract that benefits/protects the Wholesaler (BUYER).  It is written like an attorney would write it to protect the client (YOU) from the contract loopholes. Wholesale to millions is for all levels of investors, wholesalers, and even homeowners.  No license required to learn.

Wholesale Real Estate Contract

The Contract is the backbone of Wholesaling. It is the Engine of Your Car. If it is not right you can lose the deal, lose money, and end up in a lawsuit.

Discover The Wholesale Contract Loopholes

Wholesale Real Estate Contract loopholes

We already discussed how to fill out a wholesale contract template. Now, we are going to give a closer look at the loopholes in the contract. These are ways to get you out of the contract or to save you from losing money due to last-minute changes.

Title Commitment

This must be given to you (I usually put) 20 days after the title company receives a copy of the contract. 

The Survey Clause

Within 10 days after the Effective Date of this contract, the Seller shall furnish to the Buyer and the Title Company the Seller’s existing Survey of the Property and a Residential Real Property Affidavit. Therefore, if the seller fails, the buyer may terminate this contract and the earnest money will be refunded to the buyer.

Objections

Similarly, you have 10 days after receiving the title commitment to get out of the contract based on failure with schedule A, B or C. This is another option to get your earnest money back.

Property Conditions

Under the Property Conditions clause, always select the option that says “Buyer hasn’t received the Notice” in the Seller’s Disclosure Notice section. You should receive this notice. If you don’t, however, you can terminate the contract at any time prior to the closing. Consequently, the earnest money will be refunded to the Buyer.

Acceptance Of Property Condition

Neither party has to pay for lender required repairs if the parties do not agree to pay for these repairs or treatments, or if they exceed 5% of the sales price. The buyer can terminate the contract and the earnest money will be refunded to the buyer.

Broker’s Fees

Salad paint all if any brokers fees if applicable, not the buyer

Special Provisions

Yes, this section to disclose any fact that hasn’t been declared previously throughout the contract, such as specific repair agreed, license holder information. In case you are getting an FHA loan you should state a buyer’s expenses amount that can go up to 3% of the sales price. In case you are using a hard money loan you can ignore this section.

Termination Option

This plus allows you to get yourself out of a contract for any reason and recover your earnest money within 10 days after the effective date. In case you want to do so, you must send a termination notification to the seller within the option period.

Proration

This clause states that the seller will everything prorated and up to date when by the execution day.

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Wholesale Real Estate

How To Find Real Estate Wholesale Deals

Today we learn about how to find wholesale real estate deals. Finding wholesale real estate deals is actually a form of marketing and advertising. But I understand, when first getting started you must watch every dollar to get your first wholesale deal. So today, I will teach you how to find properties at wholesale real estate value very cheap. Learn more here.

This training is for real estate Wholesalers, Investors, Realtors, Brokers, and basically anyone who wants to find a house dirt cheap. In this course today we will talk about how to effectively place your signs, developing and purchasing buyers list, developing & purchasing sellers list, importing those list into a multi-line professional caller.  Cold Calling real estate wholesaling is a top priority for you every day.

How To Find Real Estate Wholesale Deals?

Now that you know what wholesaling is, that you like the idea and want to get stated ASAP, the first question you do to yourself is How I Find These Deals?

Check Out Our To-Buy List for Wholesaling

You can start by buying some of Our Contact Lists and add that data to your system. We already did a big, heavy work for you and collected contact information from sellers in many areas.

  • Our sellers list includes name, contact info, house, and neighborhood information.
  • You can also get an Expired or For Sale By Owners list.
  • People In-Need list is built with contact info from people that may be urgently looking for money. How can you identify them? Using water disconnected notices, bankruptcy files, foreclosure notices, tax in default.

Partnering with someone in your area will help you save money by splitting the contact list cost. You will both benefit and for a part of the price.

Finding Wholesale Deals Is All About Marketing Yourself

We will talk about the ratios and numbers that break down how advertising and marketing dollars should be spent. In real estate marketing we will discuss staying organized in your multi-line professional caller. We will talk about the setup of your multi-line professional cold caller. And lastly, we talked about social media advertising to attract sellers and buyers to your website. 

Invest On Bandit Signs

If they are legal in your state, you can leverage for this great alternative. Yes, having them printed and installed may take a few hundred dollars. But think of this: if these signs get you at least one deal, they would be worth the money.

Are you starting with no funds? You can always do them yourself! Buy a big fat market and some blank sings and fill them with your info, 3-4 lines, your vanity number, your website and place them around your area. Remember to use contrasting colors, installing them above eye level in posts or use stakes to put them in the ground.

The Secret To Success In Real Estate Wholesale With Bandit Sings

Master your farm area. Get to know the area you plan to work very well before you start. Don’t waist your time, effort, and money in an area with a super low turnover rate.

Also drive around the area, create your own pinpoint map with your phone or take pictures of the places you want to have your signs installed.

Work on Your Wholesale Mastermind

These are two important things you must cultivate to grow your wholesale business:

The Power Of Delegating In Wholesale Real Estate

You don’t have to personal take care of every little task in your business to have it done right. Delegate the simple tasks that may take some good time from you and use that time to get yourself to the next level, to constantly improve yourself.

Virtual wholesaling means you can do this from anywhere… Just delegate the tasks like Max Maxwell.

Work on your alliances

Realtors, bankers, loan officers, title company workers, escrow agents, county front desk, state lawyers… This is the people you need around you! Build quality relationships, bring value to them, be there for them and they’ll be willing to help you along the way.

Where are your real estate wholesale deal coming from?

From my experience, I can tell the following numbers:

  • 30% of your leads will come from bandit signs
  • 30% from cold calling
  • 20% from social media
  • 10% from referrals
  • 10% from mail campaigns

You can choose to exploit every method, or better focus on those you master in the beginning, knowing already the potential they have.

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Wholesale Real Estate

Real Estate Comparable Market Analysis CMA

This is a real-world example of how realtors / brokers / wholesalers / investors determine a property value.  A student wanted to know how much this property worth is.  So, we are using this real-world real estate Comparable Market Analysis CMA example today. Learn more here.

Step By Step Real World Comparable Market Analysis CMA

Let’s walk together through the process. A student sent a link of a property with a price of $125,000. Here is what a usually do from my computer:

1.      Find basis information about the property

  • First thing we do is searching for the address online. It is listed in several sites, meaning it is not good for wholesale.
  • Zillow suggest a value of $177,000 based on a huge market area.
  • HAR.com describes this as a 3bed, 2 and a half bath property with 1505 sq ft on a lot of 4,490sq ft. located in Tomball, TX. Subdivision is Westbourne. Built in 1994. Their value is almost $155,000
  • Use google maps street view and take a virtual block around the street and the block to check the neighborhood or find oddities.

2.      Leverage the power of aerial view

Use the aerial view to have a closer look into neighbor’ properties, conditions of lots around, value of homes nearby.

  • In this case, the retainer pond found behind the property suggest many possible troubles like mod, mosquitoes, snakes, or water accumulation after rain.
  • Also, we get to see the size and price of this property and compare it to the ones next door. This is a way smaller house with the same problem than the neighbors’ with not a big difference in prices. If you can get a bigger place in the same area for the same money, this means you can drop the price.

3.      Comparing To Similar Properties Within The Zip Code

In this case, I’m running a search on HAR.com for homes of the same type sold in the same zone, listed from 0-100 days. Narrowed my results by using the corresponding subdivision and adding similar criteria to the property under study. Square footage is perfect to start. Checked the few closest properties and compare the features and value to the offer you have.

4.      Create a Comparable Market Analysis CMA with any tool

Real Estate Comparable Market Analysis CMA

This is an optional step. As I have access to all the tools HAR.com tools, I’ll use them to create a CMA with the more similar options I found in my previous research. Simply add all the information requested and generate a CMA. This will give you an idea of the right price, of how long does it take to be sold in that area and how close the price was to the accepted offer.

Learn more here.

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Wholesale Real Estate

How much is my House Worth? – Real Estate Comparable Market Analysis

How much your home worth? Are you planning on buying an investment property and need to know the value? You can find out by doing a Market Analysis also known as a Comparable Market Analysis. Real estate brokers & realtors use this technique every single day to evaluate properties. Now you will learn how to evaluate any home or any type of real estate in our school.

What is Comparable Market Analysis

You may also hear the term CMA which is Comparable Market Analysis this is an evaluation of how much a property is worth at the current moment. How much a person would be willing to pay for it in today’s market. this should not be confused with the Tax Appraised Value.

CMA vs Tax Appraised Value

A market analysis is what the property will sell for in today’s current market. The state is in a price all this state or a city does to issue taxes. Both valuations can be very different especially in dense city areas.

What To Look At When Building Your Market Analysis

  • Define your market area. Make it very small, take a specific section of the subdivision if necessary.
  • The quality of schools within your market area has a big effect on your analysis. The better the schools, the higher the home value.
  • Make sure you compare homes of the same type. For instance, divide them into a single family, townhome, or condo.
  • Similarly, compare homes according to the years of construction and renovations performed.
  • Square footage is super important. You can’t compare the values of homes with a huge difference in lot square footage or building square footage or living square footage. This all weighs in your value.
  • Also, the ratio of the number of bedrooms, bathrooms, and car spaces in the garages versus the square footage says a lot about the dimensions of the rooms and their convenience.

Defining the Market Area

Real Estate CMA Comparable Market Analysis

Now we must define the area that is comparable to the home. Try not to use ZIP code tools or radios tools as they can hurt us when gathering data. This is because you end up leaving out important comps or including irrelevant comps. To make an informed decision, we use a Pinpoint Plot Tool. If you don’t know the neighborhood call some realtors that master that area.

Investigate for oddities

Sometimes, great deals come with hidden oddity. You want to stay away of anything that is weird, hard to sell. Although you may also consider lowering the value due to such oddities, which may include:

  • Busy streets/heavy traffic
  • Bad layouts/tiny rooms
  • Bad neighbors: dirty, smelly, loud neighbors or neighbors running businesses
  • HOA/ Maintenance fees
  • Flood zone/ flooded property
  • Somebody died mysteriously/murdered inside the house

Why Not Using Zillow or Trulia for CMA Comparable Market Analysis?

Trulia or Zillow as well as many other companies deal with large amounts of data. they do the best with what they have but it’s impossible for them to get the right value because of how different each neighborhood is, the proximity to other neighborhoods, whether these are good or bad, and the different values that can exist in the same neighborhood.

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Wholesale Real Estate

Writing The Wholesale Real Estate Contract

In Wholesale Real Estate Training – Writing The Sales Contract is one of the most important factors in locking down a transaction, then selling the rights to the property.  If the contract is not done right, you have nothing to sell.  So, this is one of the most important parts. I recommend using our template and taking the full course on Wholesale Real Estate. Learn more here.

Real Estate Wholesale Contract

Having a good wholesale real estate contract is not as hard as you think in the beginning. You just need to make sure not missing any of this important aspects and stating everything extra clear. It’s all black or white in legal documents, it is there, or it is not there. And consequences can be devastating if something important is not there. You must be foresighted, anticipate any bad scenario and include clauses to get you out of them.

Structure Of The Wholesale Real Estate Contract

Start by using your local commission template, have an attorney create you one, or simply buy one from us. Not to brag, but our template is written in a way to benefit the buyer (YOU), not in a neutral way.

Mostly, the structure is the same, so you can understand and fill it out the relevant sections as indicated below:

  • Parties. Have the parties involves, that is, the seller and the buyer (you) identified at the beginning of the contract.
  • Property. Find the legal description of the property by going to the local appraisal district. You need to find the lot and block description city, county and complete the address section in the format requested. Also, make sure to state what comes with the property and what does not by using the inclusions, accessories, and exclusions section.
  • Sales price.  Always select the Third-Party Financing Addendum.
  • License holder disclosure. This must be filled if you or anyone in your LLC is a licensed agent
  • Earnest money. An amount held by the title company while making sure the property title delivered is totally free of legal or financial attachments.
  • Title policy and survey.
    • Disclose the name of the title company you’re working with.
    • The commitment section gives you time to check irregularities found by the title company during a certain period and back out of the business if needed.
    • Like the Commitment, the survey is another loophole that can favor you.
    • Use the objections in case you have something new to discuss. If the deal is not completed, you’ll get your earnest money back.
    • Title notices are just a standard subsection. Feel free to read them later.
  • Property conditions. This is an important section to fill as you’ll be showing this to the next potential buyers. This reveals the real, current conditions of the property. It should the repairs that need to be done, but the seller won’t perform as the property is being sold as-is.
  • Closing. Make sure to put a deadline instead of a date at the closing. 15 days after execution is usually time enough.
  • Possession. This clause states that the new buyer will get the keys and the right to move in just after funding the purchase.
  • Special provisions. Here, the wholesaler should disclose he/she is using financing or a line of credit to fund this transaction. This will get you cover in case of changing your payment method from cash to another one without breaking the contract.
  • Settlement and other expenses. This states the seller will have to pay you a closing cost equal to 3% of sales prices or up to $9000.
  • Default. Protects you in case the seller backs out. In case of having no loopholes, this clause will guarantee you keep the earnest money or sue the seller for a substantial amount.
  • Mediation. Makes sure you split the mediation clause in case of disagreements before going to court.
  • Attorney fees will be paid by the part in fault.
  • Escrow. Similar to the title company, the escrow ensures the process goes accordingly and fairly to each party.
  • Pay attention to the Federal Taxes Requirements and pay them, as necessary.
  • Both, seller, and buyer must receive Notices via email and post mail.
  • Check what other forms are being used in your contract in the Agreement of Parties section.
  • Termination Option. Commonly a term of 10 days and $100 is set, but this depends on the property.
  • Follow your contract and Consult an Attorney before signing. In case you do, fill the blanks with the right information.
  • The Execution Date is the one when everybody signs the deal.
  • In case the wholesaler is a licensed agent, the Broker Information section must be filled out. This will get you another extra 3%

Loopholes In A Real Estate Wholesale Contract

You have 3 different ways to get you out of a contract:

  • Option period. You can back out for any reason. Make sure to put as little money as possible there.
  • Seller disclosure. If seller never disclosed something important or gave you a required documentation, you have the right to back out of this deal unharmed.

Title commitment. You can always use this clause when still on time to get your earnest money back in case you figure out this deal won’t go anywhere.